How much can be paid for a P100,000, 10% pa , 20 year bond with interest paid annually, 8 years after its purchase? Assume that the purchaser will be satisfied with 6% pa interest? O P130,825 O P 133,872 O P131,825 P133,535
Q: what is the bond’s yield to call? Interest is paid semiannually.
A: Yield to call is the return received by the holder of the bond that held until maturity. It is a…
Q: A $1,000 principal value bond costs $35 in quarterly interest and matures in ten years. How much…
A: 71c. $1,115.57
Q: A $5,000 bond is offered for sale. It has a stated interest rate of 7% paid ann end of 8 years, the…
A: Price of bond is sum of present value of the interest payment and present value of face value of…
Q: A P10,000, 8% bond pays dividends semi annually and will be redeemed at 110% on April 29, 2027.It is…
A: Par value = P 10,000 Coupon rate = 8% Semi annual coupon amount = 10000*0.08/2 = $ 400 Years to…
Q: Use the following tables to calculate the present value of a $487,000 @ 5%, 5-year bond that pays…
A: Present Value of bond is calculated by the present value of annual interest payment and present…
Q: gage bond issued by Automation Engineering is for sale for $8,900. The bond has a face value of…
A: Face value =10000 Market price =8900 Coupon =5% MATURITY =9 years Could =500 Annual
Q: A 1000 bond bearing interest at 5.4% payable semi-annually is due in three years. If money is worth…
A: Purchase price of bond can be calculated by determining the present value of bond plus present…
Q: P5000.00, 10-year, 8% bond that pays interest annually was purchased four years ago with a discount…
A: Rate of return to investor will be IRR (internal rate of return). IRR is the rate at which present…
Q: 4. A man purchase government bonds at P750 each which mature in 10 years and have a face value of…
A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…
Q: Use the following tables to calculate the present value of a $515,000, 5%, 5-year bond that pays…
A:
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.
Q: 6. AP10,000, 8% bond pays dividends semi annualty and will be redeemed at 110% on April 29, 2027.…
A: The purchase price of the bond will be the present value of the dividends and the redemption value.
Q: Ruby Corporation is offering P10 000.00, 8% bonds that pays interest quarterly for P8500.00. Jade…
A: Ruby Corporation: Face value = P 10000 Coupon = (8% of 10000) / 4 = P 200 Bond price = P 8500 n = 5…
Q: A company buys a 5-year zero coupon bond that will mature for $1800. It plans to use this asset to…
A: Value at maturity = $1800 Time period = 5 years First Payment = $307. 73 in 1st year Second Payment…
Q: A $3000 bond that pays 9%semi-annually is redeemable at par in 15 years. Calculate the purchase…
A: Solution:- We know, the purchase price of bond is the present value of amounts receivable from the…
Q: A $10 000 bond bearing interest at 5% payable semi-annually is redeemable at par on August 04, 2035.…
A: Selling price of bond denotes the price which a bondholder will get from selling the bond or which a…
Q: ABC Manufacturing issues a $100,000 face value bond at a discount of $92,788, 5-year maturity, 10%…
A: Bond are issued at a discount to their face value when the market interest rates are higher than the…
Q: A $100 000 face value strip bond has 6 years remaining until maturity. If the current market return…
A: strip bonds are bonds whose coupon and principal payment have been removed. It is also known as zero…
Q: P1000.00 face-value bond pays dividends of P110.00 at the end of each year. If the bond matures in…
A: The value of the bond is the sum of present value of all the dividend and the present value of the…
Q: 64. You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6…
A: Please find the answer to the above question below:
Q: What would you pay for a $205,000 debenture bond that matures in 15 years and pays $10,250 a year in…
A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…
Q: Q10. Consider a discount bond with a principal payment of $1,000, a price of $900, and a YTM of E. 5…
A: Face value (FV) = $1000 Price (PV) = $900 YTM (r) = 5.4093%
Q: ABC Corp receives a 4 year P400,000 non interest bearing note that requires 4 equal annual…
A: Non Interest bearing note is a type of note which has no stated interest.
