What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $950, if it pays 8% fixed interest for the duration of the bond? yield = [?] %

Q: A bond pays semi-annual coupons of $50.  What is the Current Yield of a bond selling for $900 with a…

A: Information Provided: Par value = $1000 Price = $900 Semi-Annual Coupon payment = $50

Q: What must be the price of a $2,000 bond with a 5.8% coupon rate, annual coupons, and 30 years to…

A: A financial instrument that does not affect the ownership of the common shareholders or management…

Q: 1. What is the yield to maturity of a corporate bond with a 3-year maturity, 5 percent coupon…

A: A coupon bond, alternatively termed a fixed-income or bearer bond, represents a debt security issued…

Q: If you invest in a $1,000 bond and pay a price of $832, and the coupon rate on the bond is 4%, what…

A: Given information: Par value of bond is $1,000 Current price of bond is $832 Coupon rate is 4%

Q: alculate the annual interest (in $) and current yield (as a %) of the bond. (Round your percentage…

A: The question is based on the concept of Financial Management. Annual interest is calculated on the…

Q: A $1,000 par value bond that pays interest annually just paid $85.90 in interest. What is the coupon…

A: In the above question we require to compute the coupon rate on a bond where, Par value of bond =…

Q: what is the yield on 5,000, 12% Acts bond priced at 95 plus 20 comission

A: Introduction :- A bond is a financial instrument in which the issuer (debtor) owes the holder…

Q: What must be the price of a $10,000 bond with a 6.3% coupon rate, semiannual coupons, and ten years…

A: Price of the bond refers to the present value of all the intermediate earnings and the maturity…

Q: What is the coupon rate for the bond? Assume semi-annual payments Answer as a percent Bond Coupon…

A: Coupon rate refers to the rate of interest that is being charged on the par value of the bonds…

Q: –What is the price of a 2.25 % annual coupon bond, with a $1,000 face value, which matures in 3…

A: Bond price refers to the current market value or cost at which a bond can be bought or sold. It is…

Q: What is the price of a zero coupon bond with a $1,000 face value, 10-year maturity, and annual…

A: The price of a zero coupon bond can be calculated using the formula:P = FV(1 + r)^nWhere:(P) is the…

Q: What is the yield to maturity on Fox Inc.'s bonds if its after-tax cost of debt is 9% and its tax…

A: After Tax Cost of Debt is calculated as Yield to maturity minus tax shield.

Q: What is the fair market value of a bond with the following features: (1) par value of $1000, (2)…

A: Price of bond is present value of coupon payment +Present value of par value of bonds taken on yield…

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: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $950,…

A: given information   face value = $1000 discount price = 950  interest rate = 6%

Q: Calculate the annual interest (in $) and current yield (as a %) of the bond. (Round your percentage…

A: Current yield of a bond is the annual coupon expressed as a percentage of its price. Current…

Q: Assume you make the following investments: • A $10,000 investment in a 10-year T-bond that yields…

A: The difference between the interest rate of the corporate bond and the risk free rate is term as the…

Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $875,…

A: Yield is the percentage representation that shows interest earned by the company n the total…

Q: (a) What are the current yield on a three-year bond whose face value is $1000 with a coupon rate of…

A: Bonds are the financial instruments that are the debt instruments of a company and are used for…

Q: P: A 8% coupon, 30-year maturity bond with par value of S1,000. Assume annual interest rate is 8%…

A: Bartleby Honor Code states that when multiple questions are posted, the subject expert should solve…

Q: What must be the price of a $1,000 bond with a 5.8% coupon rate, annual coupons, and 15 years to…

A: Price / Present Value can be calculated using PV function in excelPV (rate, nper, pmt, [Fv],…

Q: Lennar Corporation's one-year bond has a yield equal to 6.6%. Suppose that the maturity risk premium…

A: Given the following: One-year bond yield = 6.6%  Maturity risk premium = (t-1)*0.15%    The maturity…

Q: What must be the price of a $5,000 bond with a 6.6% coupon rate, semiannual coupons, and ten years…

A: Price / Present Value can be calculated using PV function in excelPV (rate, nper, pmt, [Fv],…

Q: 3. A 10-year $2000 bond pays semi-annual coupons at j;= 6%. What is the purchase price if the bond…

A: The bond can be defined as the debt units that are introduced in the financial market by the…

Q: You are eyeing an investment in a corporate bond which has a YTM of 13.54%, and a stated rate of…

A: Formula:Bond Price=∑t−1n​ 𝐶/(1+𝑟)^𝑡+𝐹/(1+𝑟)^𝑛 Variables:• 𝐶 = Annual Coupon Payment = Face…

Q: What is the fair market value of a bond with the following features: (1) par value of $1000, (2)…

A: An ordinary annuity is a stream of equal payments distributed over a predetermined amount of time at…

Q: Firm A’s bond coupon rate = 10.20%, a yield to maturity = 10.55%, market price = $850. The annual…

A: the question is based on calculation of annual coupon payment in bond investment. The market price…

Q: A coupon bond has the following characteristics: Purchase Price= 9800$ Annual Bond Rate= 7%…

A: Introduction: Interest amount: Interest amount is charged on the principal amount. Interest is…

Q: a bond is selling for 850 and pays coupon of 0.09 what is the current yiels

A: Current yield = Annual Coupon / Bond Price

Q: What is the coupon payment for a bond with a face value of $1000 that currently sells for $1250 if…

A: Coupon payment Coupon payment The interest paid for the bond is known as a coupon payment. The…