[ Bond Principal: R 5000000 Issue date: 30 June 2021 Maturity date: 15 September 2026 Coupon rate: 7.00% Coupon payment dates: 30 June and 31 December. The bond register closes one month before the coupon payment dates]. Suppose that the bond traded at a market price of R 103.475% for settlement on 10 December 2021 . The number of days from 30 June 2021 to 10 December 2021 is 163 and the number of days from 10 December 2021 to 31 December 2021 is 21 . What is the running yield on the bond? (note: if the answer is 5.55%, answer 5.55).

Q: You want to buy a $189,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan…

A: Home value = $189,000Down payment = 0.15 (15%)Monthly interest rate (r) = 0.003291666667 (0.0395 /…

Q: Your grandfather has offered you a choice of one of the three following alternatives: $11,500 now;…

A: Present value refers to the current value of a future amount of money or cash flow, based on the…

Q: The current income is ? The investor would experience a Gain, Loss, or Neither? The total return…

A: A bond refers to the instrument which obligates the issuer to pay pre-defined interest to the buyer.…

Q: Find the present value of the ordinary annuity with annual payment of $400 per year for 10 years at…

A: The ordinary annuity is a series of payments made at the end of each period with equal interval of…

Q: On January 3, 1997, a company issued bonds with an annual coupon of 9 percent, maturity of 20 years,…

A: The price of a bond is equal to the present value of coupon payments over the period of maturity and…

Q: What is a unique feature for Power BI Services (PowerBI.com)?

A: Power BI Services (Power BI. com) allows users to build interactive dashboards, which are a key…

Q: Consider two streams of cash flows, A and B. Stream A’s first cash flow is $9,800 and is received…

A: Given,Stream A cashflow = $9800Growth rate = 3%Discount rate = 11%Cashflows starts after 3years from…

Q: Contract Evaluation Worksheet Complete the following worksheet by inserting the appropriate values…

A: To evaluate Colin Closer's contract and verify the calculations provided by his agent, Noah…

Q: The common stock of Leaning Tower of Pita, Inc., a restaurant chain, will generate the following…

A: Rate of return is the profit earned on the investment and rate of return is the sum of dividend…

Q: 4.  a.)  What is the future value of an annuity due with an annual payment of $1,500 for four years…

A: Future Value is that amount which includes the interest earned and investment value which is…

Q: A non dividend-paying stock has a spot price of $43.40. The nine month risk-free rate is 5.70…

A: The appropriate value of the 9 months future contract is…

Q: Allison and Leslie, who are twins, just received $15,000 each for their 24th birthday. They both…

A: A retirement goal is a financial objective individuals set to ensure they have sufficient funds and…

Q: An investor has two bonds in his portfolio. Each bond matures in 4 years, has a face value of…

A: A financial instrument that has a fixed income and also helps a company to raise funds for business…

Q: Suppose you borrowed $25,000 at a rate of 8.5% and must repay it in 5 equal installments at the end…

A: We need to use loan amortization formula below to calculate annual payment of loan.WherePMT…

Q: The beta of an investment measures the probability weighted expected rate of return of a portf True…

A: Beta is measure of the risk and volatility of the stock and show how much is change in return with…

Q: Fairchild Garden Supply expects $740 million of sales this year, and it forecasts a 20% increase for…

A: Inventory turnover ratio is one of the efficiency ratios used in business. This shows how…

Q: Required: Suppose you conduct currency carry trade by borrowing $1 million at the start of each year…

A: As per the given information:Borrowing: Exchange rate on January 1, 2000:

Q: Suppose you have $1,000 and plan to purchase a 1-year certificate of deposit (CD) that pays 0%…

A: The maturity amount of a certificate of deposit can be calculated using the compound interest…

Q: Which of the following are typical negotiable certificate of deposit (NCD) denominations? Check all…

A: A Negotiable Certificate of Deposit (NCD), often referred to simply as a CD, is a type of…

Q: Which of the following statements regarding the graph of the SML is most accurate? Select one O A. O…

A: Inorrect AnswerBeta for the portfolios are increasing, as their expected returns are increasing. So…

Q: Free cash flow valuation Nabor Industries is considering going public but is unsure of a fair…

A: (a)The free cash flow for the year 2025 isThe terminal value is

Q: A local entrepreneur asks you to invest $3,000 in a business venture. Based on your estimates, you…

A: IRR, is the discount rate that makes the present value of cash inflows equal to the present value of…

Q: Question list Question 1 O Question 2 O Question 3 Question 4 Question 5 O Question 6 O Question 7 K…

A: (a) Calculation showing the initial value of the transaction:Calculation showing the debit…

Q: A pension fund manager decides to invest a total of at most $40 million in US Treasury bonds paying…

A: These are the debt instruments issued by the government to the general public. The government…

Q: Zeda Inc., a U.S. MNC, is considering making a fixed direct investment in Denmark. The Danish…

A: Calculateion of the present value of concessionary loan payments:Formula used:

Q: What is the advantage of selecting the “Only Create Connection" option when importing data?

