If a one-year bond with a face value of $100 (the bond pays the bearer $100 one year from now) sells today for $85, what is the interest rate on the bond? 15% 17.6% 1.18%

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: 1. Consider a bond that promises to pay $100 in one year. If its price today is $85, If the interest…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: A $30 000, 3% bond redeemable at par is purchased 7 years before maturity to yield 5.5% compounded…

A: Par value (FV) = $30,000 Coupon rate  = 3% Quarterly coupon amount (C) = 30,000*0.03/4 = $225 Years…

Q: How much is a bond worth if it pays $55 per year in interest forever and the market interest rate is…

A: In the given we require to calculate the bond worth from following details: Annual interest = $55…

Q: ou purchase a U.S. 8.14%, 30-year bond with a face value of $100 selling at par. 1. What is the…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

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: A 6-year bond pays interest of $80 annually and sells for $950. What are its coupon rate and YTM

A: Computation of the coupon rate and YTM is shown: Hence, the coupon rate is 8% and YTM is 9.12%.

Q: A bond promises to pay $5,350 next year. The interest rate on this bond is 7%. The price of this…

A: In the given question we need to compute the price of a bond.

Q: For a three year bond of $2,600 at a simple interest rate of 11% per year, find the semiannual…

A: Value of Bond is $2,600 Time period of bond is three years Simple interest rate is 11% To Find:…

Q: What is the coupon payment of a 15 -year $10,000 bond with a 9 % coupon rate with semiannual…

A: Given details are : Face value of bonds =$10000 Time period = 15 years  Coupon rate = 9% Coupon…

Q: A $100 bond, paying interest at 9.5 percent, redeemable at par in 10 years find the value of bond if…

A: The term bonds refer to the debt instruments that are issued with a motive to raise debt from the…

Q: 1. A bond maturing in 10 years pays annual coupon payment $80 each year and $1,000 upon maturity.…

A: Solution:- Present value of bond means the current price of bond at which it is trading in the…

Q: A P 250 000, 14% bond pays dividend semi-annually for 12 years. The bond is redeemable at par. If…

A: Here we need to compute the YTM of this bond given the details. We can do so by using the "RATE"…

Q: The par value of any bond with a maturity of 20 years is 100. This bond pays interest four times a…

A: In this question, the PV of bond should be computed which have Current market interest rate (YTM)…

Q: a bond pays P340 interest per year and has a face value of P8,328 at the end of 9 years, when it has…

A: Current value of bond = sum of present values of all cash flows Here pmt = 340; nper = 9; fv = 8328…

Q: What is the approximate yield to maturity for a seven-year bond that pays 11% interest on a $1000…

A: Using excel RATE function

Q: Emma bonds will mature in eight years; the coupon rate of the bond is 6% paid semiannually. If the…

A: Calculation of Selling Price of Bonds Face Value of Bonds = $ 1,000 Annual rate of interest = 6%…

Q: bond with a face value of $4,000 pays quarterly interest of 1.5 percent each period. Twenty-six…

A: Price of bond is present value of coupon payments and present value of par value of bond taken on…

Q: How much does the $1,000 to be received upon a bond's maturity in 8 years add to the bond's price if…

A: Future value = 1000 Years = 8 Discount rate (r)= 6%

Q: A $15,000, 5.5% bond is purchased 10.5 years before maturity to yield 8% compounded annually. If the…

A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…

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: How much will the coupon payments be of a 10-year $1,000 bond with a 7% coupon rate and quarterly…

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…

Q: The FAMA Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1000…

A: Using excel PV function

Q: A 9 percent cumulative premium is paid on a 20-year bond of a $1,000 par amount.The bond is now…

A: Bond is a debt security that is issued by organizations to raise debt funds from investors in…

Q: A 50,000$ bond has a maturity date of 6 years. the bond interest rate is 6% per annum payable…

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…

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: 20 year, 5% annual-pay bond has a par value of $1,000, what would this bond be trading for it it…

A: Coupon rate=5% Period =20 years  YEILD to MATURITY =12% Par value =1000

Q: The Wall Street Journal reports that the current rate on 10-year Treasury bonds is 2.75 percent and…

A: Formulas: [(1+10-year bond rate)^10]×[(1+E(10r10))^10] = (1+20-year bond rate)^20

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: a. Assuming you purchased the bond for $645, what rate of return would you earn if you held the bond…

A: Bond: It is a debt instrument issued by the corporation for raising capital. The company pays…

Q: A 10%, 25 year bond with a par value of $1,000 pays on an annual basis has a current call feature…

A: Yield to maturity(YTM) is the return that the investor expects to receive from the bond by holding…

Q: $1000 bond pays 6% interest annually with 13 yrs maturity. Purchase price $905 What is the yield to…

A: Solution:- Yield to maturity means the rate of return earned by the bond holder, if he holds the…

Q: The current interest rate on a 10-year coupon bond (with face value= $1000 and annual coupon rate=…

A: Bond Years = 10 Face Value =$1000 Annual Coupon rate = 3.25% Current Interest rate =  1.31%

Q: A bond promises to pay $250 in 12 months. The bank quotes you interest of 5% per annu

A: The bond price is calculated by using the concept of present value. The bond price is the discounted…

Q: n bond that will pay $1,000 at maturity (its par value). The bond pays interest annually at the end…

A: The given problem can be solved using PV function in excel. PV function computes current price  for…

Q: A corporate bond with a face (par) value of $10,000 will mature 7 years from today (it was issued 3…

A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…

Q: 18. Assume that a 15-year, $1,000 face value bond pays semi-annual interest of $30.00. If an…

A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…

Q: A bond promises to pay $150 in one year. What is the interests rate on the bond if its price today…

A: A bond is an instrument that represents the loan that is made by the investor to the company and…

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: 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: A bank offers 8% interest compounded quarterly. a) Determine the required selling price for a P10,…

A: Interest Rate = 8% Compounded quarterly Interest rate = 2% per quarter Face Value = 10,000 Time…

Q: What is the last payment amount of a bond with 1 payment per years, Coupon Rate 8.50% and principal…

A: Bonds are basically loans taken by the bond issuer, where coupons are interest payments and the…

Q: A bond promises to pay you $7,000.00 in 10 years. If you are able to earn 6 percent on securities of…

A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type]) Rate…

Q: A corporate bond with a face (par) value of $10,000 will mature 7 years from today (it was issued 3…

A: Formula to calculate yield to maturity:YTM=C+FV-PVnFV+PV2×100r= rate of returnC= Coupon paymentn=…

Q: A 9 percent cumulative premium is paid on a 20-year bond of a $1,000 par amount. The bond is now…

A: Please find the answer to the above question below:

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like: