The Mobile Motors Inc. bond has 12 years remaining to maturity. Interest is paid annually, it has a face value of $2,000, the coupon interest rate is 7% and an 11% yield to maturity. Determine the current market price of the bond.
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- The Mobile Motors Inc. bond has 12 years remaining to maturity. Interest is paid annually, it has a face value of $2,000, the coupon interest rate is 7% and an 11% yield to maturity. Determine the current market price of the bond.
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- The current interest rate on a 10-year coupon bond (with face value= $1000 and annual coupon rate= 3.25%) is 1.31%. The buyer of this bond will receive $_____ payment from the bond issuer every year before maturity while holding the bond.A 10-year bond with a face value of $1,000 has a coupon rate of 9.0%, with semiannual payments. a. What is the coupon payment for this bond? b. Enter the cash flows for the bond on a timeline. a. What is the coupon payment for this bond? The coupon payment for this bond is $ every six months. (Round to the nearest cent.)You intend to purchase a 2-year bond. The bond has a $1,500 face value and coupon payments are quarterly. Coupon rate of this bond is 18%. Market interest rate is 4 percent, what is the duration of the bond (in terms of quarters)? (Answer is rounded)
- A bond has the following features: Coupon rate of interest (paid annually): 6 percent Principal: $1,000 Term to maturity: 12 years What will the holder receive when the bond matures? Principal or All coupon payments? If the current rate of interest on comparable debt is 9 percent, what should be the price of this bond? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. $ Would you expect the firm to call this bond? Why? -Yes or No, since the bond is selling for a discount or premium? If the bond has a sinking fund that requires the firm to set aside annually with a trustee sufficient funds to retire the entire issue at maturity, how much must the firm remit each year for twelve years if the funds earn 9 percent annually and there is $120 million outstanding? Use Appendix C to answer the question. Round your answer to the nearest dollar. $Carries Clothes, Inc. has a five -year bond outstanding that pays $60 annually. The face value of each bond is $1,000, and the bond sells for $890. Use semi- annual interest payments if it applies. What is the bond’s coupon rate? What is the current yield? What is the yield to maturity?A bond is priced at $1,100, has 10 years remaining until maturity, and has a 10% coupon, paid semiannually. What is the amount of the next interest payment?
- The face value of the bond is $10,000 with annual coupon payment. The maturity period is 6 years with the duration of 5.37 years and YTM of 14%. Determine the current market price of the bond. Answer Choices: a. The current market price of the bond is $10,000.00 b. The current market price of the bond is $6,315.26 c. The current market price of the bond is $8,051.02 d. The current market price of the bond is $7,448.90A 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.As with most bonds, consider a bond with a iace value of $1,000. The bond's maturity is 21 years, the coupon rate is 122% paid annually, and the discount rate is 4%. What should be the estimated value of this bond in one year? Enter your answer in terms of dollars, rounded to the nearest cent.
- A bond has just been issued. The bond will mature in 3 years. The bond’s annual coupon rate is 12% and the face value of the bond is $1,000. The bond’s (annual) yield to maturity is 6%. Compute the bond’s duration if coupons are paid quarterly: Using the VBA duration function.A $1,000 face value bond is currently quoted at 100.8. The bond pays semiannual payments of $22.50 each and matures in six years. What is the coupon rate?a coproration bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 8%. The bonds have a yield to maturity of 9%. What is the current market price of these bonds?