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%
- John 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%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 S
- 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 $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? $0.00A $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. Gregory purchased this bond when there were 9 years left to maturity and when the market interest rate was 6.00% compounded semi-annually. He held the bond for 4 years, then sold it when the market interest rate was 5.50% compounded semi-annually. a. Calculate the purchase price of the bond. b. Calculate the amount that Gregory received when he sold the bond