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 is the present value of the coupon payments? What is the present value of the face value of the…

A: Bond: It is a debt instrument issued by the bond issuer for raising capital from the investors. The…

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: A 10 – year bond with face amount 10,000 that redeems for 12,000 and that pays semiannual coupons…

A: Answer- Option (A) The bond price is purchased at 9226.

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: 7) The 10-year Treasury bond has a YTM = 4.726%. The price is $9,484.38 and the face value is…

A: We should first determine the semiannual coupon and then compute the coupon rate.

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 is the yield on a 4-year BBB-rated corporates bond with a liquidity premium of 0.5%?

A: A bond's yield is the rate of return received from the bond's coupon payments. It can be calculated…

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: Finance What is the YTM of a four-year semi-annual pay bond with a par value of $1,000 and a 4…

A: YTM is the yield to maturity is rate of return realized if the bond is held till the maturity of…

Q: 1. What would be the selling price of a 10-year bond with a face value of P100,000,interest at 20%…

A: Bond Valuation: It refers to the process of computing the fair or theoretical bond price. It helps…

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: 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: 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: 6. A company just issued a 15-year bond that has a face value of $1,000 and a coupon rate of 10%…

A: The price of a bond consists present value of all future coupon payments and the redemption…

Q: 1. Compute for a present value of the bond with details below: FV: P500,000 Coupon rate: 4.5%…

A: Computation of Present Value of Bond with 6 years   Year Interest  PVF@4.5% Present Value 1…

Q: Suppose a 8-year bond has a face value of $1,000 and has a semi-annual YTM of 0.063. It pays…

A: Coupon bonds are fixed-income securities that pay periodic interest, known as coupons, to…

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: If 10-year T-bonds have a yield of 6.2%, 10-year corporate bonds yield 9.2%, the maturity risk…

A: An additional amount an investor expects when an investor invests in risky securities is term as the…

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: 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: 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: Assume you have a bond with a semi-annual interest payment of $50, a par value of $1 comma 000, and…

A: The current yield of a bond is a measure of the annual income the bond generates in relation to its…

Q: Bond Z pays $98 annual interest and has a market value of $870. It has five years to maturity.…

A: Solution Given Annual interest 98 Market value 870 Years to maturity 5 Par…

Q: 2. Above what coupon rate could you profitably buy a $100,000 face-value 10-year Treasury bond if…

A: A Bond is an instrument that represents the loan that is made by the investor to the company and…

Q: 15. Bonds with a face value of $100,000 that are issued for $99,400 have a stated interest rate a.…

A: Bonds means an instrument acknowledging as debt due from one party to another party.

Q: Consider a 7-year 7% corporate bond with a yield-to-maturity of 5.00%. Currently, 5- and 7-year…

A: Corporate bonds are riskier than government bonds and hence the yield on the corporate bond is much…

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: A coupon bond pays this amount every 6 months;   $             30.00 bgs         for the number of…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

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 bond that matures in one year has a $500 face value and a $60 coupon. What is the price of the…

A: A key idea in finance is the time value of money, which takes into account how money's value changes…

Q: corporate issue will be brought to the market at a spread of T+ 68bp. Explain what this means and…

A: Corporate bonds are issued with some benchmark interest rate and some addition to some benchmark…

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: If the nominal rate of return on a corporate bond is 15%, the pure rate is 4%, and the risk premium…

A: Inflation refers to rise in prices of goods and services over a period of time. Inflation measures…

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…

Q: What is the price of a 17-year bond paying 7.7 % annual coupons with a face (par) value of $1,000 if…

A: The present value of the bond is used to compute the price of the bond.   Where, Time Period = 17…