Please round to 6 decimal places, thank you.
Homework Answers
Market rate = $10,000 * 103.25% = $10,325
Semi annual coupon = $10,000 * 5%/2 = $250
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Please round to 6 decimal places, thank you.
Use the method of averages to find the...
Round to two decimal places (Yield to maturity) You own a 15-year bond that pays 15...
Round to two decimal places
(Yield to maturity) You own a 15-year bond that pays 15 percent interest annually. The par value of the bond is $1,000 and the market price of the bond is $950. What is the yield to maturity of the bond? The yield to maturity of the bond is [M (Round to two decimal places.)
6. A $10,000, 6% bond with semi-annual coupons is redeemable at par. What is the purchase...
6. A $10,000, 6% bond with semi-annual coupons is redeemable at par. What is the purchase price to yield 7.5% compounded semi-annually (a) nine years before maturity? (b) fifteen years before maturity? (a) The purchase price is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The purchase price is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six...
A $51,000, 88% bond redeemable at 104 with semi-annual coupons bought eleven years before matu...
A $51,000, 88% bond redeemable at 104 with semi-annual coupons bought eleven years before maturity to yield 9% compounded semi-annually is sold three years before maturity at 102.25. Find the gain or loss on the sale of the bond. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Please help thank you. A $87,000 mortgage is to be amortized by making monthly payments for...
Please help thank you.
A $87,000 mortgage is to be amortized by making monthly payments for 15 years. Interest is 8.1% compounded semi-annually for a seven-year term. (a) Compute the size of the monthly payment. (b) Determine the balance at the end of the seven-year term. (c) If the mortgage is renewed for a seven-year term at 7% compounded semi-annually, what is the size of the monthly payment for the renewal term? (a) The size of the monthly payment is...
Hello, Can you please help with this problem and provide explanation for the correct answer? Thank...
Hello, Can you please help with this problem and provide explanation for the correct answer? Thank you Harold Reese must choose between two bonds: Bond X pays $70 annual interest and has a market value of $845. It has 10 years to maturity. Bond Z pays $60 annual interest and has a market value of $870. It has five years to maturity. Assume the par value of the bonds is $1,000. a. Compute the current yield on both bonds. (Do...
A 54542.16 investment matures in 6 years, 2 months. Find the maturity value if interest is...
A 54542.16 investment matures in 6 years, 2 months. Find the maturity value if interest is 2.9% per annum compounded semi-annually The maturity value is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
A 20-year bond issue of 5, 800 000 and bearing interest at 66% payable annually is...
A 20-year bond issue of 5, 800 000 and bearing interest at 66% payable annually is sold to yield 6.3% compounded semi- annually. What is the issue price of the bonds? The purchase price of the bond is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Consider a 2-year $1000 par value bond that pays semi-annual coupons at a rate of 42)...
Consider a 2-year $1000 par value bond that pays semi-annual coupons at a rate of 42) purchased for $1058.82 6%. Suppose that the bond was (a) Use the method of averages to approximate the effective yield rate compounded semi-annually. State the result as a percent to 1 decimal place % compounded semi-annually (b) Complete the chart below by performing 2 iterations of the bisection method to approximate the effective yield rate compounded semi-annually [Note: For the initial interval [a(0),b(0) use...
a. What is the coupon rate for the following bond? (Round to two decimal places.) Yield...
a. What is the coupon rate for the following bond? (Round to two decimal places.) Yield to Coupon Years to Coupon Frequency Maturity Maturity Par Value Rate Price $5,000.00 10 10% $5,630.59 monthly i Data Table - (Click on the following icon in order to copy its contents into a spreadsheet.) Yield to Coupon Years to Coupon Frequency Maturity Par Value Rate Maturity Price $5,000.00 ? 10 10% $5,630.59 $1,042.92 monthly $1,000.00 6% quarterly 5 $1,000.00 10 8% $1,067.10 annual...
Consider two bonds. The first is a 6% coupon bond with six years to maturity, and...
Consider two bonds. The first is a 6% coupon bond with six years to maturity, and a yield to maturity of 4.5% annual rate, compounded semi-annually. The second bond is a 2% coupon bond with six years to maturity and a yield to maturity of 5.0%, annual rate, compounded semi-annually. 1. Calculate the current price per $100 of face value of each bond. (You may use financial calculator to do question 1 and 2, I'm just unsure how to use...
Round to two decimal places
(Yield to maturity) You own a 15-year bond that pays 15 percent interest annually. The par value of the bond is $1,000 and the market price of the bond is $950. What is the yield to maturity of the bond? The yield to maturity of the bond is [M (Round to two decimal places.)
6. A $10,000, 6% bond with semi-annual coupons is redeemable at par. What is the purchase price to yield 7.5% compounded semi-annually (a) nine years before maturity? (b) fifteen years before maturity? (a) The purchase price is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The purchase price is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six...
Please help thank you.
A $87,000 mortgage is to be amortized by making monthly payments for 15 years. Interest is 8.1% compounded semi-annually for a seven-year term. (a) Compute the size of the monthly payment. (b) Determine the balance at the end of the seven-year term. (c) If the mortgage is renewed for a seven-year term at 7% compounded semi-annually, what is the size of the monthly payment for the renewal term? (a) The size of the monthly payment is...
A 54542.16 investment matures in 6 years, 2 months. Find the maturity value if interest is 2.9% per annum compounded semi-annually The maturity value is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Consider a 2-year $1000 par value bond that pays semi-annual coupons at a rate of 42) purchased for $1058.82 6%. Suppose that the bond was (a) Use the method of averages to approximate the effective yield rate compounded semi-annually. State the result as a percent to 1 decimal place % compounded semi-annually (b) Complete the chart below by performing 2 iterations of the bisection method to approximate the effective yield rate compounded semi-annually [Note: For the initial interval [a(0),b(0) use...
a. What is the coupon rate for the following bond? (Round to two decimal places.) Yield to Coupon Years to Coupon Frequency Maturity Maturity Par Value Rate Price $5,000.00 10 10% $5,630.59 monthly i Data Table - (Click on the following icon in order to copy its contents into a spreadsheet.) Yield to Coupon Years to Coupon Frequency Maturity Par Value Rate Maturity Price $5,000.00 ? 10 10% $5,630.59 $1,042.92 monthly $1,000.00 6% quarterly 5 $1,000.00 10 8% $1,067.10 annual...
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