Question 2 of 4 A bond that has a face value of $1,500 and coupon rate of 3.40% payable semi-annually was redeemable on July 1, 2021. Calculate the purchase price of the bond on February 10, 2015 when the yield was 3.90% compounded semi-annually. $0.00 Round to the nearest cent
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- A bond that has a face value of $1,500 and coupon rate of 4.10% payable semi-annually was redeemable on July 1, 2021. Calculate the purchase price of the bond on February 10, 2015 when the yield was 4.60% compounded semi-annually. Round to the nearest cent Pre Di HOME HINTE hp SUBMIT QUESTION SAVE PROGRESSA $1000 bond with semi-annual coupons at j2 = 10% payable January 1 and July 1 each year matures on July 1, 2019, for $1050. a) Determine the price on January 1, 2014, to yield j2=1012%j2=1012%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price $ b) Is the bond purchased at a premium or a discount? Premium Discount c) Calculate the entries in the bond schedule on July 1, 2014, and January 1, 2015. (Do not round intermediate calculations. Negative answers should be indicated by a minus sign. Round your answers to 2 decimal places.) Bond InterestPayment Interest on Book Value Book ValueAdjustment Book Value - - -A $10,000 bond with a coupon rate of 5% was redeemable on July 1, 2028. It was purchased on September 10, 2015 when the yield rate was 6% compounded semi- annually. Determine the purchase price of the bond. Paragraph IU ... Purchase Date: Redemption Date: 取 A
- n A $105,000 bond redeemable at par on October 15, 2028 is purchased on May 9,2017. The bond interest rate (coupon rate) is 8.94% payable semi-annually and the yield (market interest rate) is 2.24% compounded semi-annually. Should this bond sell at a Premium or a Discount? (Premium or Discount) a.) Determine the value of the coupon. b.) Use Excel's COUPNUM function to find the number of coupons left on the bond. c.) Determine the Present Value of the bond, at the last coupon date. Rounded to 2 decimals. d.) Determine the Present Value of the coupons at the last coupon date. Rounded to 2 decimals. e.) What is the purchase price of the bond on the last coupon date? 1.) Use Excel's COUPDAYBS to determine the number of days from the last coupon date to the purchase date g.) Use Excel's COUPDAYS to determine the number of days between coupon dates. h.) Use the ratio of days as 'n' to calculate the purchase price of the bond on the settlement date6. A $20,000 bond redeemable at par on October 27, 2017, is purchased on November 15, 2006. Interest is 6.7% payabie semi-annually and the yield is 8.3% compounded semi-annually. What is the cash price of the bond?2. Calculate the current price of the following bonds. Current date is 01 January 2020 a b C d e f Face value $1,000 $6,000 $5,000 $10,000 $1,000 $2,000 Interest, pa 4% 5% 4.50% 8% 6% 4% Required rate Coupon 5% Annually 6% Nil 6% Semi annual 6.50% Quarterly 8% Semi annual 6% Monthly Maturity 31-Dec-20 1-Jul-21 1-Jul-22 31-Dec-30 31-Dec-40 1-Jul-25
- A bond that has a face value of $1,500 and coupon rate of 3.20% payable semi-annually was redeemable on July 1, 2021. Calculate the purchase price of the bond on February 10, 2015 when the yield was 3.70% compounded semi-annually. $0.00A $1,000 bond that pays interest at j23D6% is redeemable at par on March 1, 2025. Find the purchase price that would have been paid on September 1, 2010 to yield the investor j2=4.8%. Your Answer: AnswerQ2 A bond has a maturity value draw of 1.125 % from present worth and is paying discrete compound interest at an effective annual rate of 3 percent. Determine the following at a time four years before the bond reaches maturity value compounded continuously , if that discount equal $ 112. (a) Present and future worth. (b) Discrete compound rate of effective interest which will be received by a purchaser if the bond were obtained for $700. (c) Repeat part (a) for the case where the nominal bond interest is 3 percent compounded continuously 03
- 2. Determine the purchase price and the amount of premium/discount of the given bonds. Face Value Coupon Rate Yield Rate Redemption Date Purchase Date Purchase Price ? a. $1000.00 5.25% 5.25% January 01, 2024 January 01, 2019 b. $5000.00 4.75% 6.75% October 20, 2028 October 20, 2018 ? c. $10,000.00 7.85% 4.15% August 16, 2034 August 16, 2014 ? Amount of Premium/Discount ? ? ?Problem #1: A bond issued on February 1, 2004 with face value of $44400 has semiannual coupons of 8%, and can be redeemed for par (face value) on February 1, 2021. What is the accrued interest and the market price (the "clean" price) of the bond on November 15, 2006, if the bond's yield on that date is to be 11%? (use actual/actual for accrued interest). Problem #1: accrued interest and market price (in that order), separated with a comma both answers correct to 2 decimalsGive typing answer with explanation and conclusion 1- Imagine the bond above displayed the following details: $10,000 Matures: January 31, 2030; Interest of $200 payable June 30 and December 31 of each year. Can you calculate the annual effective interest rate for this bond? a)2% b)4% c)6% d)One cannot tell.