Use the following tables to calculate the present value of a $763,000, 6%, 6-year bond that pays $45,780 ($763,000 x 6%) interest annually, if the market rate of interest is 7%.
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- 2. A 10-year, P20,000 bond was issued at a nominal interest rate of 8% with semiannual compounding. Just after the fourth interest payment, the bond will be sold. Assume that an effective interest rate of 10 % % will apply, and calculate the price of the bond.A bond worth P 50 000 has a rate of 12% annually for 15yrs. Considering an interest rate of 12% annually and a face value of P 6000 after 15yrs, find the present value(P) of bond. Answer:A $27,000 bond with interest at 5.3% payable semi-annually and redeemable at par is bought two years before maturity to yield 6.6% compounded semi-annually. Compute the premium or discount and the purchase price, and construct the appropriate bond schedule.
- Assume that a 5-year bond pays interest of $90 once a year (1 payment / year) and will mature for $1,000. Also assume that the yield to maturity on this bond is currently 10 percent. Given this information, determine the duration of this bond. Enter your answer in decimal format, truncated to 2 decimal places. For example, if your answer is 7.1186 years, enter "7.11".A bond is currently selling for $980. This is a _____ bond which will ultimately experience a capital _____. Premium; gain Premium; loss Discount; gain Discount; lossUse 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…
- The market price is $775 for a 15-year bond ($1,000 par value) that pays 9 percent annual interest, but makes interest payments on a semiannual basis (4.5 percent semiannually). What is the bond's yield to maturity?on Assume that you purchase a 30-year stripped bond with a $100,000 face value. The current bond price is $9,937.73 and the yield is 8%. Calculate the interest revenue during the first year of holding the bond. Calculate amounts to nearest dollar, no $. Answer:Show me the steps with explanations to calculate the current interest rate of a bond that is currently priced at $900 and has a FV of $1450 and matures in 5 years.
- A 10%, 25 year bond with a par value of $1,000 pays on an annual basis has a current call feature amounting to 1,300 within 5 years. 1. What is the YTM of the bond if the current price of the bond is $1,100?(Answer with % in two decimal places. Ex. 1.23%) 2. What is the YTC of the bond if the current price of the bond is $1,100?(Answer with % in two decimal places. Ex. 1.23%)Determine the price of a $1.3 million bond issue under each of the following independent assumptions: 1. Maturity 10 years, interest paid annually, stated rate 8%, effective (market) rate 10%. 2. Maturity 10 years, interest paid semiannually, stated rate 8%, effective (market) rate 10%. 3. Maturity 10 years, interest paid semiannually, stated rate 10%, effective (market) rate 8%. 4. Maturity 20 years, interest paid semiannually, stated rate 10%, effective (market) rate 8%. 5. Maturity 20 years, interest paid semiannually, stated rate 10%, effective (market) rate 10%. Note: Use tables, Excel, or a financial calculator. (FV of S1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1.) Complete this question by entering your answers in the tabs below. Required 1 Required 3 Required 2 Required 4 Required 5 Maturity 10 years, interest paid annually, stated rate 8%, effective (market) rate 10%. Note: Round your answer to the nearest whole dollar. Price of bonds Required 2 > NextCalculate the annual interest that you will receive on the described bond. A $1000 Treasury bond with a current yield of 3.2% that is quoted at 106 points. The annual interest is $$ ? Roudn to the nearest cent