The market price of a semi-annual pay bond is $964.09. It has 10.00 years to maturity and a coupon rate of 5.00%. Par value is $1,000. What is the yield to maturity? Submit

Q: Consider a coupon bond with a face value of $900, one year to maturity, and a coupon rate of 6%…

A: The following formula will be used:

Q: Consider a bond with a principal of $1,000 that pays a coupon of $100 per year. If the bond matures…

A: Bond: It is a fixed income instrument that represents a loan made by an investor to a borrower. We…

Q: What is the duration of the following bond: $1,000 par value, 6% annual coupon, 4 years to maturity,…

A: Variables in the question:Par value=$1000Annual coupon=6% (assumed paid annually)N=4 yearsYTM=6.5%

Q: Consider a bond with 15 years to maturity, a coupon rate of 13% that is paid annually, a face value…

A: Face value = $1000 Coupon rate = 13% Coupon amount = 1000*0.13 = $130 Yield to maturity = 15% Years…

Q: Compute the current yield of a(n) 10.5%, 20-year bond that is currently priced in the market at…

A: 1. Current yield on bond = 2. yield to maturity  = where,RV =redemption value NP = current pricen =…

Q: Compute the yield to maturity on a bond with a $1000 par value, a coupon rate of 3.75% with…

A: The yield to maturity rate of return realized by holding the bond till the maturity of bond and…

Q: Calculate the value of a fixed-rate bond with fifteen years left to maturity, annual coupon payments…

A: Given data; face value = $1000 coupon rate = 5% yield to maturity = 3.5% years to maturity = 15…

Q: Compute the intrinsic value of an 18% coupon, a 4-year maturity bond whose principal will be repaid…

A: Intrinsic value is the present value

Q: Calculate the current yield of a bond with $1,000 face value, 7.50% coupon rate, quarterly coupon…

A: A bond is an instrument that represents the loan that is made by the investor to the company and…

Q: A bond with a face value of $1,000 pays 6% annual coupon on a semiannual basis. The maturity is 8…

A: The face Value is $1,000 The annual Coupon rate is 6% Yield to maturity is 12% To Find: Duration of…

Q: Compute the intrinsic value of an 18% coupon, a 4-year maturity bond whose principal will be repaid…

A: Intrinsic value is calculated by present value of cash flows. Present value of cash flows = Cash…

Q: Assume semi-annual payments. A bond has a coupon rate of 2.8% when yields are 4.33%. If the bond has…

A: Bond price is the present discounted value of its expected cash flow at the given interest rate. A…

Q: A bond certificate with a value of P 1,081,038.07 has a par value of P 1,000,000.00 and a redemption…

A: Using financial Calculator, PV (Price) = P 1,081,038.07  FV (Face Value) =  P 1,030,000.00 N = 10…

Q: The 1-year spot rate is 6%, the 2-year spot rate is 7%. The Treasury plans to issue 2-year maturity…

A: Bond is a debt security that is issued by organizations to raise debt funds from public and…

Q: A 10 year maturity bond with a coupon rate of 5.5% and face value of $1,000 makes semi- annual…

A: In this question we require to calculate the yield to maturity of a bond if its current selling…

Q: Consider the following par bond (ie coupon rate=yield): Year: 10 and 20 years . Yld 1.50% and 2.0%…

A: The corporation and government can raise finance by issuing bonds. The borrower i.e bond issuer is…

Q: A semiannual coupon bond is selling for Sl, 083. It has a face value of  $1,000 a coupon rate of 7.7…

A: Step 1: Calculate the Semiannual Coupon PaymentFind the annual coupon payment by multiplying the…

Q: What is the semi-annual coupon bond's nominal yield to maturity, if the years to maturity is…

A: Given: Years to maturity = 15 years Coupon rate = 10% Par value = $1000

Q: has a coupon rate of 8%, face value of $100, and 3 years to maturity. If its yield to maturity is…

A: Given information :

Q: Prepare a duration table for a coupon bond using the following assumptions: a. $100,000 par value…

A: Duration of bond - it measures the risk of change in price of bond due to change in interest rate in…

Q: Consider a coupon bond that has a $1,000 par value and a coupon rate of 10%. The bond is currently…

A: Solution:- Bond’s Yield to Maturity (YTM) means the rate of return the bond is providing to the…

Q: You are considering a bond with a coupon rate of 10% per annum. Coupons are paid semiannually. The…

A: Computation:

Q: What is the fair price of a bond assuming that the annual rate is 5.32% if its face value is Php…

A: Assuming i is the annual effective rate and i(4) is the effective quarterly rate. (1+i) =…

Q: A ten-year maturity bond with a coupon rate of 6% is now selling at $1,085. What are the current…

A: Here,CouponRate is 6%Current Price of Bond is $1,085Time Period of Bond is 10 yearsFace Value of…

Q: Calculate the duration of a coupon bond with the following features. What general conclusion can we…

A: Bond duration is referred to as the method of the measurement that how much there will be changes in…

Q: Assume a par value of $1,000. Caspian Sea plans to issue a 10.00 year, semi-annual pay bond that has…

A: To calculate the price of the bond we will use the below formula   Price of bond =…

Q: The present value (price) of a 10 year bond is 938.55 TL if the market quoted yield to maturity is…

A: The coupon rate of a bond is the fixed annual interest rate that the issuer of the bond agrees to…

Q: A bond with face value $1399 and a term of 11 years pays quarterly coupons of 11% per annum. The…

A: Face value = $1,399Period = 11 yearsCoupon rate = 11%Market price = $1,050coupon payment = Quarterly…

Q: Compute the Macaulay duration under the following conditions:   a. A bond with a four-year term to…

A: Macaulay Duration measures the sensitivity of bond price to changes in interest rates. It can be…

Q: What is the price of the bond that has a coupon rate of 5.6%, a yield to maturity of 6.3%, a face…

A: A bond is a financial instrument that represents an obligation owed to an investor, usually a…

Q: What is the yield to call of a 20-year to maturity bond that pays a coupon rate of 6.54 percent per…

A: Some bonds have option of calling bond before the maturity and if called before maturity the yield…

Q: What is the market price of a bond with a maturity of 21 years, a coupon rate of 9.2% paid…

A: Price of the bond will be equal to the present value of the coupon payments and maturity value of…

Q: 1. We have the opportunity to buy a 10-year (original term) bond with 7 years of semi-annual coupon…

A: The objective of the question is to calculate the purchase price of a bond given its coupon rate,…

Q: What is the value of a bond that matures in 5 years, has an annual coupon payment of OMR 110, and a…

A: Using excel PV function

Q: A zero - coupon bond has a face value of R10000.it matures in 13years. The yield to maturity is 4.7…

A: The objective of the question is to calculate the present value of a zero-coupon bond. A zero-coupon…

Q: a 19.5-year, zero-coupon bond. The yield to maturity is 6.51 percent compound semi-annually and the…

A:

Q: What is the duration of a five-year bond with a coupon rate of 7%, a yield to maturity of 8%, a…

A: Given: Years = 5 Coupon rate = 7% Yield to maturity = 8% Face value = $1,000

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like: