Determine the purchase price at the indicated time before maturity of the following bond redeemed at...
Determine the purchase price at the indicated time before maturity of the following bond redeemed at par shown in the table below.
Par Value $4000
Bond Rate Payable Semi-Annually 10.5%
Time Before Maturity 7 years
Yield Rate 9.75%
Conversion Period semi-annually
The purchase price of the bond is ?
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Determine the purchase price at the indicated time before
maturity of the following bond redeemed at...
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...
Please round to 6 decimal places, thank you. Use the method of averages to find the...
Please round to 6 decimal places, thank you.
Use the method of averages to find the approximate yield rate for the bond shown in the table below. The bond is to be redeemed at par. Face Value Bond Rate Payable Semi-annually Time Before Maturity Market Quotation 103.25 $10,000 5% 6 years The yield rate is %. (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)
2. Determine the Price of the Bond at each time period. If you purchase the bond...
2. Determine the Price of the Bond at each time period. If you purchase the bond today (at time =0) and hold it until maturity, what is the interest yield, capital gain yield, and total return the you will earn? Time Periods Remaining Price Face Value Coupon Rate Discount Rate Time $1,000 8.00% 6.00% 3 years w 3. Beans Corp just paid a dividend of S4.00. The dividend will grow at a rate of 15% for 2 years and then...
A bond that has a face value of $2,500 and coupon rate of 4.80% payable semi-annually...
A bond that has a face value of $2,500 and coupon rate of 4.80% payable semi-annually was redeemable on July 1, 2021. Calculate the purchase pric of the bond on February 10, 2015 when the yield was 5.30% compounded semi-annually. Round to the nearest cent A $8,000 bond that carries a 3.50% coupon rate payable semi-annually is purchased 6 years before maturity when the yield rate was 4.50% compounded semi-annually. a. Calculate the purchase price of the bond. $0.00 Round...
Yield to maturity a spreadsheet.) The bond shown in the following table pays interest annually. (Click...
Yield to maturity a spreadsheet.) The bond shown in the following table pays interest annually. (Click on the icon here in order to copy the contents of the data table below into Coupon interest rate Years to maturity Par value $1,000 Current value $1,230 a. Calculate the yield to maturity (VTM) for the bond b. What relationship exists between the coupon interest rate and yield to maturity and the par value and market value of a bond? Explain a. The...
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. Suppose you purchase a 20-year,8% coupon bond with a yield to maturity of 10%. For...
a. Suppose you purchase a 20-year,8% coupon bond with a yield to maturity of 10%. For a face value of $1000, what should be the initial price of the bond assuming that the bond is paying interest semi-annually? b. If the bond’s yield to maturity changes to be 12%, what will its price be five years later? c. If you purchased the bond at THE PRICE YOU COMPUTED AT (a) and sold it 5 years later, what would the rate...
The market price of a semi-annual pay bond is $989.69. It has 24.00 years to maturity...
The market price of a semi-annual pay bond is $989.69. It has 24.00 years to maturity and a yield to maturity of 7.10%. What is the coupon rate? The market price of a semi-annual pay bond is $975.36. It has 14.00 years to maturity and a coupon rate of 6.00%. Par value is $1,000. What is the yield to maturity? The market price of a semi-annual pay bond is $963.19. It has 14.00 years to maturity and a coupon rate...
Consider a 2-year $4000 bond that's redeemable at par and pays semi-annual coupons at a rate...
Consider a 2-year $4000 bond that's redeemable at par and pays semi-annual coupons at a rate of c2) 8%. 70. (a) Suppose that the yield rate is 4% compounded annually. Determine: The purchase price of the bond. P = $ %3D The bond's duration to 3 decimals. D: years %3| Note: Use the purchase price to the closest cent in your duration calculation. (b) Suppose that the yield rate is 4% compounded semi-annually. Determine: The purchase price of the bond....
-What is the yield to call of a 30-year to maturity bond that pays a coupon...
-What is the yield to call of a 30-year to maturity bond that pays a coupon rate of 11.98 percent per year, has a $1,000 par value, and is currently priced at $918? The bond can be called back in 7 years at a call price $1,089. Assume annual coupon payments. -Marco Chip, Inc. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 17 years and a yield to maturity of 10.23 percent,...
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...
Please round to 6 decimal places, thank you.
Use the method of averages to find the approximate yield rate for the bond shown in the table below. The bond is to be redeemed at par. Face Value Bond Rate Payable Semi-annually Time Before Maturity Market Quotation 103.25 $10,000 5% 6 years The yield rate is %. (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)
2. Determine the Price of the Bond at each time period. If you purchase the bond today (at time =0) and hold it until maturity, what is the interest yield, capital gain yield, and total return the you will earn? Time Periods Remaining Price Face Value Coupon Rate Discount Rate Time $1,000 8.00% 6.00% 3 years w 3. Beans Corp just paid a dividend of S4.00. The dividend will grow at a rate of 15% for 2 years and then...
A bond that has a face value of $2,500 and coupon rate of 4.80% payable semi-annually was redeemable on July 1, 2021. Calculate the purchase pric of the bond on February 10, 2015 when the yield was 5.30% compounded semi-annually. Round to the nearest cent A $8,000 bond that carries a 3.50% coupon rate payable semi-annually is purchased 6 years before maturity when the yield rate was 4.50% compounded semi-annually. a. Calculate the purchase price of the bond. $0.00 Round...
Yield to maturity a spreadsheet.) The bond shown in the following table pays interest annually. (Click on the icon here in order to copy the contents of the data table below into Coupon interest rate Years to maturity Par value $1,000 Current value $1,230 a. Calculate the yield to maturity (VTM) for the bond b. What relationship exists between the coupon interest rate and yield to maturity and the par value and market value of a bond? Explain a. The...
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...
Consider a 2-year $4000 bond that's redeemable at par and pays semi-annual coupons at a rate of c2) 8%. 70. (a) Suppose that the yield rate is 4% compounded annually. Determine: The purchase price of the bond. P = $ %3D The bond's duration to 3 decimals. D: years %3| Note: Use the purchase price to the closest cent in your duration calculation. (b) Suppose that the yield rate is 4% compounded semi-annually. Determine: The purchase price of the bond....
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