The market price of a semi-annual pay bond is $965.94. It has 10.00 years to maturity and a coupon rate of 5.00%. Par value is $1,000. What is the effective annual yield? Submit

Q: What is the value of a bond that matures in 12 years, makes an annual coupon payment of $50, and has…

A: The value of the bond is the current price of the bond. It is the present value of the cash flows…

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 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: A bond had a $1000 par value, 9 years to maturity, an 11% annual coupon, and sells for $1150. What…

A: Bonds refer to instruments used by the issuing company to raise debt capital from non-traditional…

Q: Assume that a 15 year $1,000 bond pays annual coupon interest amounts of $117 per year is currently…

A: Yield to maturity, When the holder holds the bond until maturity, the total return earned on the…

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: Face value of the Bond = $1000, Annual Coupon Payment = 10%, YTM = 12%, Maturity = 10 %3D years,…

A: Realized  Compound yield of the bond: It is the earnings  which is generated by investors  when all…

Q: What is the value of a bond that has a par value of $1,000, a coupon of $120 (annually), and matures…

A: face value = fv = $1000 Coupon = c = $120 Time = t = 10 Years Required rate of return = r = 0.0702…

Q: Current 1-yr interest rate is 12%. Forward rate during 2nd year is 9% and is expected to rise by…

A: Yield to maturity: It is the rate that an investor earns when security is kept till maturity.

Q: A bond with 15 years to maturity, a face value of $1000, pays a coupon rate of 14% APR compounded…

A: Solution:- Yield-to-maturity means the rate of return earned by bond holder, if the bond is hold…

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: what is its yield-to-maturity?

A: Bond valuation is a method of finding the fair value of the bond. Fair value means the present…

Q: A zero coupon bond is selling for $575.04. The bond matures in 13 years and has a afce value of…

A: A zero coupon bond is usually offered at a discount price. As the name suggests, it does not pay any…

Q: A 10-year bond with a face value of $10,000 pays a 5% annual coupon and has a yield (annual interest…

A: Solution:- Bond price means the price at which a bond is trading in the market. It is the summation…

Q: Given the conditions: A semi-annual coupon bond for a 7.5% coupon rate with a par value of $1,000,…

A: The present value of coupon and principal can be calculated with the help of present value factors

Q: The yield to maturity of a $ 1 000 bond with a 7.2 % coupon​ rate, semi-annual​ coupons, and two…

A: The objective of the question is to calculate the price of a bond given its yield to maturity,…

Q: The price of a 20-year bond that has a coupon rate of 8% is $1100.The bond pays semiannual coupon.…

A: Calculate the semiannual coupon payment:Coupon rate = 8%Since payments are semiannual, divide the…

Q: Calculate the current market price of the bond

A: FV = 1000 coupon = 13% semiannual = 13/2% each period = 1000*13/2 = 65 each period time n = 10 =…

Q: The market price of a 10-year bond is 984$, its yield to maturity is 8% per year, and annual coupon…

A: Bonds are the debt security which is offered or issued by the corporates or the governments to…

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: Consider a bond with a face value of $1000. The coupon payment is made semiannually and the yield on…

A: Price of bond = [ PVAIF (Yield rate , periods) * Interest ] + [ PVAF (Yield rate , Period) *…

Q: You are considering a 10-year, $1,000 par value bond. Its coupon rate is 9%,and interest is paid…

A: N = 20 semi annual periods Par Value = 1000 Coupon = Coupon Rate / 2 * Par Value = 9%/2* 1000 = 45…

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: 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: 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: Given the following information, calculate the expected yield and promised yield of a bond with a…

A: The bond is a debt instrument that allows companies to raise capital from investors. The feature of…

Q: You purchase a bond with a coupon rate of 7.6 percent, a par value of $1,000, and a clean price of…

A: Accrued interest on a bond is the interest earned from the last coupon payment. Clean price of the…

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: Consider a bond, paying 8% semiannual coupons, with face value of US$1,000, maturing in 15 years and…

A: Par Value  $       1,000Coupon rate8.00%Years to maturity15Selling price of bonds$       724.7

Q: Calculate the present value of a 15-year bond having the following parameters: face value: PLN 500;…

A: As we have annuities (coupon payments) and that too are compounded quarterly,  it becomes quite…

Q: A 6-year bond pays interest of $80 annually and sells for $975. What is its coupon rate, current…

A: Coupon rate: Coupon rate is the rate at which a bond is paying interest at a regular interval.…

Q: If a $1,000 bond with a 4 percent coupon (paid annually) and a maturity date of ten years is selling…

A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…

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: A 5.25 percent coupon bond with 14 years left to maturity can be called in four years. The call…

A: Yield to call of a bond means the return of the bond until its call. In this case, the period of…

Q: What should the current market price be for a bond with a $1,000 face value, a 10% coupon rate paid…

A: I/Y = rate = 12% NPER = Number of years = 20 PMT = Coupon = -1000*10% = -100 FV = Future value or…

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: Calculate the present value of a 15-year bond having the following parameters: face value: PLN 500;…

A: Present value of bonds refers to the intrinsic price of the bonds. The intrinsic value helps in…

Q: Calculate the yield to maturity (i.e., YTM) for the following bond.  The bond matures in 28 years,…

A: Data given: Par value of the bond = $1000 N= 28 years Coupon rate = 8.0% with semi-annual payments…

Q: A bond with a face value of P1,000 that will matures in 10 years. It pays a P50 coupon every year,…

A: Face Value = 1000 N = 10  Coupon = 50 Call period = 5 years Call Price = 1200 Current Yield on bond…

Q: What is the value of a 15-year, $1000 par value, 1.5% coupon bond with annual payment if the…

A: Bond valuation is a way to determine the theoretical fair value (or par value) of a particular bond.…

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: