What would be the selling price of a 10-year bond with face value of 100,000, interest at 20% which is paid quarterly if an investor desires to earn a 16% nominal interest on 100,000 worth of these bonds?
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What would be the selling price of a 10-year bond with face value of 100,000, interest at 20% which is paid quarterly if an investor desires to earn a 16% nominal interest on 100,000 worth of these bonds?
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- How much will the coupon payments be of a 25-year $1,000 bond with a 5% coupon rate and quarterly payments?What is the value of a 6%, 10-year bond with a redemption value of $20,000 that pays dividends semi-annually, if the purchaser wishes to earn an 8% return?A ten-year bond, with par value equals $1000, pays 10% annually. If similar bonds are currently yielding 6% annually, what is the market value of the bond? Use semi-annual analysis
- How much will the coupon payments be of a 20-year $5,000 bond with a 4% coupon rate and semiannual payments?What would be the selling price of a 10-year bond with a face value of P100.000, interest at 20% which is paid quarterly if an investor desires to earn a 16% nominal interest on P100,000 worth of these bonds? a. P82 836 b. P119.793 c. P112 835 d. P94,287What is the yield to maturity on a bond that has a price of $1,600 and pays $100 interest annually for 6 years at the end of which it repays the principal of $1000? Is the bond selling at premium, at par, or at discount? How can you tell?
- What is the maximum amount an investor should pay for a 25-year bond with a $20,000 face value and 8% coupon rate (interest only paid semi-annually). The bond will be kept at maturity. The investor's effective annual interest rate for economic decision is 10%. Answer: $16,726Which of the following statements is true? You 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:You purchase a $10,000 bond at a discounted price of $9500. The 10-year bond pays 6% interest quarterly. If you sell the bond at maturity (10 years) for its face value, determine the rate of return for your investment. The rate of return will be the annual interest rate (not the bond interest, that is 6% quarterly) which would make the present worth equal to zero.
- What is the purchase price for a bond that is paying 6 percent annual coupon rate in Semi-annual payments if its Yield to Maturity is 10 % and it has 10 years and 10 months from its purchase date until its maturity? What is the accrued interest rate? Assume the bond is traded in a year of 366 days when calculating the accrued interest.A 20 year, 5% annual-pay bond has a par value of $1,000, what would this bond be trading for it it were being priced to yield 12% as annual rate? what is the method to solve this equation and answer ?What would you pay for a $100,000 debenture bond that matures in 15 years and pays $5,000 a year in interest if you wanted to earn a yield of: a. 4%? b. 5%? c. 6%?