Vic Zaloom bought a corporate bond from IBEM Corporation for $100,000. The face value of the...
Vic Zaloom bought a corporate bond from IBEM Corporation for $100,000. The face value of the bond is $100,000 and will mature in twenty years. A $2,500 dividend is expected to be paid every quarter. If Vic plans to keep the bond until maturity, determine the effective rate of return he is getting on this investment
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Vic Zaloom bought a corporate bond from IBEM Corporation for
$100,000. The face value of the...
Mike buys a corporate bond with a face value of $1,000 for $800. The bond matures...
Mike buys a corporate bond with a face value of $1,000 for $800. The bond matures in 10 years and pays a coupon interest rate of 5%. Interest is paid every quarter. a. Determine the effective rate of return if Mike holds the bond to maturity? b. What effective interest rate will Mike get if he keeps the bond for only 5 years and sells it for $900?
A company holds a $100,000 face value corporate bond, bought January 1, 2019, paying 3% annually...
A company holds a $100,000 face value corporate bond, bought January 1, 2019, paying 3% annually on December 31, and maturing December 31, 2021. The company paid $102,884 for the bond, to yield 2%. The company categorizes the bond as a held-to-maturity investment, and its accounting year ends December 31. Round answers to the nearest dollar. What is the approximate net entry to record receipt of interest and principal on December 31, 2021, assuming no impairment on the bond throughout...
A corporate bond with a face value of $100,000 was issued six years ago and there...
A corporate bond with a face value of $100,000 was issued six years ago and there are nine years remaining until maturity. The bond pays semi-annual coupon payments of $4500, the coupon rate is 9% p.a. paid twice yearly and rates in the marketplace are 8% p.a. compounded semi-annually. What is the value of the bond today?
2. Kate bought a bond at face value of $1000 at inception in the market. The...
2. Kate bought a bond at face value of $1000 at inception in the market. The life of the bond is 20 yeats, coupons are paid yearly with bond rate of 5%. She holds it for 8 years and sells it at a price that yields is 4% on her investment. What would the yield for the second owner be if the second owner holds it until maturity? l anded
(Bond valuation) Calculate the value of a bond that will mature in 17 years and has...
(Bond valuation) Calculate the value of a bond that will mature in 17 years and has a $1,000 face value. The annual coupon interest rate is 11 percent, and the investor's required rate of return is 14 percent The value of the bond is S828.27 (Round to the nearest cent. (Bond valuation) Calculate the value of a bond that will mature in 14 years and has a $1.000 face value. The annual coupon interest rate is 5 percent, and the...
2. William bought a corporate bond for S5.450- The face value of the bond was $7,000...
2. William bought a corporate bond for S5.450- The face value of the bond was $7,000 and he received semi- annual coupon payments at a rate of 4% per year until the bond matured (5 years romthe purchase The coupon payment that William received each period and ROR that William earned on his purchase are closest to _a)-$280,4.85%- $280, 9.94%- c) $140, 9.94% d) $140, 4.85% e) $140, 9.82% 4)-$280,-98296- -gr-s 109,4:33%- -_-.h), $ 109,-8.85%- i)-6218,8;77%. ._j)-$218;4.33%-- 4'pen 5,4So
(Bond valuation) At the beginning of the year, you bought $1,000 per value corporate bond with an yed to maturity o...
(Bond valuation) At the beginning of the year, you bought $1,000 per value corporate bond with an yed to maturity of 13 percent. Today the bond sols for $770 maturity date of 18 years. When you bought the bond, it had an expected What did you pay for the bond b. If you sold the bond at the end of the youwhat would be your one period rotum on the investments that you did not receive y orest payment during...
Butler purchased a bond on January 1, 2018, for $150,000. The bond has a face value...
Butler purchased a bond on January 1, 2018, for $150,000. The bond has a face value of $150,000 and matures in 10 years. The bond pays interest on June 30 and December 31 at a 2% annual rate. Butler plans on holding the investment until maturity. Read the requirements. Requirement 1. Journalize the 2018 transactions related to Butler's bond investment. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries.) Begin by journalizing Butler's investment on...
1) You need to determine the market value of a $1,000 face value bond maturing in...
1) You need to determine the market value of a $1,000 face value bond maturing in 5 years. The market yield (interest rate) for this type of bond is 3.1%. What is its market value? (Round to the nearest penny). 2) A year ago, you purchased a $1,000 face value bond for $1024. A year later you sold the bond for $1,007 after receiving a coupon payment of $55. What was your rate of capital gain? (Answer in tenth of...
1) You need to determine the market value of a $1,000 face value bond maturing in...
1) You need to determine the market value of a $1,000 face value bond maturing in 5 years. The market yield (interest rate) for this type of bond is 3.1%. What is its market value? (Round to the nearest penny). 2) A year ago, you purchased a $1,000 face value bond for $1024. A year later you sold the bond for $1,007 after receiving a coupon payment of $55. What was your rate of capital gain? (Answer in tenth of...
Mike buys a corporate bond with a face value of $1,000 for $800. The bond matures in 10 years and pays a coupon interest rate of 5%. Interest is paid every quarter. a. Determine the effective rate of return if Mike holds the bond to maturity? b. What effective interest rate will Mike get if he keeps the bond for only 5 years and sells it for $900?
2. Kate bought a bond at face value of $1000 at inception in the market. The life of the bond is 20 yeats, coupons are paid yearly with bond rate of 5%. She holds it for 8 years and sells it at a price that yields is 4% on her investment. What would the yield for the second owner be if the second owner holds it until maturity? l anded
(Bond valuation) Calculate the value of a bond that will mature in 17 years and has a $1,000 face value. The annual coupon interest rate is 11 percent, and the investor's required rate of return is 14 percent The value of the bond is S828.27 (Round to the nearest cent. (Bond valuation) Calculate the value of a bond that will mature in 14 years and has a $1.000 face value. The annual coupon interest rate is 5 percent, and the...
2. William bought a corporate bond for S5.450- The face value of the bond was $7,000 and he received semi- annual coupon payments at a rate of 4% per year until the bond matured (5 years romthe purchase The coupon payment that William received each period and ROR that William earned on his purchase are closest to _a)-$280,4.85%- $280, 9.94%- c) $140, 9.94% d) $140, 4.85% e) $140, 9.82% 4)-$280,-98296- -gr-s 109,4:33%- -_-.h), $ 109,-8.85%- i)-6218,8;77%. ._j)-$218;4.33%-- 4'pen 5,4So
(Bond valuation) At the beginning of the year, you bought $1,000 per value corporate bond with an yed to maturity of 13 percent. Today the bond sols for $770 maturity date of 18 years. When you bought the bond, it had an expected What did you pay for the bond b. If you sold the bond at the end of the youwhat would be your one period rotum on the investments that you did not receive y orest payment during...
Butler purchased a bond on January 1, 2018, for $150,000. The bond has a face value of $150,000 and matures in 10 years. The bond pays interest on June 30 and December 31 at a 2% annual rate. Butler plans on holding the investment until maturity. Read the requirements. Requirement 1. Journalize the 2018 transactions related to Butler's bond investment. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries.) Begin by journalizing Butler's investment on...
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