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: The market price of a semi-annual pay bond is $983.56. It has 10.00 years to maturity and a coupon…

A: The return rate after adjusting the nominal yield with the number of compounds in a year will be…

Q: Consider a 20 year bond with a 10% coupon rate paid and compounded annually. A $1000 face value and…

A: The price of the bond is what the investors are willing to pay today.

Q: You are purchasing a 16.5-year, zero-coupon bond. The yield to maturity is 5.53 percent compound…

A: Calculate the current market price as follows: Current market price = Face value / (1+rate)^years

Q: What is the bond's coupon rate?

A: Bond Coupon Rate: It refers to the yield rate paid by the issuer to the bondholder. It is estimated…

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: As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 18 years,…

A: We are required to calculate the bond value  in one year i.e. after one year in this question from…

Q: The market price of a semi-annual pay bond is $990.08. It has 17.00 years to maturity and a coupon…

A: The return on the bond security that can be enjoyed by an investor for holding that security till…

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: What is the yield to maturity of a bond with the following characteristics; all have a maturity of…

A: Face value (F) = 10000 Coupon (C) = (4% of 10000) / 2 = 200 n = 10 years = 20 semiannual periods r =…

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: What is the semi-annual coupan bond's norminal yield to maturity (YTM), if the years to maturity is…

A: Bond is debt-instrument that is used by entities t raise debt funds from public-at-large. Bonds pay…

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: What is the yield to maturity (expressed as APR with semi-annual compounding) for a three-year bond…

A: Compound = Seminannual = 2Time = t = 3 * 2 = 6Coupon Rate = c = 10/2 = 5%Face Value = fv =…

Q: What is the Yield-to-Maturity of a bond with a par value of $1000, a current price of $819.36, 11…

A: The objective of the question is to calculate the Yield-to-Maturity (YTM) of a bond. The YTM is the…

Q: What is the price of a bond with a coupon rate of 5.20% and semi-annual payments, if the…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: A 30-year bond has a par value of $1,000, a coupon rate of 9% with semiannual coupon payment, and a…

A: The computation of current price of bond as follows: Hence, the current price of bond is $757.58.

Q: Analyze the 20-year, 8% coupon rate (semi-annual payment), $1,000 par value bond. The bond currently…

A: Here, Given information Time Period =20 years  Semi -annual coupon rate = 8%/2= 4%(As period is semi…

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: What is the semi-annual coupon bond’s nominal yield to maturity (YTM), if the years to maturity is…

A: Par Value = 1000 Price of Bond = 105% × 1000 = 1050 Coupon = Coupon Rate / 2  × Par Value Coupon =…

Q: The market price of TRUST bond is currently $890. Its par value is equal to $1,000 and it is…

A: Bond: These are fixed-income securities that reflect loans from investors to borrowers . A bond can…

Q: Suppose a company issues a bond with a par value of €1,000, 5 years to maturity, and a coupon rate…

A: Par Value = €1,000 Years to Maturity = 5 years Coupon Rate = 8.5%  Yield to maturity(YTM) = 7.5%…

Q: A 10 year bond pays interest of $28.20 semiannually, has a face value if $1000, and is selling for…

A: Bonds are debt security which is generally issued by corporates or governments to arrange funds.…

Q: A bond currently sells for P850. It has a 8year maturity, an annual coupon of P80, and a par value…

A: Yield to Maturity (YTM) is the internal rate of return required for the present value of future cash…

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: 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: A bond has a par value of $1,000, a time to maturity of 15 years, and a coupon rate of 7.80% with…

A: A bond is a kind of debt security issued by the government and private companies for raising funds…

Q: Suppose a five-year face value of $1000 bond with a 9% coupon rate, and coupons are paid…

A: Compound = Semiannually = 2Time = t = 5 * 2 = 10Face Value = fv = $1000Annual Coupon Rate = 9%Annual…

Q: What is the YTM of a bond with 12 years to maturity, coupon rate of 10% paid annually, par value of…

A: Yield to maturity (YTM) is the discount rate or the rate of return that an investor earns by holding…

Q: The yield to maturity of a $1000 bond with a 6.8 % coupon rate, semiannual coupons, and two years to…

A: BOND:A bond is a long-term fixed-income financial instrument issued by the companies to raise…

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: