Q: Your selected company issues a new bond. Assume that your selected company issued a new 10-year bond…
A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…
Q: Assume that you purchased a $10,000 corporate bond. The interest rate is 7.00 percent. What is the…
A: Bond purchased amount (FV) = $10,000Interest rate = 7.00%
Q: A $9,000 bond matures in 10 years and pays 2 percent interest twice a year. If the bond sold for…
A: Actual investment rate refers to the rate of return generated by the investment made by the issue of…
Q: An investor purchases a 20-year, $1,000 par value bond that pays semiannual interest of $40. If the…
A: The Stated semiannual interest payment $40 Rate of interest = 5% 20 years * 2 = 40 payments Present…
Q: 4) A bond promises to pay $250 in 3 years. The annual interest rate is 5%. What is the bond's price…
A: Bond price today = Bond price 3 years from now / (1 + Interest rate)^Time
Q: A bond has a face value of $1,000 with a maturity date 15 years from today. The bond pays…
A: The market value of a bond refers to the current price that an investor is willing to pay for the…
Q: A Treasury bond that you own at the beginning of the year is worth $1,020. During the year, it pays…
A: Dollar return = Ending value + interest - beginning value Dollar return = $1,030 + 32 - $1,020…
Q: Ocean Adventures issues bonds due in 10 years with a stated interest rate of 12% and a face value of…
A: Coupon rate = 12% (Semi-annual payment)Face value = $490,000Bond period = 10 yearsBond yield = 13%
Q: Larry's Bank buys 58 bonds of the Puppet House Corp. through a broker. The bonds pay 10 percent…
A: Part A.Characteristics of the bond:Payment frequency = Semi annual, Period = Half year.Periodic…
Q: Calculate the present value of an $80,000, 10%, five- year bond that pays $8,000 ($80,000 × 10%)…
A: Given details are : Par value of bond = $80000 Coupon on bond = $8000 Market rate of interest = 10%…
Q: se the following tables to calculate the present value of a $315,000 @ 6%, 5-year bond that pays…
A: The present value of the bond is the future inflows from bonds discounted at the market rate of…
Q: Seaside issues a bond that has a stated interest rate of 12%, face amount of $40,000, and is due in…
A:
Q: Ocean Adventures issues bonds due in 10 years with a stated interest rate of 10% and a face value of…
A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…
Q: A 17-year bond pays interest of $45 every six months and will mature for $1,000. Also assume that…
A: Bonds are debt instruments issued by entities. Bonds pay regular interests in the form of coupons.
Q: A Treasury bond that you own at the beginning of the year is worth $1,100. During the year, it pays…
A: Treasury Bond: Beginning value (purchase price)= 1100 Ending value (Sale price)= 1110 Interest…
Q: A Treasury bond that you own at the beginning of the year is worth $1,055. During the year, it pays…
A: Dollar return is calculated as: = (Price at end + Dividend) - Price at beginning Percentage return…
Q: A government bond with a face value of $1,000 was issued eight years ago and there are seven years…
A: Cash Flow at the time of maturity = $1000 Interest (Annuity) semiannually = $45 Table value are…
Q: Use the following tables to calculate the present value of a $130,000, 5%, 6-year bond that pays…
A: The face value of the bond is $130,000.Maturity is 6 years.Annual coupon payments are…
Q: Suppose a State of New Mexico bond will pay $1,000 eight years from now. If the going interest rate…
A: We are given the following information-Future Value (FV) : $1,000 No. of the years : 8Interest rate…
Q: The Saleemi Corporation's $1,000 bonds pay 6 percent interest annually and have 14 years until…
A: Annual coupon interest payments = 6% of 1000 = 60 14 such coupons will be paid.
