A bondholder that owns a $4,500, 6%, 6-year bond has O The right to receive $27.000 at maturity. O The right to receive dividends of $4,500 per year. O The right to receive $4,500 at maturity O Ownership rights O The right to receive $6 per year until maturity.
1. (12 points) A bondholder owns one corporate bond that pays semi-annual coupons, has 6 percent coupon rate, and a face value of $1000. The bond has 5 years to maturity, and it currently traded at par. (1) Based on the information that the bond is traded at par, what is the YTM of the bond currently? (2) If the YTM of the bond rises to 7 percent one year later, what is the new price of the bond? (3)...
Question: A bondholder that csrries a $51,000, 6%, 15 year term bond has A) The right to recieve $1,000 at maturity B) Ownership rights on the bond-issuing entity. C) The right to recieve $60 per month until maturity D) The right to recieve $1,900 at maturity E) The right to recieve $600 per year until maturity
A bondholder owns 10-year government bonds with a $1 million face value and a 4 percent coupon that is paid annually. The bonds are currently priced at $1,269,181 with a yield of 1.137 percent. The bonds have a duration of 8.59 years If interest rates are projected to increase by 50 basis points, how much will the bondholder gain or lose? Select one: O a. gain $4,129 b. gain $53,898 c. lose $53,898 O d. none of the options e....
A bondholder owns 10-year government bonds with a $1 million face value and a 4 percent coupon that is paid annually. The bonds are currently priced at $1,269,181 with a yield of 1.137 percent. The bonds have a duration of 8.59 years. If interest rates are projected to increase by 50 basis points, how much will the bondholder gain or lose? Select one: O a. gain $4,129 O b. gain $53,898 c. lose $53,898 O d. none of the options...
2) A person paid $1,040 for a five year, $1,000, 8% bond. Required: a) Determine how much cash the bondholder will receive each year as interest. b) Determine the amount of cash the bondholder will receive for his return on investment and the return of his investment for the $1,000 bond. Be sure to show your work. c) Determine if the effective (market) interest rate is less than, equal to, or greater than 12%.
1) A person paid $950 for a five year, $1,000, 9% bond. Required: a) Determine how much cash the bondholder will receive each year as interest. b) Determine the amount of cash the bondholder will receive for his return on investment (950 paid) and the return of his investment for the $1,000 bond. Be sure to show your work. c) Determine if the effective (market) interest rate is less than, equal to, or greater than 12%.
Elif owns a bond that will pay her $75 each year in interest plus a $1,000 principal payment at maturity. What is the $75 called? What is the $1,00 called? What other information would Elif need to calculate the value of this bond? (Please Show Work, Thank You So Much in Advance!)
A $1,000 bond has a coupon rate of 9% that is paid semi-annually, and has 5 years until it matures. The current yield to maturity is 7% a. What is the price of the bond? ___________ b. What is the amount of the annual interest paid to the bondholder? ___________ c. Is this a discount bond or a premium bond? ______________________
if bondholder holds one premium and one discount bond , should the bondholder exercise the conversion for either of the bonds?