You have a 7 - year bond, with $1,000 face value, 5.50% coupon rate, semiannual coupon payments, and yield to maturity of 6.50 %. What is its price? - $94.45 - $1, 138.87 - $674.37 - $944.47

Q: 2. A $1000, 15-year bond, callable at $1100 after 10 years has a 7% coupon rate and makes semiannual…

A: Yield to maturity can be calculated by following function in excel=RATE (nper, pmt, pv, [fv],…

Q: Suppose the YTM is 0.072 for a 20-year $1000 bond with a 7% coupon rate and annual coupon payments.…

A: To calculate the bond price we will use the below formula   Bond's price =…

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 with face value P10,000 has a semiannual coupon rate of 6%. With a time to maturity of 3…

A: Current yield:  The total revenue of a bond is divided by its market price to get the bond's current…

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: A firm's bonds have a maturity of 12 years with a $1,000 face value, have an 11% semiannual coupon,…

A: YTM represents the cost of capital of the business for raising debt capital from the bondholders.…

Q: What is the yield to maturity of a bond with the following characteristics; all have a maturity of…

A: Face value (F) = 10000 Coupon (C) = (4% of 10000) / 2 = 200 n = 10 years = 20 semiannual periods r =…

Q: What would you expect to pay for a 5% coupon, 12-year maturity, $1,000 face value bond that has a…

A: Bond Price = C∗1−(1+r)-n/r+F/(1+r)nC= Coupon rate = 50r=Yield = 4%n=Years to maturity = 12F=Face…

Q: Please show your work. What is the value of a bond with a par value of $1,000, a coupon of $120…

A: Coupon payment (C) = $120 (semi-annually)Face value (F) = $1,000Yield to Maturity (YTM) = 7.02%…

Q: Two bonds, each with a face value of $16000, are redeemable at par in t-years and priced to yield y2…

A: Value of a bond is the price of the bond. It is the present value of future cash flows occurring…

Q: Suppose that you purchased a Baa rated $ 1000 annual coupon bond with a 5% coupon rate and a 7-year…

A:

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

A: Price of the bond is the present value of future cashflows

Q: Evaluate the effect of gearing on cost of capital and firm value taking into consideration the…

A: Answer

Q: What is the price (present value) of a 2 year coupon bond with a face value of $4,500 and a coupon…

A: Face value = $4,500Coupon rate = 2%Years to maturity = 2 yearsYTM = 3%

Q: You are given 1-year forward rates fjo.1) = 3% and f1,2) = 8%. What do these rates imply the market…

A: Forward rate: It refers to the predetermined rates of interest that are entered into through an…

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: 1. A bond has a $1,000 par value, 12 years to maturity, and an 8% coupon rate (annual coupon…

A: Par value = $1000Coupon rate = 8%Time to maturity = 12 yearsPrice of bond = $980To find: YTM of the…

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: A firm is going to issue a 15-year bond with semi-annual coupon payments. The face value is $1,000…

A: Variables in the question:Face value=$1000Coupon rate=6% per year (semi-annual payment)N=15…

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: How much would you be willing to pay for a $1,000 par value, 10-year bond with a 12.00% coupon…

A: Compound = Semiannually = 2Face Value = fv = $1000Time = t = 10 * 2 = 20Coupon Rate = c = 12 / 2 =…

Q: What price would you pay for a 5-year,

A: solution YTM for BB Bond = (((F-P)/n)+C) / (F+P)/2 Face value = $1000, Price = 859.88, No. of…

Q: What would be the one-year Holding Period Return for a 7-year, 8% semi-annual coupon bond if the…

A: A bond  is a kind of debt security issued by the government and private companies for raising funds…

Q: The market price of a three-year 4% annual-coupon bond is 946.54. If the YTM remains unchanged after…

A: Return from Bond can be denoted by Bond Yield percentage. Bond yield percentage is the rate of…

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: Use the following information to answer question 21. Consider a 4% annual coupon bond with a face…

A: Current price of bond is the price which can be paid for purchase of the bond. It is also called…

Q: You have a 7 - year bond, with $1,000 face value, 5.50% coupon rate, semiannual coupon payments, and…

A: The objective of the question is to calculate the price of a bond given its face value, coupon rate,…

Q: the coupons at a rate of 4.95 percent. If you s yield? (Do not round intermediate calculatio $…

A: Future value refers to the concept of determining the present worth of an asset or investment at…

Q: A firm's bonds have a maturity of 12 years with a $1,000 face value, have an 11% semiannual coupon,…

A: A bond is a kind of debt security issued by the government and private companies for raising funds…

Q: I want the Correct answer. What is Correct option

A:

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 price of a 4.2 percent coupon bond with 5 years left to maturity and a market interest…

A: Coupon rate = c = 4.2%Time = t = 5 YearsInterest rate = r = 2.70%Face Value = fv = $1000

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: What would you pay for a bond that pays an annual coupon of $45, has a face value of $1,000, matures…

A: Face value of bond (FV) = $1000 Annual coupon amount (C) = $45 Years to maturity (n) = 11 Years…

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: uppose you want to purchase a bond with a $1,000 par value maturing in 4 years with an 8% annual…

A: The price of bond shall be present value of all coupon and present value of face value Bond price…

Q: Consider a 19-year, 3.6% coupon rate, $1,000 face value bond that pays annual coupons. If the bond's…

A: Using excel PV function

Q: You hold a 14 year bond that is callable in 4 years. The call premium is one semi-annual coupon…

A: Yield to call (YTC) on a bond is the rate of return earned on a bond if it is called or redeemed by…

Q: Calculate the redemption a. 1089 b. 1431 C. 1203 d. 1192 - 1347

A: Price of bond is sum of present value of coupon payment plus present value of redemption value.