Q: The face value of a bond is $71,000, its stated rate is 7%, and the term of the bond is five years.…
A: A bond is a fixed-income security that pays regular fixed periodic payments to the bond holder and…
Q: Roman Destinations issues bonds due in 10 years with a stated interest rate of 5% and a face value…
A: The bonds are the financial instruments of the business that are used to raise the money from the…
Q: A five year bond pays interest $85 once a year and will mature for $1000. YTM is 10%. Determine the…
A: Macaulay Duration Formula: Macaulay Duration (MD) = (C1*t1 + C2*t2 + ... + Cn*tn) / (PV + FV) /…
Q: Fingen's 18-year, $1 comma 000 par value bonds pay 9 percent interest annually. The market…
A: Yield to maturity of a bonds refers to the rate of return that the bond holder will earn if he holds…
Q: McAllen Corporation is issuing a $20,000,000 20-year bond with a stated interest rate of 10%. This…
A: Bond A bond is basically an interest-bearing loan instrument that is issued by the companies in…
Q: Seaside issues a bond that has a stated interest rate of 11%, face amount of $50,000, and is due in…
A: Compound = Semiannual = 2 Coupon rate = 11 / 2 = 5.5% Face Value = fv =$50,000 Time = t = 5 * 2 = 10…
Q: The Saleemi Corporation's $1,000 bonds pay 6 percent interest annually and have 11 years until…
A: The face value of the bond is $1,000.The coupon rate is 6%.The maturity is 11 years.The price of the…
Q: Calculate Bond Interest Rates. Fill in the correct answers. Please show your work A municipal bond…
A: A bond is a debt instrument used to raise capital from investors rather than traditional financial…
Q: A bearer bond worth Rs. 50,000 after six years. What will be the present value of the bond if…
A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…
Q: BC Inc. plans to issue $500,000 face value bonds with a stated interest rate of 12% and market…
A: Price of bond is the present value of periodic cash flow and present value of the face value of bond…
Q: Suppose a U.S. government bond pays $2,155.40 in 5 years at 6% interest. Calculate the present value…
A: Future value of bond (FV) = $ 2,155.40 Period (N) = 5 Years Interest rate (R) = 6%
Q: A government bond with a face value of $1,000 was issued eight years ago and there are twelve years…
A: Par value of bond (FV) = $ 1000 Coupon rate = 9% Coupon amount (C) = $ 90 Number of years pending…
Q: What is the present value of a 10-year bond outstanding with 8 years left in “year-to-maturity,” 6%…
A: A bond is a useful tool for finance concepts. Bond market values are used by analysts and investors…
Q: Use the following tables to calculate the present value of a $502,000, 5%, 5-year bond that pays…
A: Present Value of Bond = Present Value of Coupon Payments + Present Value of Redemption Value…
Q: A $500,000, ten year, 7% bond issue was sold to yield 6% interest payable annually. Actuarial…
A: Answer: Correct option is A: $36,798 premium
Q: You purchased a $1000 10-year bond that pays $95 annually. If current interest rates are 11.25%,…
A: Yield to maturity Years 10 coupon amount (PMT) 95 Face value (FV) 1000 Yield rate 11.25%…
Q: Use the following tables to calculate the present value of a $791,000, 5%, 6-year bond that pays…
A: The present value of bond can be calculated as present value of coupon payments and present value of…
Q: rate on these 10-year bonds is 4.9%, how much is the a) with annual compounding
A: Given information : Expected amount to be paid $1,000.00 Time to be paid (years) 10 Interest…
Q: Suppose a state of California bond will pay $1,000 eight years from now. If the going interest rate…
A: Maturity price (FV) = $ 1000 Period (t) = 8 Years Annual interest rate (r) = 6.4%
Q: Federal Bank is issuing a growing perpetual bond with a face value of Rs. 1000. The interest amount…
A: Perpetual bond: In actuality, perpetual bonds constitute a debt obligation, but only in the sense…
Q: earson Co issue its $140,000 at a price of 94, the stated rate is 6%, the bond term is 4 years, and…
A: Solution: Annual interest payment = Face value of bond * stated rate of interest = 140000 *6% =…
Q: Calculate the Macaulay duration of an 8 percent, $1,000 par bond that matures in three years if the…
A: Duration of the bond is that point of time for which, if the bond is held, then an investor is…
Q: Use the following tables to calculate the present value of a $672,000, 6%, 6-year bond that pays…
A: Formula: Present value of the bonds=Present value of the face value of the bonds+Present value of…
Q: Consider a fixed-payment security that pays $250 at the end of every year for eight years. If the…
A: Present value = Amount to be received annually X Present value of annuity of $ 1 at 3% for 8 years
Q: If a one-year bond with a face value of $100 (the bond pays the bearer $100 one year from now) sells…
A: Face Value of bond = $100 Selling Price today = $85 Interest in 1 year = $100-$85 = $15
Q: In May 2000, the U.S. Treasury issued 30-year bonds with a coupon rate of 6.25%, paid semi-annually.…
A: Here,FaceValue of Bond is $1,000Coupon Rate is 6.25%Time to Maturity is 30 yearsCompounding Period…
Suppose a Puerto Rico government bond pays $3,255.80 in 4 years at 4% interest. Calculate the present
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- Seaside issues a bond with a stated interest rate of 12%, the face value of $40,000, and due in 8 years. Interest payments are made semi-annually. The market rate for this type of bond is 14%. What is the issue price of the bond?A 10-year $2,000 bond pays a nominal rate of 8% compounded semiannually. If the market interest rate is 9% compounded annually and the general inflation rate is 5% per year, find the actual and constant dollar amount (time= year zero dollars) of the 14th interest payment on the bond.The Saleemi Corporation's $1,000 bonds pay 5 percent interest annually and have 13 years until maturity. You can purchase the bond for $865. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 8 percent?
