A bond promises to pay the bondholder equal payments of php 6000.00 in six month interval for 30 years. if the face amount is php 450000. What is the fair price of the bond ? Assume that market rate is 2% compounded annually?
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A bond promises to pay the bondholder equal payments of php 6000.00 in six month interval for 30 years. if the face amount is php 450000. What is the fair price of the bond ? Assume that market rate is 2% compounded annually?
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- A bond promises to pay the bondholder equal payments of P6,000 in six-month intervals for 30 years. If the face amount is P450,000, what is the fair price of the bond? Assume that the market rate is 2% compounded annually.Which of the following statements is true? You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months. If your nominal annual required rate of return is 10 percent with semiannual compounding, how much should you be willing to pay for this bond? Select one:a bond pays P340 interest per year and has a face value of P8,328 at the end of 9 years, when it has to be redeemed. If the interest of the bond is 0.19. What is the current value of the bond?
- You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months. If your nominal annual required rate of return is 10 percent with semiannual compounding, how much should you be willing to pay for this bond?A $5,000 face value strip bond has 12 years remaining until maturity. If the market rate of return is 4.00% compounded semiannually, what is the fair market value of the bond? Your Answer: AnswerConsider a fixed-payment security that pays P100 at the end of every year for the three years. If the rate of discount is 10 percent, the present value of the bond is
- The face value of a bond is $3000.00. The firm offering the bond pays 1% of the sales price to the selling agency and will pay $300.00 to the buyer every year. The bond matures in ten years and the firm pays $3000.00 to the buyer at the end of the tenth year. What is the effective rate of return on this bond to the firm offering it?You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months. If your nominal annual required rate of return is 10 percent with semiannual compounding, how much should you be willing to pay for this bond? Select one:You purchase a KD 3000 face value bond with 5 years remaining in its maturity period. The bond has current yield of 15% and its payment are KD 45 made every month. If compounding is annually, calculate the following: 1. The purchase value of the bond. 2. The yield to maturity. (Show trial and error with interpolation)
- A bond with face value of Php 1,000 is selling at Php 950. The maturity of the bond is one year. How much is its gain?Consider a bond with a face value of $1,000. The coupon is paid semiannually and the market interest rate (effective annual interest rate) is 8 percent. How much would you pay for the bond if a. the coupon rate is 6 percent and the remaining time to maturity is 10 years?A bond is currently selling for $1040. It pays the amounts listed in the picture at the ends of the next six years. The yield of the bond is the interest rate that would make the NPV of the bond’s payments equal to the bond’s price. Use Excel’s Goal Seek tool to find the yield of the bond.