If a $1,000 par value bond pays a 4% coupon each year, paid semi-annually, how much would each semiannual payment be? A. $50 B. $25 C. $40 D. $20
Q: The market price is $800 a 17-year bond ($1,000 par value) that pays 9 percent annual interest, but…
A: In the given question we need to compute the bond's yield to maturity using following details :…
Q: A $1,000 principal value bond costs $35 in quarterly interest and matures in ten years. How much…
A: 71c. $1,115.57
Q: A $3,500,000 issue of a 30-year bond, redeemable at par, offers 9.00% coupons payable semi-annually.…
A: The question is based on the concept of Financial Accounting.
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: A $2400, 8.9% bond with semi-annual coupons redeemable at par in 8 years was purchased at 95.6.…
A: Because it is assumed that the book value trends in a straight line from the start value to the end…
Q: A $8500 bond bearing interest at 4.3% payable semi-annually is due in 7 years. Money is worth 5.9%…
A: Par value = $8500 Coupon rate = 4.3% Frequency of payment = Semi annual
Q: A 15-year bond with 9% coupons paid semi-annually will be redeemed at P 6,300. The bond is bought to…
A: Given: Years = 15 Coupon = 9% Redeemable value = P6,300 Yield = 7.5% Purchase price = P6,750
Q: Find the amount of the semi-annual coupon for a 110,000 bond which pays 4.5% convertible…
A: Bond interest is paid by the company semi-annually at the coupon rate affixed to it.
Q: A 1,000 bond with annual coupon is redeemable at par at the end of 10 years at a purchase price of…
A: A Bond refers to an instrument that represents the loan being made by the investor to the company…
Q: A 20,000, 1 ½% bonds with annually coupons are priced to yield 4 ½% converted annually. If it is…
A: Face value = 20,000 Coupon rate = 1.50% Yield rate = 4.50% Redemption to face value ratio = 104%…
Q: 1. What is the price of a $1,000 bond with a coupon payment of $50 annually if the bond matures in 2…
A: The price of the bond is equal to the present value of all the future coupon payments from the bond…
Q: (Computation of Bond Prices) What would you pay for a $100,000 debenture bond that matures in 15…
A: A bond is issued by the company to raise capital at a fixed interest rate on loan term agreement…
Q: A $7,000 bond that carries a 4.00% coupon rate payable semi-annually is purchased 8 years before…
A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…
Q: What is the coupon payment of a 15 -year $10,000 bond with a 9 % coupon rate with semiannual…
A: Given details are : Face value of bonds =$10000 Time period = 15 years Coupon rate = 9% Coupon…
Q: How much will the coupon payments be of a 15-year $500 bond with a 9% coupon rate and quarterly…
A: To calculate the coupon payment amount we will use the below formula Coupon amount = FV*(C/M)…
Q: A $3,000,000 issue of a 30-year bond, redeemable at par, offers 7.00% coupons payable semi-annually.…
A: Bond value is the present value of all the expected cash flow a bond will generate if held till…
Q: You have just purchased a 15-year, P1,000 par value bond. The coupon rate on this bond is nine…
A: The bond price can be calculated as the present value of bond cash flows.
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: D&G Enterprises issues bonds with a $1,000 face value that make coupon payments of $30 every 3…
A: In the given problem we require to calculate the coupon rate of bond from following given details:…
Q: A bondholder owns 15-year government bonds with a $5 million face value and a 6 percent coupon that…
A: Correct answer is option (c) -27,571.
Q: a $1,000 face value bond matures in 30 years and pays semi-annual coupon payments based on an annual…
A: A bond is a debt instrument issued by companies or the government to raise funds from the public and…
Q: How much will the coupon payments be of a 10-year $1,000 bond with a 7% coupon rate and quarterly…
A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…
Q: Fingen's 16-year, $1,000 par value bonds pay 11 percent interest annually. The market price of the…
A: Yield to maturity refers to the internal rate of return which is earned by the investor who makes…
Q: Piermont Clothing's current bond price is $1,060. The coupon rate 7%, coupons are paid semi-…
A: Using excel RATE function
Q: If a $ 3.000, 12% semiannual bond is purchased for $3,100 and sold 5 years later for $2.900. What…
A: Purchase price (P0) = $3100 Selling price (P1) = $2900 n = 5 years = 20 quarters Total coupons…
Q: Find the effective rate of the compound interest rate or investment. (Round your answer to two…
A: A = $80,000 P = $44035 t = 8 years
Q: You purchase 6,500 bonds with a par value of $1,000 for $981 each. The bonds have a coupon rate of…
A:
Q: Assume a $1000 bond issue at the rate of 10% for 15 years. a)What is the interest payment for this…
A: Bond carry annual payment which are paid during the life of bonds.
