1. What would be the selling price of a 10-year bond with a face value of P100,000,interest at 20% which is paid quarterly if an investor desires to earn a 16% nominali nterest on P100,000 worth of these bonds? P119,793 P82,836 P94,287 P112,835
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1. What would be the selling price of a 10-year bond with a face value of P100,000,interest at 20% which is paid quarterly if an investor desires to earn a 16% nominali nterest on P100,000 worth of these bonds?
P119,793
P82,836
P94,287
P112,835
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- 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 would be the selling price of a 10-year bond with a face value of P100.000, interest at 20% which is paid quarterly if an investor desires to earn a 16% nominal interest on P100,000 worth of these bonds? a. P82 836 b. P119.793 c. P112 835 d. P94,287Q1) He Omani Company has two bond issues outstanding. Both bonds pay OMR (100) annual interest plus OMR (1000) face value at maturity. Bond L has a maturity of 15 years, sell after three years issued, and Bond S has a maturity of 1 year. A. What will be the value of each of these bonds when the going rate of market interest is 12%? B. what can you conclude from the results of the above questions regarding the bond risks?
- 2. A bond was issued at a par value of OMR100 and is due to mature in five years. It pays 8% interest per annum and is currently trading at OMR105. What is the face value of the bond? A. ΟMR1 05 В. ОMR140 C. OMR 108 D. OMR100What is the value of a Northern Pacific bond with an 11 percent coupon, maturing in 15 years? Assume the market rate for this bond is 14 percent and that the interest is paid semiannually. a. $790.74 b. $1,000.00 c. $813.50 d. $853.30P1000.00 face-value bond pays dividends of P110.00 at the end of each year. If the bond matures in 20 years, what is the approximate bond value at an investment rate of 12% compounded annually? (Ans. P925.00)
- 18. Assume that a 15-year, $1,000 face value bond pays semi-annual interest of $30.00. If an investor requires(Market interest rate) a simple annual rate of return of 8 percent, how much should the investor be willing to pay for this bond? (Round the answer to two decimal places.) O $827.08 O $572.03 O $1,358.24 O $835.81 O $1,120.7126. Assume that you wish to purchase a 30-year bond that has a maturity value of P1,000 and a coupon interest rate of 9.5%, paid semiannually. If you require a 6.75% rate of return on this investment, what is the maximum price that you should be willing to pay for this bond? a. P1,352 b. P1,450 c. P1,111 d. P67518. How much can be paid for a P 50,000, 10% bond, with interest paid semiannually, if the bond matures 12 years hence? Assume that the purchaser will be satisfied with 8% nominal interest compounded semiannually? D. P 75,620 A. P 57,620 B. P 75,260 C. P 57,720 19. A $50,000 bond has a maturity date of six years from now. The bond interest rate is 6% per year payable semiannually. At a market interest rate of 4% per year payable semiannually, the present worth of the bond is closest to: D. $55,288 A. $41,695 B. $44,291 C. $52,341 20. A 6%, $10,000 bond has interest payable annually. The bond will mature 10 years from now. At what market interest rate will the present worth of the bond be $10,000? A. At an interest rate less than 6% per year C. 6% per year D. At an interest rate greater than 7%/year B. 6% per year compounded semiannually 21. A $10,000 municipal bond has an interest rate of 6% per year, compounded semiannually. The bond will mature in 10 years. If the market interest…
- A P10 000.00 bond that pays P300.00 quarterly matures in five years. Determine the discount or premium to be offered an investor who desires a yield of 14% to maturity. (Ans. Bd=P476.30)Question 6. A two-year coupon bond has the following characteristics: Buying price: 18750 $ Face Value: 20000 S Annual interest rate: 5% Mode of payment: Quarterly What will be the final earning in acquiring such as a bond?A bond with a par value of P1000.00 and with a bond rate of 9% payable annually is to be redeemed at P1050.00 at the end of 6 years. If it is sold now, what should be the selling price to yield 8%? (Ans. P1077.74)