Yield to maturity = RATE(number_of_periods, payment_per_period, present_value, [future_value], [end_or_beginning], [rate_guess]) * number of compounds per year
= RATE(10,12000*0.08/2,-8500,12000) * 2
= 16.86%
Hence semiannual rate = 16.86%/2 = 8.43%
Question 2 (25 points) A mortgage bond issued by Automation Engineering is for sale for $8,500....
Question 2 (25 points) A mortgage bond issued by Automation Engineering is for sale for $8,500. The bond has a face value of $12,000 with a coupon rate of 8% per year, payable semiannually. What semiannual rate of return will be realized if the purchaser holds the bond to maturity 5 years from now?
A mortgage bond issued by Automation Engineering is for sale for $8,900. The bond has a face value of $10,000 with a coupon rate of 5% per year, payable annually. What rate of return will be realized if the purchaser holds the bond to maturity 9 years from now? The rate of return will be % per year.
A mortgage bond issued by Automation Engineering is for sale for $7.700. The bond has a face value of $10,000 with a coupon rate of 6% per year, payable semi-annually. What rate of retum will be realized if the purchaser holds the bond to maturity 6 years from now? The rate of retum will be per year.
I need help with question 7.50. I looked at the solution for this one but I don't know if the solution is right or wrong because so many people did not find the solution helpful 205 Exercises for Spreadsheets $10,000 and a coupon rate of 85 per year. payable semiannually? .45 7.46 If you receive a 55000 bond as a graduation present and the bond will pay you $75 interest every 3 months for 20 years, what is the bond...
8. During recessionary periods, bonds that were issued many years ago have a higher coupon rate than currently issued bonds. Therefore, they may sell at a premium, a price higher than their face value, because of currently low coupon rates. A $50,000 bond that was issued 15 years ago is for sale for $58,000. What rate of return per year will a purchaser make if the bond coupon rate is 20% per year payable semi-annually, and the bond is due...
Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 12% coupon rate, payable semiannually. The bonds mature in 11 years, have a face value of $1,000, and a yield to maturity of 8%. What is the price of the bonds? Round your answer to the nearest cent. $______?
Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 10% coupon rate, payable semiannually. The bonds mature in 16 years, have a face value of $1,000, and a yield to maturity of 9%. What is the price of the bonds? Round your answer to the nearest cent.
Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 11% coupon rate, payable semiannually. The bonds mature in 12 years, have a face value of $1,000, and a yield to maturity of 10%. What is the price of the bonds? Round your answer to the nearest cent.
Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 6% coupon rate, payable semiannually. The bonds mature in 16 years, have a face value of $1,000, and a yield to maturity of 11%. What is the price of the bonds? Round your answer to the nearest cent.
Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 12% coupon rate, payable semiannually. The bonds mature in 15 years, have a face value of $1,000, and a yield to maturity of 9%. What is the price of the bonds? Round your answer to the nearest cent.