60. Assume that you have just purchased a 2-year, $1,000 corporate bond that interest of $40.00 every six months and has an annual yield to maturity of 1 Given this information, determine the duration (on an annual basis) for this (Hint: remember to convert your duration from a 6-month basis to an annuall A. B. C. D. ABCD 1.9884 Years 1.9381 Years 1.8852 Years 1.7999 Years
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- On January 1, a company issued a 5-year $100,000 bond at 6%. Interest payments on the bond of $6,000 are to be made annually. If the company received proceeds of $112,300, how would the bonds issuance be quoted? A. 1.123 B. 112.30 C. 0.890 D. 89.05Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?59. Assume that you just bought a 5-year bond that pays interest annually of $80 each year and will mature for $1,000. Also assume that you have been given the 1-year, implied forward rates for each of the next 5 years that are listed below. Given this information, determine the yield-to-maturity for this bond. Year 1 2 3 4 5 ABCDE B. C. D. E. rf 6.00% 7.00% 8.00% 7.00% 6.00% 6.79% 7.01% 6.62% 7.20% 7.43%
- Give typing answer with explanation and conclusion 1- Imagine the bond above displayed the following details: $10,000 Matures: January 31, 2030; Interest of $200 payable June 30 and December 31 of each year. Can you calculate the annual effective interest rate for this bond? a)2% b)4% c)6% d)One cannot tell.a. On January 1, 20X1, your firm issues a $15,000, 4-year, 5% bond with interest payable annually for $13,056. At the time of the issuance, market rates are 9%. Journalize the issuance of the bond. DATE Debit Credit XIX b. Journalize the first annual interest payment on December 31, 20X1. DATE Debit Credit XIX c. Journalize the amortization of the premium/discount on December 31, 20X1. (If necessary, round to the nearest dollar.) DATE Debit Credit XIX d. On January 1, 20X2, the bonds are called at 99. Journalize this transaction. DATE Debit Credit XIX64. You intend to purchase a 10-year, $1,000 face value bond that paysinterest of $60 every 6 months. If your nominal annual required rate ofreturn is 10 percent with semiannual compounding, how much should you bewilling to pay for this bond?a. $ 826.31b. $1,086.15c. $ 957.50d. $1,431.49e. $1,124.62
- f. Now assume the date is October 25, 2019. Assume further that a 12%,10-year bond was issued on July 1, 2019, pays interest semiannually (onJanuary 1 and July 1), and sells for $1,100. Use your spreadsheet to findthe bond’s yield.Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 8 percent interest annually and have 15 years until maturity. You can purchase the bond for $1,075. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 6 percent? Question content area bottom Part 1 a. The yield to maturity on the Saleemi bonds is enter your response here%. (Round to two decimal places.) Part 2 b. You ▼ should should not purchase the bonds because your yield to maturity on the Saleemi bonds is ▼ greater less than the one on a comparable risk bond. (Select from the drop-down menus.)For the given corporate bond, whose annual simple interest rate is provided, find the semiannual simple interest payment and the total interest earned over the life of the bond. Assume 365 days in a year. $11,200 Company A, 10-year bond, 4.542% The semiannual interest on the corporate bond is $. (Round to the nearest cent as needed.) *** Clear all Check answer
- a. on january 1, 20x1, your firm issues a $10,000, 5-year, 10% bond with interest payable annually for $10,389. at the time of the issuance, market rates are 9%. journalize the issuance of the bond. debit credit date xix b. journalize the first annual interest payment on december 31, 20x1. debit credit date xix c. journalize the amortization of the premium/discount on december 31, 20x1. (if necessary, round to the nearest dollar.) date debit credit xix d. on january 1, 20x2, the bonds are called at 99. journalize this transaction. debit credit date xix9. Sean Corp. issued a $40,000, 10-year bond, with a stated rate of 8%, paid semiannually. How much cash will the bond investors receive at the end of the first interest period? a.$1,600 b.$4,000 c.$3,200 d.$800Bond Issuance. Sander Corporation issues a P300,000, 16 percent, 10-year bond at 108. REQUIREMENTS: (a) What is the maturity value? (b) What is the annual cash interest payment? (c) What are the proceeds the company receives upon issuance of the bond? (d) What is the amount of the premium? (e) What is the annual premium amortization?