Homework Answers
rate positively ..
| We have to use financial calculator to solve this | |||||
| put in calculator - | |||||
| FV | 1000 | ||||
| PMT | 1000*8%/2 | 40 | |||
| I | 6%/2 | 3.00% | |||
| N | 2*2 | 4 | |||
| Compute PV | ($1,037.17) | ||||
| Ans = | $1,037.17 | ||||
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For example, if i=3.4567%, write your answer as 0.0346 D Question 10 A ten-year 8% bond with semiannual coupons is purc...
7. Problem 7: 1. A $1,000 par value ten-year 8% bond has semiannual coupons. The redemption...
7.
Problem 7: 1. A $1,000 par value ten-year 8% bond has semiannual coupons. The redemption value equals the par value. The bond is purchased at a premium to yield 6% convertible semiannually. What is the amount for amortization of the premium in the tenth coupon? 2. A ten-year 5% bond with semiannual coupons is purchased to yield 6% compounded semiannually. The par value and redemption value are both $1,000. What is the book value of the bond six years...
A $5,000 15% ten-year bond has semiannual coupons and is sold to yield 5.1% convertible semiannually. The discount on t...
A $5,000 15% ten-year bond has semiannual coupons and is sold to yield 5.1% convertible semiannually. The discount on the bond is $81.15 Find the redemption amount. (Round your answer to the nearest cent.)
A $5,000 15% ten-year bond has semiannual coupons and is sold to yield 5.1% convertible semiannually. The discount on the bond is $81.15 Find the redemption amount. (Round your answer to the nearest cent.)
A coupon bond with a par value of $1,000 and a 10-year maturity pays semiannual coupons...
A coupon bond with a par value of $1,000 and a 10-year maturity pays semiannual coupons of $21. (a) Suppose the yield for this bond is 4% per year compounded semiannually. What is the price of the bond? (b) Is the bond selling above or below par value? Why?
4.1.5 Don purchases a 1000 par value 10-year bond with 8% semiannual coupons for 900. He...
4.1.5 Don purchases a 1000 par value 10-year bond with 8% semiannual coupons for 900. He is able to reinvest his coupon payments at a nominal rate of 6% convertible semiannually. Calculate his nomi- nal annual yield rate convertible semiannually over the ten-year riod.
5. A 30-year 1000 par value bond with coupons at 9% payable semiannually and a redemption...
5. A 30-year 1000 par value bond with coupons at 9% payable semiannually and a redemption value of 1100 is purchased for a price that results in a yield of 12% compounded semiannually. Suppose that the bond is called (i.e. redeemed) prior to the actual maturity date and results in an actual nominal yield rate convertible semiannually of 14%. Note: Assume that the bond is called immediately after a coupon payment is made. Calculate the number of years the bond...
Eric purchases a $8,000 fifteen-year 7% bond with semiannual coupons and a redemption value of $9.000....
Eric purchases a $8,000 fifteen-year 7% bond with semiannual coupons and a redemption value of $9.000. After twenty-three months, he sells the bond to Pierre who holds the bond for seven years and then sells it to Irene for the same price at which he bought it. She holds the bond until maturity. The nominal yield rates convertible semiannually earned by Eric and Irene are 3.6% and 3.8% respectively. Find the price for the bond at issue and the price...
Eric purchases a $8,000 fifteen-year 7% bond with semiannual coupons and a redemption value of $9.000....
Eric purchases a $8,000 fifteen-year 7% bond with semiannual coupons and a redemption value of $9.000. After twenty-three months, he sells the bond to Pierre who holds the bond for seven years and then sells it to Irene for the same price at which he bought it. She holds the bond until maturity. The nominal yield rates convertible semiannually earned by Eric and Irene are 3.6% and 3.8% respectively. Find the price for the bond at issue and the price...
A $1,000 par value 8% bond with quarterly coupons is callable five years after issue. The...
A $1,000 par value 8% bond with quarterly coupons is callable five years after issue. The bond matures for 1000 at the end of ten years and is sold to yield a nominal rate of 6 percent compounded quarterly, calculated under the assumption that the bond will not be called, and is redeemed at maturity. Please determine the call premium at the end of five years, that would yield the purchaser the same nominal rate of 6% compounded quarterly if...