Q: If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year is A.…
A: In the given question we are required to calculate the coupon payment every year on following bond:…
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: A $6,500,000 issue of a 30-year bond, redeemable at par, offers 9.50% coupons payable semi-annually.…
A: Face value = $6,500,000 Maturtiy =30 years ; But bond purchased 25 years before maturity So, time…
Q: P4-10. A $1,000 par value bond pays a coupon rate of 8.2%. The bond makes semiannual payments and in…
A: Since you have asked multiple questions, we will solve the first question for you. Please ask…
Q: A $85,000, 8.50% bond redeemable at par, with annual coupon payments, is purchased 8 years before…
A: The bond's value or the price can be computed as the sum of the bond's coupons and principal after…
Q: A $85,000 bond with a coupon rate of 7.50%, payable semi-annually, is redeemable in 11.5 years. What…
A: Purchase price of bonds will be present value of maturity value and present value of interest…
Q: A $10,000 bond (face value) with 76 interest payable quarterly is purchased for $7000. If the bond…
A: The return (whether it is a loss or gain) on a investment for a particular period of time span is…
Q: Company 'A' issues a bond at $1,000 and offers a payment of $50/year every year for 3 years. If the…
A: A bond is a finanical tradeable security issued by large business entities and government bodies.…
Q: A $85,000, 8.50% bond redeemable at par, with annual coupon payments, is purchased 8 years before…
A: Bond value is the value of a bond measured on the basis of the present value of all the expected…
Q: A $10,000 bond can be redeemed for $10,450 in 10 years. It pays 20 semi-annual coupons at j2 = 7%.…
A: The book value is calculated below,
Q: A $6,000 bond that carries a 3.50% coupon rate payable semi-annually is purchased 4 years before…
A: The corporation and government can raise finance by issuing bonds. The borrower i.e bond issuer is…
Q: Suppose a 15- year corporate bond has a 10% coupon rate and a $1,000 par value. Coupons are paid…
A: A Bond refers to an instrument that represents the loan being made by the investor to the company…
Q: How much will the coupon payments be of a 10-year $1,000 bond with a 9.5% coupor rate and quarterly…
A: Par value = $1000 Coupon rate = 9.5% Number of coupon payment per year = 4
Q: One hundred $1,000 bonds having a bond rate of 8% per year payabie quarterly are purchased for…
A: The following formula will be used:
Q: P1,000 face-value bond with coupon rate of 8% paying interest semi-annual arket price of P1,050.…
A: Interest on bond will be calculated on face value. Interest amount =face value*interest rate…
Q: A bond: pay $75 each year in interest, and a $1,000 payment at maturity. The $1,000 is called? A)…
A: The answer is mentioned on the next sheet.
Q: A ten-year 3% bond with semiannual coupons is purchased to yield 6% compounded semiannually. The par…
A: Par value (FV) = 1000 Coupon rate = 3% Semi annual coupon amount (C) = 1000*0.03/2 = 15 Years to…
Q: A 7.5% percent annual coupon bond with 20 years to maturity, selling for 104 percent of par. The…
A: Concept: The after-tax cost rate of debt is defined as the interest paid on debt based on less…
Step by step
Solved in 3 steps with 1 images
- How much will the coupon payments be of a 10-year $5,000 bond with a 5% coupon rate and semiannual payments? A. $500 OB. $250 OC. $125 OD. $4271. A $1,000 principal value bond costs $35 in quarterly interest and matures in ten years. How much should you be able to pay for this bond if your nominal annual necessary rate of return is 12% with quarterly compounding? a. $ 941.36b. $1,051.25c. $1,115.57d. $1,391.00e. $ 825.4971. A $1,000 principal value bond costs $35 in quarterly interest and matures in ten years. How much should you be able to pay for this bond if your nominal annual necessary rate of return is 12% with quarterly compounding?a. $ 941.36b. $1,051.25c. $1,115.57d. $1,391.00e. $ 825.49
- What is the present value of a $500,000 12-year Bond with annual interest payments of $40,000 (contract rate of 8%) assuming an effective rate of 10%? You must show work to receive credit for this problem. Paragraph Lato (Recom... v 19px... ✓ T BI U A V => DC + v ...How much will the coupon payments be of a 25 year $5,000 bond with a 8% coupon rate and semi annual payments? A. $800 B. $400 C. $200 D. $67How much will the coupon payments be of a 10-year $10,000 bond with a 6.5% coupon rate and semiannual payments? ..... A. $108 В. $325 C. $1,300 D. $650
- How much will the coupon payments be of a 20 -year $500 bond with a 10% coupon rate and quarterly payments? A. $12.50 B. $4.17 C. $25.00 D. $50.00What is the last payment amount of a bond with 1 payment per years, Coupon Rate 8.50% and principal and $514,000 principal and matures in 10 years? Answer with two decimal digits accuracy. Example: 631062.50A bond has a face value of 2,000 $ is redeemable in 8 years , and pays interest of 200 $ at the end of each of the 8 years. what should be the maximum purchase price in $ for this bond if MARR = 8 % per year ? Select one: O a. 2,230 O b. 1,850 O c. 2,000 O d. 1,670 O e. 1,487
- A $9,000 bond matures in 10 years and pays 2 percent interest twice a year. If the bond sold for $7,000, what is the annual actual investment rate? a. IRR = 7.15%% b. IRR = 5.10% c. IRR = 3.58% d. IRR = 6.23%Q4. A long term bond with a face value of $10,000 has a bond interest rate of 6% per year pay: quarterly. What are the amount of the interest payments? (a) $160 (b) $150 (c) $170 (d) $155 (e) your answer (... ......)64. You plan to buy a $1,000 face value 10-year bond that earns $60 in interest every six months. How much should you be able to pay for this bond if your nominal annual necessary rate of return is 10% with semiannual compounding? a. $ 826.31b. $1,086.15c. $ 957.50d. $1,431.49e. $1,124.62