National Co. wants to construct a bond portfolio consisting of Bulldogs bonds which has a maturity of 10 years. The said portfolio will hold 4 Bulldogs bonds with a total par value of P8,000. These bonds pay 5% annual coupon. The appropriate discount rate is determined at 6%. What is the bond value of each bond after 5 years?
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National Co. wants to construct a bond portfolio consisting of Bulldogs bonds which has a maturity of 10 years. The said portfolio will hold 4 Bulldogs bonds with a total par value of P8,000. These bonds pay 5% annual coupon. The appropriate discount rate is determined at 6%. What is the
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- You want to form a bond portfolio that pays $100 every six months, for the next year. That is, $100 in 0.5 years and $100 in 1 year. To achieve this goal, you will purchase Bonds A and B, which have a face value of $100 and pay semi-annual coupons. The following information is available: Bond A • Coupon rate (APR): 4.3% Maturity: 1 year Bond B • Coupon rate (APR): 9.5% • Maturity: 1 year Calculate the number of units you must buy of Bond B to achieve your goal. Express your answer as a number with two decimals. E.g. If your answer is 102.544, then enter it as 102.54Assume that the issue will have a coupon rate of 5% with a 15 year maturity. Assume this are semi-annual coupon bonds and each have a face value of $1,000 and the required rates of return for similar bonds in the market is 4.5%. What would be the issuing price of these bonds?An analyst observes a 10- year, 10% semi annual-pay bond. The face amount is £1,000. The analyst believes that the yield to maturity for this bond should be 15% based on this yield estimate, what would be the amount ? what is the method to solve this equation and the solution? Thank you.
- Huion Inc. bonds will mature in 10 years. The bonds have a face value of $1,000 and an 5% coupon rate, paid semiannually. The price of the bonds is $1,000.The bonds are callable in 4 years at a call price of $1100. What is their yield to maturity? What is their yield to call? Please show work and explain.Ruby corporation is planning to buy bond that matures in 10 years. The annual coupon payment is at the rate of 3.5% and has a par value of RM1,000. Assume that the expected rate of return is 5%, calculate the bond valueAnswer the following situation show your Complete Solution. Show the formulas. a. 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 ? b. A bond with Php5,000 face value pays 10 % coupon rate semi - annually . If the maturity of the bond is 2 years , how much is the coupon paid semi - annually ? Find the total coupon during the life of the bond . Answers ( I already provided the answers just please show the solutions with correct formulas): a. Php 50 is the amount of gain. b. Php 500 is the among of semi-annual coupon. Php 2 000 is the total coupon since there are 4 periods in two years.
- An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 10% annual coupon. Bond L matures in 12 years, while Bond S matures in 1 year. Assume that only one more interest payment is to be made on Bond S at its maturity and that 12 more payments are to be made on Bond L. a. What will the value of the Bond L be if the going interest rate is 4%? Round your answer to the nearest cent. $ What will the value of the Bond S be if the going interest rate is 4%? Round your answer to the nearest cent. $ What will the value of the Bond L be if the going interest rate is 9%? Round your answer to the nearest cent. $ What will the value of the Bond S be if the going interest rate is 9%? Round your answer to the nearest cent. $ tA What will the value of the Bond L be if the going interest rate is 14%? Round your answer to the nearest cent. $ What will the value of the Bond S be if the going interest rate is 14%? Round your answer to the nearest cent. $ b. Why does the…National Co. wants to construct a bond portfolio consisting of Bulldogs bonds which has a maturity of 10 years. The said portfolio will hold 4 Bulldogs bonds with a total par value of P8,000. These bonds pay 5% annual coupon. The appropriate discount rate is determined at 6%. What is the bond value of each bond after 5 years? Note: No rounding off present value factors. No rounding off until final answer. Format: XX.XXThe ARA Corporation bonds have a coupon of 14%, pay interest semi-annually, and they will mature in 7 years. Your required rate of return for such an investment is 10% annually. 1. How much should you pay for a $1,000 ARA Corporation bond? Use the bond equation formula.
- An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 6% annual coupon. Bond L matures in 12 years, while Bond S matures in 1 year. Assume that only one more interest payment is to be made on Bond S at its maturity and that 12 more payments are to be made on Bond L. What will the value of the Bond L be if the going interest rate is 10%? Round your answer to the nearest cent.Apple wants to issue bonds with $1,000 face value and 10 years to maturity. The bonds would pay coupons semi-annually. The coupon rate is 4%. The market price of the bonds is $1,070.45. What is the yield to maturity on the bonds?An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 6% annual coupon. Bond L matures in 12 years, while Bond S matures in 1 year. Assume that only one more interest payment is to be made on Bond S at its maturity and that 12 more payments are to be made on Bond L. What will the value of the Bond L be if the going interest rate is 6%? Round your answer to the nearest cent.$ What will the value of the Bond S be if the going interest rate is 6%? Round your answer to the nearest cent.$ What will the value of the Bond L be if the going interest rate is 8%? Round your answer to the nearest cent.$ What will the value of the Bond S be if the going interest rate is 8%? Round your answer to the nearest cent.$ What will the value of the Bond L be if the going interest rate is 13%? Round your answer to the nearest cent.$ What will the value of the Bond S be if the going interest rate is 13%? Round your answer to the nearest cent.$ Why does the longer-term…