Eren purchased a bond, costing 890, three years ago, with a current price of 925. This bond paid 100 year as interest payments ( end of each year). She wants to hold the bond for 4 more years and it is expected to be sold at the end of year four at 960. It is also expected that there will be no default of yearly interest payments. Assuming that the required rate of return is 11.25%.
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Eren purchased a bond, costing 890, three years ago, with a current price of 925. This bond paid 100 year as interest payments ( end of each year). She wants to hold the bond for 4 more years and it is expected to be sold at the end of year four at 960. It is also expected that there will be no default of yearly interest payments. Assuming that the required
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- Jon Snow purchased a bond, costing 100o, three years ago, with a current price of 1,150. This bond paid 80 year as interest payments (end of each year). She wants to hold the bond for 4 more years and it is expected to be sold at the end of year four at 1,250. It is also expected that there will be no default of yearly interest payments. Assuming that the required rate of return is 8%. Compute the price of the bond.Amy wants to buy a bond that will mature to $5500 in eight years. How much should she pay for the bond now if it earns interest at a rate of 3.5% per year, compounded continuously? Do not round any intermediate computations, and round your answer to the nearest cent.Marvel is an investor who wanted to purchase a bond. This bond has a maturity of 10 years, face value of P1,000 and pays interest of P60 twice a year/ every 6 months. How much he be willing to pay for this bond, if the nominal annual required rate of return is 10 percent with semiannual compounding?
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- Kayla is considering an investment in either a bond or a financial instrument that has a return of 0.5% per quarter. The face value for the bond is $25,000 that matures in 15 years and has a bond rate of 7% paid monthly. What is the amount of the monthly payments received from the bond?Lisa's new firm plans to issue a permanent callable bond with a par value of $1,000 and a nominal rate of 5% yearly. The nominal interest rate on these bonds will be 8% next year. Then a year from now, the bond's nominal interest rate will be 9% or 6% with the equal probability(50%). These bonds can be redeemed for $1350. If the bond is called when the interest rate decreases, calculate the callable bond price for today?3) Don makes a one time investment in the following way: he purchases a 30 year, $5, 000 face value bond with semiannual coupons, and with a semianmual 4% coupon rate and a semianmual 6% yield rate. Immediately after receiving his coupons, he invests his coupons into an account earning a nominal semiannual interest rate of i) = 3%. Find how much is in the account after 30 years and find Don's nominal annual yield rate over the 30 year period.
- You are considering purchasing a bond. The bond will pay you $100 at the end of each year for three years. At the end of the third year, the bond will also pay you back its $1,000 face value. Assuming a 10% discount rate, how much is this bond worth today? Round to the nearest dollar. I am having trouble calculating how much this bond is worth today. Thank you!If the owners choose to invest in bonds instead, they look at a $136,125 bond set to mature in 9 years with a bond rate of 2%, payable semi-annually. The market rate is 5.40%, compounded semi-annually. The owners will only purchase the bond if they can afford it with their savings $123,750, and they can get the bond at a discount because they think the market rate will go down, potentially making the bond more valuable in the future. 1. If the bond rate is 2%, will the bond be sold at a premium or a discount? Explain your answer.Dolores has a 5-year investment horizon. She is considering purchasing an 8-year, 6% coupon bond (annually). Coupon payments are paid every six months and the bond has a face value of €1,000. The bond sells to offer a yield to maturity of 6% and therefore the price is €1,000. Dolores expects to be able to reinvest in the coupon payments at an annual interest rate of 5%. At the end of the planned investment horizon, the bond will be selling to offer a yield to maturity of 5% annually. What is the interest-on-interest amount to the closest cent.