Homework Answers
Interest rate per quarter = 6/4 = > 1.5%
Interest per quarter = 1.5% of 10,000
= $ 150 , i.e. Option A
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A $10,000 bond with 8% interest rate payable quarterly is purchased for $8000. The bond matures...
A $10,000 mortgage bond with a bond Interest rate of 18% per year, payable quarterly, was...
A $10,000 mortgage bond with a bond Interest rate of 18% per year, payable quarterly, was purchased for SABO. The bond was kept until it was due total of 5 years. What is correct equation (PWPWd-) to calculate the rate of return "1" made by the purchaser of the bond? -10,000+ 900(P/A, 1.20) + 10,000/P/F, ".201-0 -8,800 900(P/A 1,10) +10,000/P/F, 1", 10)-0 -8.800 +1800(P/A, 14.5) +10,000{P/F, 1.51-0 -5,800 +450{P/A. 1.20) +10.000{P/F, 11.201-0 ROR Analysis _Single Project Select the "best answer...
A $ 500 bond matures on March 1, 2018. Interest is 6% payable semi- annually. Find...
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...
4. You h ave purchased a 10,000-dollar bond par value for 9400 dollars. You purchased interest...
4. You h ave purchased a 10,000-dollar bond par value for 9400 dollars. You purchased interest payment. The it immediately after the previous owner received a quarterly bond rate is 8 % per year payable quarterly. You will hold the bond 5 years and sell ayment at that time. You desire a yield of 16 % per immediately after receiving thep -compounded quarterly. What will be the minimum selling price of the bond to achieve this goal?
A savvy investor paid $5,000 for a 20-year $10,000 mortgage bond that had a bond interest...
A savvy investor paid $5,000 for a 20-year $10,000 mortgage bond that had a bond interest rate of 10% per year, payable quarterly. Three years after he purchased the bond, market interest rates went down, so the bond increased in value. If the investor sold the bond for $13,000 three years after he bought it, what rate of return did the investor make per quarter and per year (nominal)? The rate of return per quarter is D % The rate...
Five $1,000 bonds having a bond rate of 8% per year payable quarterly are purchased for...
Five $1,000 bonds having a bond rate of 8% per year payable quarterly are purchased for $4,940 and kept for 6 years, at which time they are sold. Determine the selling price that yields a 6% effective annual return on the investment.
Leann just sold a $10,000 par value bond for $9,800. The bond interest rate was 5%...
Leann just sold a $10,000 par value bond for $9,800. The bond interest rate was 5% per year payable quarterly. Leann owned the bond for 3 years. The 1st interest payment she received was 3 months after she bought the bond. She sold it immediately after receiving her 12th interest payment. Leann's yield on the bond was 15% per year compounded quarterly. Determine the price she paid when she purchased the bond. $
Question 6 Leann just sold a $10,000 par value bond for $9,800. The bond interest rate...
Question 6 Leann just sold a $10,000 par value bond for $9,800. The bond interest rate was 5.5% per year payable quarterly. Leann owned the bond for 3 years. The 1st interest payment she received was 3 months after she bought the bond. She sold it immediately after receiving her 12th interest payment. Leann's yield on the bond was 11% per year compounded quarterly. Determine the price she paid when she purchased the bond. $ Carry all interim calculations to...
Question 6 (12 points) 6. A $10,000 bond that pays 10% compounded quarterly and matures in...
Question 6 (12 points) 6. A $10,000 bond that pays 10% compounded quarterly and matures in 5 years is for sale. What is the maximum that should be paid for the bond if 40% compounded quarterly is required on the bond?
Leann just sold a $10,000 par value bond for $9,800. The bond interest rate was 7%...
Leann just sold a $10,000 par value bond for $9,800. The bond interest rate was 7% per year payable quarterly. Leann owned the bond for 3 years. The 1st interest payment she received was 3 months after she bought the bond. She sold it immediately after receiving her 12th interest payment. Leann’s yield on the bond was 15% per year compounded quarterly. Determine the price she paid when she purchased the bond.
Leann just sold a $10,000 par value bond for $9,800. The bond interest rate was 5.5%...
Leann just sold a $10,000 par value bond for $9,800. The bond interest rate was 5.5% per year payable quarterly. Leann owned the bond for 3 years. The 1st interest payment she received was 3 months after she bought the bond. She sold it immediately after receiving her 12th interest payment. Leann’s yield on the bond was 10.5% per year compounded quarterly. Determine the price she paid when she purchased the bond.
A $10,000 mortgage bond with a bond Interest rate of 18% per year, payable quarterly, was purchased for SABO. The bond was kept until it was due total of 5 years. What is correct equation (PWPWd-) to calculate the rate of return "1" made by the purchaser of the bond? -10,000+ 900(P/A, 1.20) + 10,000/P/F, ".201-0 -8,800 900(P/A 1,10) +10,000/P/F, 1", 10)-0 -8.800 +1800(P/A, 14.5) +10,000{P/F, 1.51-0 -5,800 +450{P/A. 1.20) +10.000{P/F, 11.201-0 ROR Analysis _Single Project Select the "best answer...
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...
4. You h ave purchased a 10,000-dollar bond par value for 9400 dollars. You purchased interest payment. The it immediately after the previous owner received a quarterly bond rate is 8 % per year payable quarterly. You will hold the bond 5 years and sell ayment at that time. You desire a yield of 16 % per immediately after receiving thep -compounded quarterly. What will be the minimum selling price of the bond to achieve this goal?
A savvy investor paid $5,000 for a 20-year $10,000 mortgage bond that had a bond interest rate of 10% per year, payable quarterly. Three years after he purchased the bond, market interest rates went down, so the bond increased in value. If the investor sold the bond for $13,000 three years after he bought it, what rate of return did the investor make per quarter and per year (nominal)? The rate of return per quarter is D % The rate...
Five $1,000 bonds having a bond rate of 8% per year payable quarterly are purchased for $4,940 and kept for 6 years, at which time they are sold. Determine the selling price that yields a 6% effective annual return on the investment.
Leann just sold a $10,000 par value bond for $9,800. The bond interest rate was 5% per year payable quarterly. Leann owned the bond for 3 years. The 1st interest payment she received was 3 months after she bought the bond. She sold it immediately after receiving her 12th interest payment. Leann's yield on the bond was 15% per year compounded quarterly. Determine the price she paid when she purchased the bond. $
Question 6 Leann just sold a $10,000 par value bond for $9,800. The bond interest rate was 5.5% per year payable quarterly. Leann owned the bond for 3 years. The 1st interest payment she received was 3 months after she bought the bond. She sold it immediately after receiving her 12th interest payment. Leann's yield on the bond was 11% per year compounded quarterly. Determine the price she paid when she purchased the bond. $ Carry all interim calculations to...
Question 6 (12 points) 6. A $10,000 bond that pays 10% compounded quarterly and matures in 5 years is for sale. What is the maximum that should be paid for the bond if 40% compounded quarterly is required on the bond?
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