A $10000 15-year bond is priced to yield at 12% compounded quarterly. It has quarterly coupons of $200 each the 1st year, $215 each the 2nd year, $230 each the 3rd year,.., $410 each the 15th year. (a) Show that the price is $9267.05. (b) Determine the book value after 14 years. (c) Draw up a partial bond schedule showing the first and last year's entries only.
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- A 17-year bond pays interest of $45 every six months and will mature for $1,000. Also assume that the yield to maturity on this bond is currently 7.82 percent. Given this information, determine the current price of this bond. $1,103.15 O $1,095.23 $1.080.83 O $1,109.94 O $1,087.79Assume that a 5-year bond pays interest of $110 once a year (1 payment / year) and will mature for $1,000. Also assume that the yield to maturity on this bond is currently 12 percent. Given this information, determine the duration of this bond. Answer truncated to 2 decimal places. For example, if your answer is 3.267, enter "3.26".Assume that a 5-year bond pays interest of $110 once a year (1 payment/year) and will mature for $1,000. Also assume that the yield to maturity on this bond is currently 12 percent. Given this information, determine the duration of this bond. Enter your answer in decimal format, truncated to 2 decimal places. For example, if your answer is 7.1186 years, enter "7.11".
- 2. A 20-year, 10% quarterly-pay bond has a par value of $1,000. What would this bond be? trading for if it were being priced to yield 15% as an annual rate? A. $665.14. B. $684.20 C. $694.39.2. A 10-year, P20,000 bond was issued at a nominal interest rate of 8% with semiannual compounding. Just after the fourth interest payment, the bond will be sold. Assume that an effective interest rate of 10 % % will apply, and calculate the price of the bond.Assume that a 5-year bond pays interest of $90 once a year (1 payment / year) and will mature for $1,000. Also assume that the yield to maturity on this bond is currently 10 percent. Given this information, determine the duration of this bond. Enter your answer in decimal format, truncated to 2 decimal places. For example, if your answer is 7.1186 years, enter "7.11".
- Need Solutions ASAP... A 10-year, $20,000 bond was issued at a nominal interest rate of 8% with semiannual compounding. Just after the fourth interest payment, the bond will be sold. Assume that an effective interest rate of 10 (1/4)% will apply, and calculate the price of the bond. (Answer: $17,832)42. A bond pays 9% yearly interest in semi-annual payments for 6years. The current yield on similar bonds is 12%. To determinethe market value of this bond, you musta. find the interest factors (IFs) for 12 periods at 12%.b. find the interest factors (IFs) for 6 periods at 9%.c. find the interest factors (IFs) for 6 periods at 6%.d. find the interest factors (IFs) for 12 periods at 6%.43. What is the approximate yield to maturity for a seven-year bondthat pays 11% interest on a $1000 face value annually if thebond sells for $952a. 10.5%b. 10.6%c. 11.5%d. 12.1%44. A ten-year bond pays 11% interest on a $1000 face valueannually. If it currently sells for $1,195, what is itsapproximate yield to maturity?a. 9.33%b. 7.94%c. 12.66%d. 8.10%2. DEF Company will issue $8,000,000 in 10%, 10-year bonds when the market rate of interest is 7%. Interest is paid semiannually. Required: a. Will this interest structure result in a Premium for DEF company or a Discount? b. How much cash will be received from the issuance of the bond? c. How much will the semi-annual interest payment be on the bond?
- A $1,000, 5%, 20-year annual-pay bond has a yield-to-maturity (YTM) of 6.5%. if the YTM remains unchanged, how much will the bond value increase over the next three years? A. $13.44 B. $13.62 C. $13.78 D. $13.96Use the following tables to calculate the present value of a $672,000, 6%, 6-year bond that pays $40,320 ($672,000 x 6%) interest annually, if the market rate of interest is 7%. Present Value of $1 at Compound Interest Periods 6% 7% 1 0.94340 0.93458 0.90909 2 0.89000 0.87344 0.82645 3 0.83962 0.81630 0.75131 4 0.79209 0.76290 0.68301 5 0.74726 0.71299 0.62092 6 0.70496 0.66634 0.56447 7 0.66506 0.62275 0.51316 8 0.62741 0.58201 0.46651 9 0.59190 0.54393 0.42410 0.55839 0.50835 0.38554 10 Present Value of Annuity of $1 at Compound Interest Periods 1 2 3 4 5 6 7 8 9 5% 10 0.95238 0.90703 0.86384 0.82270 0.78353 0.74622 0.71068 0.67684 0.64461 0.61391 5% 0.95238 1.85941 2.72325 3.54595 4.32948 5.07569 5.78637 6.46321 7.10782 7.72173 6% 0.94340 1.83339 2.67301 3.46511 4.21236 4.91732 5.58238 6.20979 6.80169 7.36009 7% 0.93458 1.80802 2.62432 10% 10% 3.38721 4.10020 4.76654 5.38929 5.97130 6.51523 5.75902 7.02358 6.14457 Round your intermediate calculations and final answer to the nearest…a. An 8 ½%, 25-year, $1,000 bond is presently selling at a yield-to-maturity (YTM) of 9 4%. Assuming annual interest payments, what should you pay for the bond? b. What should you pay if interest is paid semiannually? c. Instead of a 25-year bond, they decide to issue 15-year bonds with annual payments. What should you pay for this bond if the YTM is 9 4%? Explain the differences in prices changes for (3a) and (3c) in terms of maturity. d. You buy an 8%, 15-year, $1,000 bond that pays interest annually when it is selling with a YTM of 7%. Immediately after you buy the bond, the YTM increases to 9%. What was the percentage change in the price of the bond? A bond has a market price that exceeds its face value. What type of bond is this? Describe the relationship between the coupon rate and the YTM. е.