Homework Answers
40) D is correct. Only if YTM = Coupon rate, Price = Par Value
39) C is correct.
N = 3 x 2 = 6, PV = -940, FV = 1000, PMT = 12% x 1000 / 2 = 60 => Compute I/Y = 7.27% (semi-annual)
=> Annual YTM = 7.27% x 2 = 14.54%
38) C is correct.
N = 12 x 2 = 24, PMT = 14% x 1000 / 2 = 70, I/Y = 13%/2 = 6.5%, FV = 1000 => Compute PV = $1,060
37) A is correct.
N = 10, PMT = 150, PV = -1250, FV = 1000 => Compute I/Y = 10.79%
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please answer all these multiple chioce questions in the
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Assume the below information to...
1)The principal amount of a bond that is repaid at the end of the loan term...
1)The principal amount of a bond that is repaid at the end of the loan term is called the bond's: A) coupon. B) face value. C) maturity. D) yield to maturity. E) coupon rate. 2) A bond with a face value of $1,000 that sells for $1,000 in the market is called a bond. A) par value B) discount C) premium D) zero coupon E) floating rate 3) A bond with a coupon rate of 6 percent that pays interest...
1) The principal amount of a bond that is repaid at the end of the loan...
1) The principal amount of a bond that is repaid at the end of the loan term is called the bond's: A) coupon B) face value. C) maturity D) yield to maturity E) coupon rate. 2) A bond with a face value of $1,000 that sells for $1.000 in the market is called a bond A) par value B) discount C) premium D) zero coupon E) floating rate 3) A bond with a coupon rate of 6 percent that pays...
6. The feature permits the issuer to repurchase bonds at a stated price prior to maturity....
6. The feature permits the issuer to repurchase bonds at a stated price prior to maturity. A. call D. capitalization 7. The thavalue of a bond is also called its face value. Bonds which sell at less face value are priced at awhile bonds which sell at greater than face value sell at a A. discount; par, premium B. premium; discount; par C par discount; premium D. coupon; premium; discount 8. If you invest $178,571 in a project that generates...
4.Which one of the following statements about the approach to bond pricing is NOT true? Select...
4.Which one of the following statements about the approach to bond pricing is NOT true? Select one: A. To calculate a bond's price, one needs to calculate the present value of the bond's expected cash flows. B. The value, or price, of any asset is the future value of its cash flows. 6.Which one of the following statements is NOT true? Select one: A. The yield to maturity of a bond is the discount rate that makes the present value...
11.2 Twin Oaks Health Center has a bond issue outstanding with a coupon rate of 7...
11.2 Twin Oaks Health Center has a bond issue outstanding with a coupon rate of 7 percent and four years remaining until maturit The par value of the bond is $1,000, and the bond pays interest annually. a. Determine the current value of the bond if present market conditions justify a 14 percent required rate of return. b. Now, suppose Twin Oaks's four-year bond had semiannual coupon payments. What would be its current value? (Assume a 7 percent semiannual required...
Please explain how this answer was determined using formulas or a financial calculator if applicable. Especially...
Please explain how this answer was determined using formulas or
a financial calculator if applicable. Especially part A.
Thanks!
8. Croft Inc, bonds have a par value of $1,000. The bonds have a 4% coupon rate and will mature in 10 years. Assume the bond is semi-annual a. Calculate the price if the yield to maturity on the bonds is 7, 8, and 9 percent, respectively. b. Explain the impact on price if the required rate of return decreases. c....
asap ) What annual percentage rate (APR) would Rayne need to earn if she deposits S1,000...
asap
) What annual percentage rate (APR) would Rayne need to earn if she deposits S1,000 per month into an account beginning one month from today in order to have a total of S1,000,000 in 30 years? A) 5.98% B) 6.55% C) 4.87% D) 6.14% 10) Jia borrows S50,000 at 10 percent annually compounded interest to be repaid in four equal annual installments. The actual end-of-year loan payment is A) $10,774 B) S12,500 C) $14.340 D) S15,773 11) How long...
please show how to calculate with financial calculator. Question 3. Jones Corporation has zero coupon bonds on the m...
please show how to calculate with financial calculator.
Question 3. Jones Corporation has zero coupon bonds on the market with a par of s1,000 and 8 years left to maturity. If the market interest rate on these bonds is 6 percent what is the current bond price? (Use the semi-annual interest payment model.) Question 4. Wilson Corporation has 5 percent coupon bonds on the market with a par of $1,000 and 6 years left to maturity. The bonds make annual...
Please use the information at the to answer the bottom. The options for the "Now, consider..."...