Q: A bond pays P342 interest per year and has face value of P9,964 at the end of 15 years, when it has…
A: Here coupon (PMT) = 342; rate = 13%; FV = 9964 and nper (or n) = 15. In excel we can use the PV…
Q: Fely Corporation issued a P100,000, 14 percent, 15-year bond at 98. The call price is 104. Seven…
A: Call premium per bond = call price - face value = 104 - 100 = 4
Q: A 20-year bond with a face value of P 5,000 is offered for sale at P 3,800. The nominal rate of…
A: Bonds are one of the most traded financial asset in the financial market. It is demanded by the…
Q: What price should be paid for a $10,000 Government of Ontario strip bond with 17 years remaining to…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: determine a) the bond rate; b) the bond’s purchase price. (Ans. 12%; P5627.57)
A: 1) Annual coupon = 150 * 4 = 300 Bond rate = (Annual coupon / face value) * 100 Bond rate = (300 /…
Q: Determine the current value of an 7.5% GOJ bonds with a face value of $500,000.00 that pays interest…
A: Bond Current Price = C*(((1-(1+r)-n)/r)) + (Mv * (1+r)-n) Where C = Coupon amount Mv = Maturity…
Q: Issue Price The following terms relate to independent bond issues: a. 500 bonds; $1,000 face value;…
A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…
Q: Given the following data of a bond: Face amount P1, 500 Bond Interest rate 6% Interest paid…
A: Bond Bonds have an annual coupon rate attached to themselves, which the bondholder receives each…
Q: 1. Determine the yield and retun for the buyer of a 10-year, 10% bond of P10 000.00 value if it is…
A: Yield to Maturity is the rate of return if the bond is held till maturity. Yield = (CV + ( FV - PP)…
Q: Determine the market price of a $485,000, 10-year, 8% (pays interest semiannually) bond issue sold…
A: The Market price of bond issue shall be calculated by adding the present value of the total payments…
Q: - A 10-year, P20,000 bond was issued at a nominal interest rate of 8% with semiannual compounding-…
A: The Price of the bond refers to the present value of the coupon cash flows and the maturity value.…
Q: A P1,000,000 bond issue of 3%, 15 years maturity year was sold at 95% of the value. What is the rate…
A: Par value of bond = P 1,000,000 Coupon rate = 3% Coupon amount = 1,000,000*0.03 = P 30000 Years to…
Q: You own $1,000,000 in face value of bond that is currently priced at 99.50. The accrued interest per…
A: Face Value = 1,000,000 Haircut = 0.25% 5 days repo Repo rate = 2%
Q: A $10,000 face value municipal bond pays $1000 interest at the end of every year. If there are 12…
A: Bond value is the current value of a bond on the basis of the present value of all the cash flows a…
Q: bond pays $5000 in 25 years an earns an annual interest rate of 4.75%. It also pays $60 per year as…
A: Bond Price is present value of all cash flows during the life of the bond discounted at yield to…
Q: 6. A P10,000, 8% bond pays dividends semi- annually and will be redeemed at 110% on April 29, 2027.…
A: Here,
Q: A bond pays $50,000 per year and has a face value of $500,000 at the end of 8 years when it has to…
A: Annual payment = $ 500 Face value = $ 500,000 Period = 8 Years Current price = $ 390,000
Q: ¥1 billion, 7%, 10-year bonds are issued at face value. Interest will be paid semi-annually. When…
A: Solution Given Face value 1 billion Coupon rate 7% Years to maturity 10 years…
Q: A 6 year bond costs $3,000 and will pay a total of $200 interest over its lifetime. What is its…
A: Simple interest refers to interest that is just applied to the principal sum of money. The interest…
Q: a. Assuming you purchased the bond for $350 what rate of return would you earn if you held the bond…
A: given data bond purchased price = $350 no of years = 25 maturity value = $1000 a) finding rate of…
Q: A P1,000,000 issue of 3%, 15-year bond was sold at 95%. What is the rate of interest of this…
A: Par value = P 1,000,000 Issue price = 1000,000*0.95 = 950,000 Coupon rate = 3% Coupon amount =…
Q: Biti Bank purchase a $5,000 bond that pays 8% pa compounded half-yearly and is redeemable in exactly…
A: The purchase price can be computed by discounting all the receipts (coupon and redemption) at the…
Step by step
Solved in 2 steps
- Consider a one-year discount bond that has a present value of P1,500. If the rate of discount is 4 percent, the future value of the bond (the amount the bond pays in one year) is? a. P1,560.00 b. P1,540.00 c. P1,440.00 d. 1,442.31A $100 000 face value strip bond has 6 years remaining until maturity. If the current market return rate is 4% compounded semi- annually, what is the fair market value of the strip bond? Select one: O A. S126 824 O B. $79 031 OC. $88 797 O D. $100 000 OE $78 849What is the present value of a $500,000 12-year Bond with annual interest payments of $40,000 (contract rate of 8%) assuming an effective rate of 10%? You must show work to receive credit for this problem. Paragraph Lato (Recom... v 19px... ✓ T BI U A V => DC + v ...
