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A: The question is to find the market price of a bond . A market value of a bond is calculated as…
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A: a and b
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A: YTM formula: YTM=2×Coupon+par-pricenpar+price2
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Q: the carrying value of the bonds after one year?
A: Here is the calculation for the above question.
Q: A S25,000,7% bond redeemable at par with interest payable annually is bought 5.5 years before…
A: Bond is the debt financial instrument form investor to borrower.
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A: A Bond refers to an instrument that represents the loan being made by the investor to the company…
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Q: A company issues $50,000 of 4% bonds, due in 5 years, with interest payable semiannually. Calculate…
A:
Q: On May 1, 2020, a $300,000, ten-year, 14% bond was sold to yield 12% plus accrued interest. The bond…
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A: Bond Valuation
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A: Solution:- Bonds are the securities issued by the corporations and governments, under which the…
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A: We require to calculate the present value of bond in this question. We can calculate the present…
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A: Calculate the issue price of the bonds.
Q: Determine the present worth if the bond pays 12% compounded annually?
A: The present worth can be found using the PV Function in excel. PV = (RATE, NPER, -PMT, -FV, 0) RATE…
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A: Solution: Bond issue price is calculated as present value of periodic interest and maturity value…
Q: On May 1, 2021, GREEN Company issued ₱2,000,000, 5-year, 10% bonds for ₱2,300,000. Each ₱1,000 bond…
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A: A bond is a debt instrument issued by large businesses and government organizations to raise debt…
Q: On January 1, 2021, LMN Company issued 10-year bonds with a face amount of P3,000,000 at a stated…
A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…
Q: Swifty Corporation issued $420000 of 8%, 5-year bonds at 105, with interest paid annually. Assuming…
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: A $650,000 bond issue on which there is an unamortized discount of $45,00, is redeemed for $600,000.…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Ideal Living Company has 8.5 percent bonds outstanding that are paid semi-annually and has the YTM…
A: A Bond refers to an instrument that represents the loan being made by the investor to the company…
Q: XYZ company issues R$100,000 in bonds dated January 1, 2020, due in five years with 9 percent…
A: Issue Price of the bonds = Present value of principal + Present value of interest payments = face…
Q: Debond Corp. issues £1,000,000 worth of fi ve-year bonds, dated 1 January 2010, whenthe market…
A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…
Q: On January 1, 2019,CalderetaCompany purchased 5-year bonds with face value of P8,000,000 and stated…
A: >Bonds Payable are the source of finance for the companies. >The bondholders are…
Q: A 12,000 bond redeemable at par in 20 years pays interest at 3 ½% compounded quarterly. Find the…
A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…
Q: . A Php14,000 , 7% bond payable quarterly is priced to yield 8%, m=4 and redeemable at par at the…
A: The purchase price of a bond comprises of the real value of all coupon payments and maturity value…
Q: Determine the present value of 10 year bonds payable with face value of $86,000 and stated interest…
A: It is also known as the discounted value of the estimated future cash flow as on the date of…
Q: On January 1, 2020, Edison Co. issued eight-year bonds with a face value of P 2,000,000 and a stated…
A: Solution: Bonds are the debt instruments issued by entity to obtain funding. Bonds are having…
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- A P5000.00 debenture bond that matures in 10 years pays P150.00 every three months. If an investor who bought the bond computed a nominal return of 10% compounded quarterly, determine a) the bond rate; b) the bond’s purchase price. (Ans. 12%; P5627.57)A 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. 1,487A bond pays $50,000 per year and has a face value of $500,000 at theend of 8 years when it has to be redeemed. If its current discounted priceis $390,000, what true interest could be earned on the bond? Ans. (14.9%)
- A P1000.00, 6-year, 12% bond is offered with a premium of P80.00. If interest is payable semi-annually, determine a) the current yield; (Ans. 11.11%) b) the yield to maturity. (Ans. 10.44%)A P5000.00, 10-year, 8% bond that pays interest annually was purchased four years ago with a discount of P152.00. If the bond is sold today for P4750.00, determine a) the rate of return realized by the owner; (Ans. 7.8%) b) the rate of return realized by the purchaser if he holds on to the bond until maturity. (Ans. 9.1%)A S25,000,7% bond redeemable at par with interest payable annually is bought 5.5 years before maturity. Determine the premium or discount and the purchase price of the bond if the bond is purchased to yield (a) 8% compounded annually : b)6% compounded annually The (Round the final answer to the nearest cent as neededRound all intermediate values to six decimal places as needed.)
- A P10 000.00, 5-year, 10% bond is offered with a discount of P250.00. If the bond pays interest quarterly, find a) the current yield; (Ans. 10.26%) b) the yield to maturity. (Ans. 11.07%)A perpetual bond pays the owner 29,000.0O at the end of each year with the interest rate is fixed at 6.1 %. Solve for Present Value of the perpetual bond.A bond pays P342 interest per year and has face value of P9,964 at the end of 15 years, when it has to be redeemed. If the interest of the bond is 0.13. What is the current value of the bond?
- 5.Find the bond premium and purchase price of a 7%, m=2, Php 15,000 bond redeemable atpar at the end of 13 years and is priced to yield 6% converted semi-annually? (Premium orDiscount)A P 250 000, 14% bond pays dividend semi-annually for 12 years. The bond is redeemable at par. If the bond is redeemable at 110%, what is the annual rate of return of the bond? Ans. (14.34%). A Php14,000 , 7% bond payable quarterly is priced to yield 8%, m=4 and redeemable atpar at the end of 14 years and 9 months. Find the purchase price and bond premium.(Premium or Discount)