- The Saleemi Corporation's $1000 bonds pay 7 percent interest annually and have 14 years until maturity. You can purchase the bond for $1,095. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 4 percent? ___________________________________________________________________________a. The yield to maturity on the Saleemi bond is ____ %. (Round to two decimal places.)You purchased a $1000 10-year bond that pays $95 annually. If current interest rates are at 9.5%, what is the present value of your bond?You have purchased a U.S. Treasury bond for $3,000. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $5,000. What interest rate will you earn on this bond? 3.82% 4.25% 4.72% 5.24% 5.77%
- Use the following tables to calculate the present value of a $608,000 @ 6%, 6-year bond that pays $36,480 interest annually, if the market rate of interest is 7%. Round to the nearest dollar. Present Value of $1 ¦ Present Value of Annuity of $1 Periods 5 % 6 % 7 % 10 % ¦ Periods 5 % 6 % 7 % 10 % 1 .95238 .94340 .93458 .90909 ¦ 1 .95238 .94340 .93458 .90909 2 .90703 .89000 .87344 .82645 ¦ 2 1.85941 1.83339 1.80802 1.73554 3 .86384 .83962 .81630 .75131 ¦ 3 2.72325 2.67301 2.62432 2.48685 4 .82270 .79209 .76290 .68301 ¦ 4 3.54595 3.46511 3.38721 3.16987 5 .78353 .74726 .71299 .62092 ¦ 5 4.32948 4.21236 4.10020 3.79079 6 .74622 .70496 .66634 .56447 ¦ 6 5.07569 4.91732 4.76654 4.35526 7 .71068 .66506 .62275 .51316 ¦ 7 5.78637 5.58238 5.38929 4.86842 8 .67684 .62741 .58201 .46651 ¦ 8 6.46321…A bond matures in 20 years, at which time it pays the owner $1,000. It also pays $70 at the end of each of the next 20 years. If similar bonds are currently yielding 7%, what is the market value of the bond? Select one:cannot be determined from the information givenexactly $1,000under $1,000over $1,000a. Assuming you purchased the bond for $350 what rate of return would you earn if you held the bond for 25 years until it matured with a value $1000? a. Rate of return____% b. Suppose under the terms of thebond you could redeem the bond in 2024. DMF agreed to pay an annual interest rate of 1.4 percent until the date. How much would the bond be worth at that time? b. Bond value_____ c. In 2024 instead of cashing in the bond for its then current value you decide to hold the bond until it mature in 2043. What annual rate of return will you earn over the last 19 years? c. Rate of return___%
- Suppose a State of North Carolina bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 5.5%, how much is the bond worth today? $585.43 $614.70 $645.44 $677.71 $711.59A $1,000 face value bond issued by the Purdue Company currently pays total annual interest of $80 per year and has a 15-year life. a-What is the present value, or worth, of this bond if investors are willing to accept a 10 percent annual rate of return on bonds of similar quality bond? b. How would your answer change is the bond makes semi-annual payments? c-How would your answer in (a) change if, one year from now, investors only required a 6 percent annual rate of return on bond investments similar in quality to the Purdue bond? d-Suppose the original bond can be purchased for $925. What is the bond’s yield to maturity?Suppose a State of New Jersey bond will pay $1,000 five years from now. If the going interest rate on these 10-year bonds is 4.1%, how much is the bond worth today? 1. $675.79 2. $817.99 3. $628.96 4. $749.39 5. $669.10
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