What is the present value of a 200,000 (face value) bond issued at coupon rate 10%, due in 3 years, interest payable semi-annually? Assume the effective market interest rate is 12%. A. 200,000 B. 140,992 C. 190,165 D. 49,173

Q: What is your yield to maturity on the bond given the market price of the bonds?

A: Yield To Maturity: It is the total expected rate of return for the bondholder given all the coupon…

Q: What is the implicit (dollar) interest for the first year of an American Century bond currently…

A: in this we have to calculate interest rate considering present value and future value.

Q: 17. Bond X and Bond Y are both issued by the same company. Each of the bonds has a face value of…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Suppose the term structure of annualized interest rate is flat at 5%. Consider the following three…

A: Bonds are the debt obligations of a business on which it requires to pay regular interest to the…

Q: Given the following information, what is the coupon rate of the bond? Years to maturity: 12 Par…

A: Compound = n = Semiannually = 2Time = t = 12 * 2 = 24Face Value = fv = $1000Interest rate = r = 10 /…

Q: $1,000. What is the change in the price of this bond if the market yield to maturity rises to 5.7…

A: The bond price is the present value of all future cash flows, discounted at the bond's yield to…

Q: e present value of

A: Answer:To calculate the present value of a bond, we can use the…

Q: AS10,000 bond issue with a stated rate of interest of 10%, when the market rate of interest is 12%,…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: Suppose an Exxon Corporation bond will pay $1,000 ten years from now. If the going interest rate on…

A: Present value = Future cash flow * (1 + Discount rate)^ Number of years

Q: Suppose an Exxon Corporation bond will pay $1,000 ten years from now. If the going interest rate on…

A: The objective of this question is to find the present value of a bond that will pay $1,000 ten years…

Q: Calculate the selling price of the following 5-year bond issue: e. # bonds Bond rate of interest…

A: The objective of this question is to calculate the selling price of a bond issue. The bond issue…

Q: A bond with 18 years to maturity has an annual interest payment of $30. If the bond sells for its…

A: Let the face value be $1000 therefore price of the bond =$1000 using excel rate function  current…

Q: Assume that you just bought a 5-year bond that pays interest annually of $80 ead year and will…

A: Yield to maturity of bond is rate of return realized on bond when bond is held till maturity and…

Q: A three year bond has par value of $1100, coupon rate of 5% which is paid semiannually, and a price…

A: Compound = Semiannually = 2Time = nper = 3 * 2 = 6Face value = fv = $ 1100Coupon rate = 5 / 2 =…

Q: A bond is sold at a face value of $200 with an annual yield of 3%. How much will the bondholder have…

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…

Q: One-year government bonds yield 4 percent and 2-year government bonds yield 4.5 percent. Assume that…

A: Pure Expectations Theory refers to the concept which tries to determine by predicting what will be…

Q: 1. Consider the following four bonds (assuming semi-annual compounding and the par value of $1,000)…

A: The bond is a debt instrument that is used by companies to raise capital from their investors. The…

Q: How much will the coupon payments be of a 10-year $5,000 bond with a 5% coupon rate and semiannual…

A: When a bond's coupon rate is calculated as a percentage of its face value, it indicates the annual…

Q: An insurance company is analyzing the following three bonds, each with five years to maturity,…

A: In general, lower coupon bonds have a higher duration than a similar higher coupon bond. This is…

Q: Question 1: Two $900 par value bonds are bought to be redeemed at the end of the same period and to…

A: Price of the bond is the present value of the par value of bond plus present value of coupon…

Q: 13. If a bond has a face value of Euro 10,000 and a coupon rate of 10% what would the coupon payment…

A: Face value = Euro 10000 Coupon rate = 10%

Q: A $200,000 bond having a bond rate of 8% payable annually is purchased for $190,500 and kept for 6…

A: Selling price of the bond is the market price for which a bond will be sold off. The selling price…

Q: 0. An investor purchased a 15-year par value bond with semiannual coupons of 50 and a redemption…

A: Given:  Years to maturity = 15 years  Interest rate = 6%  Redemption value = 1,200  Coupon Payment =…

Q: 12 year $1000 bond pays 9% interest. The maturity on a comparable risk bond is 6%. Current price of…

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

Q: $1000 bond pays 6% interest annually with 13 yrs maturity. Purchase price $905 What is the yield to…

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

Q: Suppose an Exxon Corporation bond will pay $1,000 ten years from now. If the going interest rate on…

A: Future Value (FV) of amount to be received = $1,000Number of years (n) = 10Interest rate (r) = 7% or…

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: