QUESTION 4 You buy a $1000-par 6.5% annual coupon bond for $915 and sell it 4 years later for $940. What is your annual HPR? Formatting: Enter "7.14" for 7.14%
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- Karan Subject-Accounting What would you pay for a $10,000, 5 year, 8% bond if you desired to yield 10%? Need help knowing how to solve! Answer: 9,241.83You're considering an investment in 10-year, $1,000 face value bonds that pay 8.50% annually and sell for $1,033.55. If you do make the purchase, how much will you earn? Select one: O a. 8.00% O b. 8.50% Oc. 7.59% Od 8.25% Oe. 8.86% Clear my choice AVideo Excel Online Tutorial C Excel Online Structured Activity: Bond valuation. You are considering a 10-year, $1,000 par value bond. Its coupon rate is 11%, and interest is paid semiannually. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. X Open spreadsheet If you require an "effective" annual interest rate (not a nominal rate) of 11.68%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent.
- Attempts 1 1 Keep the Highest 1/3 5. Problem 7.09 (Yield to Maturity) eBook Harrimon Industries bonds have 6 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 10%. a. What is the yield to maturity at a current market price of 1. $843? Round your answer to two decimal places. % 2. $1,228? Round your answer to two decimal places. % b. Would you pay $843 for each bond if you thought that a "fair" market interest rate for such bonds was 13%-that is, if rd = 13%? I. You would not buy the bond as long as the yield to maturity at this price is less than the coupon rate on the bond. II. You would buy the bond as long as the yield to maturity at this price is greater than your required rate of return. III. You would buy the bond as long as the yield to maturity at this price is less than your required rate of return. IV. You would buy the bond as long as the yield to maturity at this price equals your required rate of return. V. You…Excel Online Structured Activity: Bond valuation You are considering a 10-year, $1,000 par value bond. Its coupon rate is 11%, and interest is paid semiannually. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. X Open spreadsheet If you require an "effective" annual interest rate (not a nominal rate) of 8.15%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent. $aa.2 Assumes Venture Healthcare sold bonds that have a ten-year maturity, a 12 percent coupon rate with annual payments, and a $1,000 par value. What would be the bonds value? Hint: Watch the Homework Hint video to figure out how to calculate this using Excel. Choice: $750 Choice: $1,000 Choice: $1,500 Choice: $2,000
- 3 E D C You buy a bond for $1,050 that pays $30 interest every 6 months. It will reach maturity in 9 years at which time it will return its face value of $1000 plus the final $20 interest payment. What is the pre-tax annual rate of return on this bond? Estimate to 2 decimal places. # F4 4 Upload Choose a File R F $ V F5 5% T G F6 B Q Search F7 C 6 A Y H 7 F8 & U F9 8* J E M 88 - K LG F10 9 A I ( O < TAF F11 - L 0 ) F12 + P ; A : Prt Sc ScrLk = [ { /? Ins + Del Backspace ] } PgUp 1 Home NumLk Enter PgDn End Shift I 7 Home 44 Pause Break 8 10:33 AM 3/23/2023 2 ★ 5 1 End 9 PgUp 1 2Check My Work eBook Harrimon Industries bonds have 4 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 8%. a. What is the yield to maturity at a current market price of 1. $819? Round your answer to two decimal places. % 2. $1,085? Round your answer to two decimal places. % b. Would you pay $819 for each bond if you thought that a "fair" market interest rate for such bonds was 13%-that is, if rd = 13%? I. You would not buy the bond as long as the yield to maturity at this price is less than the coupon rate on the bond. II. You would buy the bond as long as the yield to maturity at this price is greater than your required rate of return. III. You would buy the bond as long as the yield to maturity at this price is less than your required rate of return. IV. You would buy the bond as long as the yield to maturity at this price equals your required rate of return. V. You would not buy the bond as long as the yield to maturity at…Quiz Saved Help Save & Exit Submit Check my work Calculate the purchase price of the $1,000 face value bond using the information given below. (Do not round the intermediate calculations. Round your final answer to 2 decimal places.) Maturity date Dec 15, 2022 Market rate (%) 7.7 Issue date Purchase date Coupon rate (%) 5.65 :00 Dec 15, 1987 June 15, 2ee5 Assume that • Bond interest is paid semiannually. • The bond was originally issued at its face value. Bonds are redeemed at their face value at maturity • Market rates of return are compounded semiannually. Bond price $4
- Current Attempt in Progress What would you pay for a $195,000 debenture bond that matures in 15 years and pays $9,750 a year in interest if you wanted to earn a yield of: Click here to view factor tables. (a) 3% ? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.) Amount to pay $Question 4 What is the price of a straight bond with: $1,000 face value, coupon rate of 5%, a YTM of 5%, and a maturity of 37 years? (round your final answer to 1 decimal place: 20.456 -->20.5) Your Answer:How 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