- a. Assuming you purchased the bond for $350 what rate of return would you earn if you held the bond for 25 years until it matured with a value $1000? a. Rate of return____% b. Suppose under the terms of thebond you could redeem the bond in 2024. DMF agreed to pay an annual interest rate of 1.4 percent until the date. How much would the bond be worth at that time? b. Bond value_____ c. In 2024 instead of cashing in the bond for its then current value you decide to hold the bond until it mature in 2043. What annual rate of return will you earn over the last 19 years? c. Rate of return___%How much is a bond worth if it pays $55 per year in interest forever and the market interest rate is 8%? $440 S687.50 S787.60 $1,250How much would you be prepared to pay for a $1,000 bond which comes due in 8 years and pays $100 interest annually assuming your required rate of return is 12% (pick closest answer)? a. $901 b. $1,032 c. $1,007 d. $962
- Given the following data of a bond: Face amount P1, 500 Bond Interest rate 6% Interest paid semi-annually P45.00 Terms 10 years Up for sale at the end of 3 years, 7 years to go. The buyer of the bond wishes to earn at the rate of 8% a year compounded semi-annually. What is its fair value at the end of the third year when it is offered for sale? O P1,975.34 O P633.79 O P2,366.21 O P1,341.5521. A bond with a face value of $1000 and an 6% annual bond rate is redeemable at face value in 20 years; if it pays dividends semiannually, what is the maximum amount a purchaser will be willing to pay, if he is interested in a 8% annual yield compounded semiannually? a. b. c. d. e. $1515 $1000 $828 $1792 $802You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months. If your nominal annual required rate of return is 10 percent with semiannual compounding, how much should you be willing to pay for this bond? Select one: O a. $1,124.62 O b. $1,086.15 O c. $ 957.50 O d. $826.31 O e. $1,032.20
- 3. 67 Use the following tables to calculate the present value of a $763,000, 6%, 6-year bond that pays $45,780 ($763,000 x 6%) interest annually, if the market rate of interest is 7%. Present Value of $1 at Compound Interest spo 0.95238 0%%% 0.94340 0.93458 60606'0 2 000680 0.87344 0.82645 0.86384 0.83962 0.81630 0.75131 0.82270 0.79209 0.76290 0.68301 4. 0.78353 0.74726 0.62092 0.74622 0.70496 0.66634 0.56447 0.71068 0.66506 0.62275 0.51316 0.67684 0.62741 0.58201 0.46651 8. 0.64461 0.59190 0.54393 0.42410 0.61391 0.55839 0.50835 0.38554 Present Value of Annuity of $1 at Compound Interest Periods 0%%9 0% L 0.95238 0.94340 0.93458 1. 60606'0 1.85941 1.83339 1.80802 1.73554 2. 2.72325 2.67301 2.62432 2.48685 3. 3.54595 3.46511 3.38721 3.16987 OVUCC V ( Previous Next 3:29 PM a. 53°F Sunny (中罗 12/14/2021 LEGO prt sc 144 pause shilt home alt ctri18. 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…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 $1,120.71