A: The "Only Create Connection" option in data import typically refers to importing data into a data…

Q: Suppose you invest $120 a month for 8 years into an account earning 10 % compounded monthly. After 8…

A: Compound = monthly = 12monthly Payment = p = $120Interest Rate = r = 10 / 12%Number of Payment = n =…

Q: Common stock value-Variable growth Newman Manufacturing is considering a cash purchase of the stock…

A: Maximum share price is the current price which is calculate With the help of future benefits from…

Q: Find the future value of an annuity due with an annual payment of $11,000 for three years at 3%…

A: An annuity is a payment schedule provided in exchange for a lump sum payment. It is widely used in…

Q: As of January 2020, the debt capita of Canadians has increased to? A. $28,829 B. $38,829 C. 18,829…

A: The term debt capita is generally used at place of term "Debt capital" In general it refers to…

Q: Problem 5-7 Calculating Profitability Index Vince plans to open a self-serve grooming center in a…

A: Profitability index is the ratio of present value of future cash flows and the initial investment.…

Q: a. How much must you deposit annually to accumulate this amount? b. If you decide to make a large…

A: Annual deposit required depends on the future value money and time period and interest rate of the…

Q: Question Workspace Check My Work (2 remaining) eBook Rader Railway is determining whether to…

A: Npv is also known as Net Present Value. It is a capital budegting technique which helps in decision…

Q: When should you use Power Pivot?

A: While a) When you want to clean, shape, and transform data is true to some extent, Power Pivot…

Q: What does the capital asset pricing model (CAPM) calculate?   a. The expected rate of return on…

A: Capital Asset Pricing Model (CAPM) is a financial model used to determine expected return on an…

Q: (Problem 3) Currently, the spot exchange rate is $1.50/£ and the three-month forward exchange rate…

A: 1. If the IRP is currently holding, the 3-month forward exchange rate would be Therefore, the IRP is…

Q: P/E ratios Expected growth Dividend yield years Industrials 15.00 0.08 0.04 Industries 21.00 0.13…

A: Implied growth duration is the timeframe that is needed for an investor to get back his/her…

Q: During the recession in mid-2009, homebuilder KB Home had outstanding 7-year bonds with a yield to…

A: A bond with a probability of default refers to a fixed-income security where there is a risk that…

Q: Claire needs to borrow $5000 to pay for NHL season tickets for her family. She can borrow from a…

A: Loans are paid in equal monthly installments that carry the payment for interest and payment for the…

Q: You would like to know how much you need to save and invest monthly to have $1 million in your…

A: Future value is a financial term that refers to the value of an investment or asset at a specific…

Q: Martinez, Incorporated, has purchased a brand new machine to produce its High Flight line of shoes.…

A: Break Even Units is that sales of units at which investor will recovder his total cost without any…

Q: An investment promises to pay $4500 every year for 12 years. However, it does not start paying until…

A: Present value is the equivalent value of money today based on the future payments to be received…

Q: Charles Wilson, the CFO of Sunland Automotive, Inc., is putting together this year's financial…

A: Given information,Cash balance: Accounts payable: Common stock: Retained earnings: Inventory:…

Q: What is the most efficient way to access data when you have multiple tables?

A: Creating relationships between tables is typically the most efficient and effective way to access…

Q: what would the estimated value for the property

A: Cash flows: $2,110,000Growth rate: 4%Required rate of return :13%

Q: hich of the following characteristics would an investor place a greater priority on for a short-term…

A: Investment is placing the extra money to make profit and return on investment and investment may be…

Q: Year 2012 2013 2014 2015 2016 Equity Fund (%) -7.1 -13.5 5.5 6.5 7.4 Bond Fund (%) 0.9 1.3 2.4 2.7…

A: Here, YearEquity fund (%)Bond Fund…

Q: Juliana is taking out an $8,700, 3year loan with an APR of 2.31%. What will be the monthly payment…

A: Monthly payment is refer as the regualr amount of fund or payments at monthly time interval. It is…

Q: What's the future value of a 3%, 5-year ordinary annuity that pays $300 each year? If this was an…

A: Interest Rate = r = 3%Time = t = 5 YearsAnnuity = a = $300

Q: | Six years ago the Templetion Company, issued 18- year bonds with a 14% anual Coupon rate at their…

A: The realized rate of return on holding a bond till it is called refers to the actual return an…

Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.