Betty bought a 9% four-year bond with a par value of $100. The bond pays the coupon payments semi-annual. The current discount rate is 10%. Please calculate the PV (present value) of the 1st coupon. A) $3.89 B $4.29 C) $4.50 $3.70
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- Sally purchased a 5.73 percent coupon bond with a clean price of $1,031.83. What is the invoice price of the bond if there is four months to the next semiannual coupon date? A $1,012.73 B $1,022.28 C$1,041.38 D) $1,050.93 (E $1,089.13An investor just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 5 percent with interest being paid semiannually. If the investor expects to earn an 8 percent rate of return on this bond, how much should she pay for it? A. $950.75 OB.$1,003.42 OC. $875.38 OD. $1,122.87 E.$796.15Logan purchased a $1,000 par value bond. The amount of each annual interest payment is $82.50. If Logan paid a premium of $100.31 for the bond, what is the current yield? Group of answer choices 8.25% 10.03% 9.17% 7.50%
- Logan bought a bond that matures in 10 years and pays 6% interest. The bond had a face value of $10 000. He received 10 annual payments of $1358.68. This bond was . a. mortgage bond b. zero-coupon bond c. Eurobond d. an amortising bondLast year, Kevin Thomas purchased a $1000 Campbell Manufacturing corporate bond with an annual interest rate of 7.25%. The bond's current market price is $770. Calculate the following. If necessary, round all answers to two decimal places. If necessary, refer to the list of financial formulas. 1. Annual interest: 2. Current yield: $0 0% X SJohn bought a 10-year bond for $925. The bond pays a coupon of 5 percent per year and payments are made semiannually. What is the Effective Annual Yield (EAY) on this bond? 10.67% 9.66% O 6.10% 6.30% 3.10%
- The Saleemi Corporation's $1,000 bonds pay 6 percent interest annually and have 11 years until maturity. You can purchase the bond for $1,155. 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 3 percent?on Assume that you purchase a 30-year stripped bond with a $100,000 face value. The current bond price is $9,937.73 and the yield is 8%. Calculate the interest revenue during the first year of holding the bond. Calculate amounts to nearest dollar, no $. Answer:Kimberly purchased a $6,500 bond that was paying a 6.75% compounded semi- annually coupon rate and had 3 more years to maturity. The yield rate at the time of purchase was 5.75% compounded semi-annually. a. How much did Kimberly pay for the bond? Round to the nearest cent b. What was the amount of premium or discount on the bond?
- A $2,000 bond had a coupon rate of 4.20% with interest paid semi-annually, Evan purchased this bond when there were 7 years left to maturity and when the market interest rate was 7.20 % compounded semi-annually. She held the bond for 2 years, then sold it when the market interest rate was 3.20% compounded semi-annually. a. Calculate the purchase price of the bond. $1,656.92 O $1,218.97 O$455.60 Question 3 of 4 $1,674.57 b. Calculate Evan's selling price. SUBMIT ASSIGNMENTA $8,500 bond had a coupon rate of 5.75% with interest paid semi-annually. Christopher purchased this bond when there were 8 years left to maturity and when the market interest rate was 6.00% compounded semi-annually. She held the bond for 3 years, then sold it when the market interest rate was 5.50 % compounded semi- annually. a. What was the purchase price of the bond? -$8,365.25 X Round to the nearest cent. b. What was the selling price of the bond? $0.00You are interested in purchasing two bonds. Bond A: 15-year $1,000,000 bond, redeemable at 102.5, and paying semi-annual coupons at i (2) = 4%. It is bought to yield i (2) = 5%. Bond B: 15-year, $1,000,000 bond, redeemable at 102.5 and paying semi-annual coupons at i (2) = 6.5%, bought to yield i (2) = 5%. Set up a bond amortization/accumulation schedule for each bond. Graph the values in the book value column for each bond (on the same graph). Please use the excel and show the formula. Thank you so much.