Please use the information at
the to answer the bottom. The options for the "Now, consider..."
paragraph is as follows:
1.) its intrinsic value of... ($741, $1,111, $648, $926).
2.) (rounded to the nearest whole dollar) is... (less than,
equal to, greater than)
3.) so that the bond is... (trading at par, trading at a
discount, trading at a premium)
Will make sure to thumbs up if accurate, thank you!
Complete the following table by identifying the appropriate corresponding variables...
Twin Oaks Health Center has a bond issue outstanding with a coupon rate of 7 percent...
Twin Oaks Health Center has a bond issue outstanding with a coupon rate of 7 percent and four years remaining until maturity. The par value of the bond is $1,000, and the bond pays Interest annually. a. Determine the current value of the bond if present market conditions justify a 14 percent required rate of retur. b. Now, suppose Twin Oaks' four-year bond had semiannual coupon payments. What would be its current value? (Assume a 7 percent semiannual required rate...
1)The principal amount of a bond that is repaid at the end of the loan term is called the bond's: A) coupon. B) face value. C) maturity. D) yield to maturity. E) coupon rate. 2) A bond with a face value of $1,000 that sells for $1,000 in the market is called a bond. A) par value B) discount C) premium D) zero coupon E) floating rate 3) A bond with a coupon rate of 6 percent that pays interest...
1) The principal amount of a bond that is repaid at the end of the loan term is called the bond's: A) coupon B) face value. C) maturity D) yield to maturity E) coupon rate. 2) A bond with a face value of $1,000 that sells for $1.000 in the market is called a bond A) par value B) discount C) premium D) zero coupon E) floating rate 3) A bond with a coupon rate of 6 percent that pays...
6. The feature permits the issuer to repurchase bonds at a stated price prior to maturity. A. call D. capitalization 7. The thavalue of a bond is also called its face value. Bonds which sell at less face value are priced at awhile bonds which sell at greater than face value sell at a A. discount; par, premium B. premium; discount; par C par discount; premium D. coupon; premium; discount 8. If you invest $178,571 in a project that generates...
11.2 Twin Oaks Health Center has a bond issue outstanding with a coupon rate of 7 percent and four years remaining until maturit The par value of the bond is $1,000, and the bond pays interest annually. a. Determine the current value of the bond if present market conditions justify a 14 percent required rate of return. b. Now, suppose Twin Oaks's four-year bond had semiannual coupon payments. What would be its current value? (Assume a 7 percent semiannual required...
Please explain how this answer was determined using formulas or
a financial calculator if applicable. Especially part A.
Thanks!
8. Croft Inc, bonds have a par value of $1,000. The bonds have a 4% coupon rate and will mature in 10 years. Assume the bond is semi-annual a. Calculate the price if the yield to maturity on the bonds is 7, 8, and 9 percent, respectively. b. Explain the impact on price if the required rate of return decreases. c....
asap
) What annual percentage rate (APR) would Rayne need to earn if she deposits S1,000 per month into an account beginning one month from today in order to have a total of S1,000,000 in 30 years? A) 5.98% B) 6.55% C) 4.87% D) 6.14% 10) Jia borrows S50,000 at 10 percent annually compounded interest to be repaid in four equal annual installments. The actual end-of-year loan payment is A) $10,774 B) S12,500 C) $14.340 D) S15,773 11) How long...
please show how to calculate with financial calculator.
Question 3. Jones Corporation has zero coupon bonds on the market with a par of s1,000 and 8 years left to maturity. If the market interest rate on these bonds is 6 percent what is the current bond price? (Use the semi-annual interest payment model.) Question 4. Wilson Corporation has 5 percent coupon bonds on the market with a par of $1,000 and 6 years left to maturity. The bonds make annual...
Please use the information at
the to answer the bottom. The options for the "Now, consider..."
paragraph is as follows:
1.) its intrinsic value of... ($741, $1,111, $648, $926).
2.) (rounded to the nearest whole dollar) is... (less than,
equal to, greater than)
3.) so that the bond is... (trading at par, trading at a
discount, trading at a premium)
Will make sure to thumbs up if accurate, thank you!
Complete the following table by identifying the appropriate corresponding variables...
Twin Oaks Health Center has a bond issue outstanding with a coupon rate of 7 percent and four years remaining until maturity. The par value of the bond is $1,000, and the bond pays Interest annually. a. Determine the current value of the bond if present market conditions justify a 14 percent required rate of retur. b. Now, suppose Twin Oaks' four-year bond had semiannual coupon payments. What would be its current value? (Assume a 7 percent semiannual required rate...
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