Annual coupon = 0.14 * 15,000 = 2,100
Present value = Annuity * [1 - 1 / (1+r)n] / r + Fv / (1 + r)n
Present value = 2100 * [1 - 1 / (1 + 0.12)16] / 0.12 + 15000 / (1 + 0.12)16
Present value = 2100 * [1 - 0.163122] / 0.12 + 2,446.824928
Present value = 2100 * 6.973983 + 2,446.824928
Present value = $17,092
Find the present value of a bond with a maturity date 16 years from now, 14% yearly coupons, and a face value of $15,00...
Find the present value of a bond with a maturity date 16 years from now, 14% yearly coupons, and a face value of $15,000, given an effective annual discount rate of 12%. Select one: 0 a. $17,970 b. $17,324 c. $18,320 d. $17,092 e. $16,500 O o
If a bond with a face value of $1,000, 8 years to maturity, semiannual coupons, and the yield to maturity of 4% sells for $1,067.89, what is its annual coupon rate? A. 4% B. 5% C. 2% D. 3% E. 2.5%
QUESTION 8 (16 marks) (a) [5 marks] John purchases a $1000 face value 10-year bond with coupons of 8% per annum paid half-yearly. The bond will be redeemed at C. The purchase price is $800 and the exact present value of the redemption amount C is $301.5116. Calculate the redemption amount C, and state if the bond is redeemed at par, discount or premium. (Hint: a at 3% is 14.87747 ag at 4% is 13.59033, a at 5 % is...
A $1,000 United States Treasury bond with a maturity date 20 years from now and a coupon rate of 5 percent has a required rate of return of 5 percent. Calculate the value of the bond if annual interest rate payment are in force. Show your data inputs. Strip the bond into an interest only bond and a face value only bond. That is, create a bond that has only the present value of the interest payments and one that...
A bond has eight years to maturity, a $2,000 face value, and a 6.3% coupon rate with annual coupons. What is its yield to maturity if it is currently trading at $1,639? O A. 7.71% OB. 13.5% O C. 11.57% OD. 9.64%
Calculate the bond price for maturity 4 years with face (nominal) value 100, annual coupons 5, and continous compounding with interest a) 8% and b) 5%. What do you notice?
What is the price of a bond with the following features? 8 years to maturity, face value of $1000, coupon rate of 3% (annual coupons) and yield to maturity (discount rate) of 9.6%.
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Consider an annual coupon bond with a face value of $100, 12 years to maturity, and a price of $93. The coupon rate on the bond is 9%. If you can reinvest coupons at a rate of 4% per annum, then how much money do you have if you hold the bond to maturity? The total proceeds from holding the bond to maturity are $ nothing. (Round to the nearest cent.)
12) A bond has five years to maturity, a $2000 face value, and a 5.8% coupon rate with annual coupons. What is its yield to maturity if it is currently trading at $1681.60? A) 8.00% B) 10.00% C) 12.00% D) 14.00%