2. You own a $1,000 face value 10-year bond with semiannual coupons that will mature in...
2. You own a $1,000 face value 10-year bond with semiannual coupons that will mature in 6 years. Immediately after receiving the 8th coupon of $46, you sell the bond and purchase another newly issued $1,000 face value 10-year bond with semiannual coupons of $47.5 each. Given that the prevailing market interest rate is r(2) = 9% and the bond you originally owned is redeemable at 104% of the face value, find the redemption value of the new bond that...
Suppose a 10-year, $1,000 bond with a 8% coupon rate and semiannual coupons is trading for...
Suppose a 10-year, $1,000 bond with a 8% coupon rate and
semiannual coupons is trading for a price of $1,135.41.
a. What is the bond's yield to maturity (expressed as an APR
with semiannual compounding)?
b. If the bond's yield to maturity changes to 8% APR, what
will the bond's price be?
Suppose a 10-year, $1,000 bond with a 8% coupon rate and semiannual coupons is trading for a price of $1,135.41. a. What is the bond's yield to maturity...
7.
Problem 7: 1. A $1,000 par value ten-year 8% bond has semiannual coupons. The redemption value equals the par value. The bond is purchased at a premium to yield 6% convertible semiannually. What is the amount for amortization of the premium in the tenth coupon? 2. A ten-year 5% bond with semiannual coupons is purchased to yield 6% compounded semiannually. The par value and redemption value are both $1,000. What is the book value of the bond six years...
A $5,000 15% ten-year bond has semiannual coupons and is sold to yield 5.1% convertible semiannually. The discount on the bond is $81.15 Find the redemption amount. (Round your answer to the nearest cent.)
A $5,000 15% ten-year bond has semiannual coupons and is sold to yield 5.1% convertible semiannually. The discount on the bond is $81.15 Find the redemption amount. (Round your answer to the nearest cent.)
4.1.5 Don purchases a 1000 par value 10-year bond with 8% semiannual coupons for 900. He is able to reinvest his coupon payments at a nominal rate of 6% convertible semiannually. Calculate his nomi- nal annual yield rate convertible semiannually over the ten-year riod.
5. A 30-year 1000 par value bond with coupons at 9% payable semiannually and a redemption value of 1100 is purchased for a price that results in a yield of 12% compounded semiannually. Suppose that the bond is called (i.e. redeemed) prior to the actual maturity date and results in an actual nominal yield rate convertible semiannually of 14%. Note: Assume that the bond is called immediately after a coupon payment is made. Calculate the number of years the bond...
Eric purchases a $8,000 fifteen-year 7% bond with semiannual coupons and a redemption value of $9.000. After twenty-three months, he sells the bond to Pierre who holds the bond for seven years and then sells it to Irene for the same price at which he bought it. She holds the bond until maturity. The nominal yield rates convertible semiannually earned by Eric and Irene are 3.6% and 3.8% respectively. Find the price for the bond at issue and the price...
Eric purchases a $8,000 fifteen-year 7% bond with semiannual coupons and a redemption value of $9.000. After twenty-three months, he sells the bond to Pierre who holds the bond for seven years and then sells it to Irene for the same price at which he bought it. She holds the bond until maturity. The nominal yield rates convertible semiannually earned by Eric and Irene are 3.6% and 3.8% respectively. Find the price for the bond at issue and the price...
2. You own a $1,000 face value 10-year bond with semiannual coupons that will mature in 6 years. Immediately after receiving the 8th coupon of $46, you sell the bond and purchase another newly issued $1,000 face value 10-year bond with semiannual coupons of $47.5 each. Given that the prevailing market interest rate is r(2) = 9% and the bond you originally owned is redeemable at 104% of the face value, find the redemption value of the new bond that...
Suppose a 10-year, $1,000 bond with a 8% coupon rate and
semiannual coupons is trading for a price of $1,135.41.
a. What is the bond's yield to maturity (expressed as an APR
with semiannual compounding)?
b. If the bond's yield to maturity changes to 8% APR, what
will the bond's price be?
Suppose a 10-year, $1,000 bond with a 8% coupon rate and semiannual coupons is trading for a price of $1,135.41. a. What is the bond's yield to maturity...
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