7. (5+10 points) A $1000 bond redeemable at $1050 on December 1, 2016, pays interest at...
The market price is $1050 for a 19-year bond ($1000 par value) that pays 11 percent annual interest, but makes interest payments on a semiannual basis (5.5 percent semiannually). What is the bond's yield to maturity? The bond's yield to maturity is %. (Round to two decimal places.)
● LOO A $1000 bond bearing interest at 8% payable 2 semi-annually redeemable at par on February 1, 2020, was purchased on October 12, 2013, to yield 7% compounded semi-annually. Determine the purchase price. ● LOO A $1000 bond bearing interest at 8% payable 2 semi-annually redeemable at par on February 1, 2020, was purchased on October 12, 2013, to yield 7% compounded semi-annually. Determine the purchase price.
A $25 000, 10% bond redeemable at par on December 1, 2025, is purchased on September 25, 2014, to yield 7.6% compounded semi-annually. Bond interest is payable semi-annually. Note: June 1, 2014 to December 1, 2025 = 11.5 years. 1.What is the cash price? 2. What is the accrued interest? 3.What is the quoted price?
1. A $5,000 bond, redeemable at 105 on Sep. 1, 2014, has semiannual coupons at j2 = 2r. It is purchased for $5,203.69 on March 1, 1993, to yield j2 = 12.5%. Find r. 2. A bond with $80 annual coupons is purchased at a discount to yield j2 = 7.5%. The write-up for the first year is $22. What was the purchase price?
A $1,000 par value 10-year bond with annual coupons is redeemable at $1,055, and has a purchase price of $986 at a yield rate of 4% per annum. The coupons are non-level and increase by $2 per year. (a) Find the amount of the first coupon payment. Round your answer to the nearest 0.01. (b) Using a spreadsheet software, construct a bond amortization schedule for all the years. You may use your own spreadsheet template. (c) Suppose that the issue...
A $ 500 bond matures on March 1, 2018. Interest is 6% payable semi- annually. Find the purchase price of the bond on September 1, 2012, to yield 7.5% compounded semi- annually. A $ 25 000, 7% bond is purchased twelve years before maturity to yield 5% compounded semi- annually. If the bond interest is payable semi- annually, what is the purchase price of the bond? A $ 100 000, 8% bond redeemable at par with quarterly coupons is purchased...
Today is 1 January 2019. Lucy is planning to purchase a 10-year 4.15% p.a. Treasury bond with a face value of $100. The maturity date of the treasury bond is 1 January 2029. The bond is redeemable at par. (25 marks) a. [12 marks] • Use Goal Seek to find Lucy’s yield to maturity (express your answer as a j2), if the purchase price is $96.5. • Use Goal Seek to find Lucy’s net yield to maturity, that is after...
A $50,000 bond bearing interest at 5.5% payable semi-annually is redeemable at par on August 10, 2033. The bond is sold on the primary market on December 10, 2013, to yield 5% compounded semi-annually. Determine the amount of discount or premium on the sale of the bond.
1 XYZ issues a two vear 10,000 bond with a 7% stated rate sold to yield a 9% on January 1, 2016. Interest payable on December 31. a. Calculate the issue price of the bond to yield 9% b. Create an amortization schedule for the two years. c. Record the issuing of the bond, both interest payments and the payment of the bond at maturity date in the financial statements effect template on the answer sheet.
Part 2--Sample Bond problem on recording bonds payable: On January 1, 2016, Shirley Corporation purchased 10% bonds dated January 1, 2016, with a face amount of $10 million. The bonds mature in 2025 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Required: 1. Determine the price of the bonds at January 1, 2016. 2. Prepare the journal entry to record the bond purchase by...