Homework Answers
| Face Value =$25,000 | |||
| Semi-annual Interest Payment =$25,000*10%*6/12 =$1,250 | |||
| Contract Interest Rate =10%(5% for semi-annual) | |||
| Market Interest Rate =12%(6% for semi-annual) | |||
| Years till Bond mature =10 Years(20 semi-annual period) | |||
| For Interest PV of $1 will be used | |||
| For Principal PV of Annuity for $1 will be used | |||
| Face Amount | $25,000 | ||
| Interest Payment | $25,000*10%*6/12 =$1,250 | ||
| Market Interest rate per period | 6.00% | ||
| Cash Flow | Table Value(PV of 6% for 20 period) | Amount | Present Value |
| PV of Interest | 11.46992 | $1,250 | $14,337 |
| PV of Principal | 0.3118 | $25,000 | $7,795 |
| PV of Bonds Payable(Issue Price) | $22,132 | ||
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7.4
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7.3
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The following are examples of how it must done: Exactly one year ago, Harv bought 500...
The following are examples of how it must done:
Exactly one year ago, Harv bought 500 shares of Primer Corp stock for $40.95. He plans on selling all of the shares today at the current market price of $37.75. Over the last year, Primer Corp. paid out dividends of $0.75 per share on its common stock. What is Harv's holding period return for the year on Primer Corp. stock? Submit your answer as a percentage and round to two decimal...
0. Read examples 6 and 7 in the text 1. Write an instruction describing amortization tables in your words. Tell what information in the columns, how the information in the three main column is calcul...
0. Read examples 6 and 7 in the text
1. Write an instruction describing amortization tables in your
words. Tell what information in the columns, how the information in
the three main column is calculated, and why it is useful, Do not
use specific numbers, mathematical symbols, or excel functions, or
cell references, Be sure to explain the calculations for the three
columns.
2. Find the median home price for a city where you would like to
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QS 10-15A Computing bond price C2 Compute the selling price of 10%, 10-year bonds with a...
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Chapter 10 Homework Saved Citywide Company issues bonds with a par value of $83,000 on their...
Chapter 10 Homework Saved Citywide Company issues bonds with a par value of $83,000 on their stated issue date. The bonds mature in nine years and pay 11% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 10%. (Table B.1, Table B.2. Table B.3, and Table B.4 (Use appropriate factor(s) from the tables provided.) points 1. What is the amount of each semiannual interest payment for these bonds? 2. How many semiannual...
need help answering question, pls calculation if possible Garcia Company issues 9.00%, 15-year bonds with a...
need help answering question, pls calculation if possible
Garcia Company issues 9.00%, 15-year bonds with a par value of $380,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6.00%, which implies a selling price of 129 3/8. Confirm that the bonds' selling price is approximately correct. Use present value Table B1 and Table B.3 in Appendix B. (Round all table values to 4 decimal places, and use the rounded table values in...
7.4
Unlike the coupon interest rate, which is fixed, a bond's yield varies from day to day depending on market conditions. To be most useful, it should give us an estimate of the rate of return an investor would earn if that investor purchased the bond today and held it for its remaining life. There are three different yield calculations: Current yield, yield to maturity, and yield to call. A bond's current yield is calculated as the annual interest payment...
7.3
value of the cash flows the asset is expected to produce. For a bond with fixed annual coupons, its value is equal to the present value of all its annual interest payments and its maturity The value of any financial asset is the present value as shown in the equation below: INT (1+r)^ M (1+ra) Bond's value=Ve=INT + INT. +...+ (1+ra)' (1+ra) INT + M = (1+ra)* (1+ra)N We could use the valuation equation shown above to solve for...
The following are examples of how it must done:
Exactly one year ago, Harv bought 500 shares of Primer Corp stock for $40.95. He plans on selling all of the shares today at the current market price of $37.75. Over the last year, Primer Corp. paid out dividends of $0.75 per share on its common stock. What is Harv's holding period return for the year on Primer Corp. stock? Submit your answer as a percentage and round to two decimal...
0. Read examples 6 and 7 in the text
1. Write an instruction describing amortization tables in your
words. Tell what information in the columns, how the information in
the three main column is calculated, and why it is useful, Do not
use specific numbers, mathematical symbols, or excel functions, or
cell references, Be sure to explain the calculations for the three
columns.
2. Find the median home price for a city where you would like to
live. Tell how...
QS 10-15A Computing bond price C2 Compute the selling price of 10%, 10-year bonds with a par value of $390,000 and semiannual interest payments. The annual market rate for these bonds is 12%. Use present value Table B.1 and Table B.3 in Appendix B. (Round all table values to 4 decimal places, and use the rounded table values in calculations.) Table Value Present Value Cash Flow $390,000 par (maturity) value $19,500 interest payment Price of Bond TABLE B.1* Present Value...
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need help answering question, pls calculation if possible
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