A bond holder does not have ownership right, dividend right , 27000 maturity value right or $6 per year right.
But a bond holder have the right to receive $4500 at maturity
so answer is c) The right to receive $4500 at maturity
A bondholder that owns a $4,500, 6%, 6-year bond has O The right to receive $27.000...
Question: A bondholder that csrries a $51,000, 6%, 15 year term bond has A) The right to recieve $1,000 at maturity B) Ownership rights on the bond-issuing entity. C) The right to recieve $60 per month until maturity D) The right to recieve $1,900 at maturity E) The right to recieve $600 per year until maturity
A bondholder that owns $1,000, 10%, 10 year bond has
1. (12 points) A bondholder owns one corporate bond that pays semi-annual coupons, has 6 percent coupon rate, and a face value of $1000. The bond has 5 years to maturity, and it currently traded at par. (1) Based on the information that the bond is traded at par, what is the YTM of the bond currently? (2) If the YTM of the bond rises to 7 percent one year later, what is the new price of the bond? (3)...
An AT&T bond carries a coupon rate of 6%, has 7 years until maturity, and sells at a yield-to-maturity (YTM) of 8%. What interest payments do bondholders receive each year? At what price does the bond sell? (Assume annual interest payments.) What would likely happen to the bond price if the yield-to-maturity fell to 6%?
Page 2 of 6 Problem 2 A certain U.S. Treasury bond that matures in 15 years has a $10,000 face value. This means that the bondholder will receive $10,000.00 cash when the bond's maturity date is reached. The bond pays an annual nominal interest of 8% of its face value in semi-annual installments starting at the end of the 1st semi-annual period. a) Draw a cash flow diagram showing bond payments. b) What is its present worth. PW, ifthe prevailing...
1. Special Venture Co. 10-year convertible bond pays a 6% semi-annual coupon (face value is $1000). The yield to maturity is 10% on debt of this quality. Surrendering the bond under the conversion terms allows the bondholder to receive 50 shares of stock. What is the market value of the convertible bond if the stock trades at $21 per share? A. $750.76 B. $754.22 C. $1,050.00 D. $1,500.00 E. $1,754.22 2. Hartford Thatching is an unlevered firm with 30 million...
a) A level-coupon bond carries a coupon rate of 6 percent, payable semiannually, has 10 years until maturity, and the yield to maturity is 8 percent. (i) What interest payments do bondholders receive each year? (ii) At what price does the bond sell? (iii) What will happen to the bond price if the yield to maturity falls to 5 percent? b) The British government’s outstanding perpetual bonds have annual coupon payments of $25, payable annually. The market interest rate today...
25 A corporate bond has a face value of $10,000, a bond interest rate of 6% per year payable semiannually, and a maturity date of 20 years from now. If a person purchases the bond for $9000 when the interest rate in the marketplace is 8% per year, compounded semiannually. the size and frequency of the interest payments the person will receive are closest to (2.5 Points) 5400 every 6 months $270 every 6 months $360 every 6 months $300...
You are considering buying a $8,000 bond with a bond rate 6% paying once per year and a 15 year maturation period. You would like 10% annual yield and you plan to keep until maturity. How much should you pay for the bond?
Grummon Corporation has issued zero-coupon corporate bonds with a five-year maturity (assume $100 face value bond). Investors believe there is a 15% chance that Grummon will default on these bonds. If Grummon does default, investors expect to receive only 40 cents per dollar they are owed. If investors require a 6% expected return on their investment in these bonds, what will be the price and yield to maturity on these bonds?Note: Assume annual compounding.