What is the price of the following bond? face value/redemption price: maturity: coupon rate: discount rate: *coupon rate (regular payment) P1,015 9 years 10% 7%
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- A company has issued a 20 year bonds, with a face value of $50,000. Interest at 8% is paid quarterly. If an investor desires to earn 12%, compounded quarterly, what would be the purchase price of the bond?A $1000 face-value coupon bond has a current yield of 5.75% and a market price of $1060. What is the bond’s coupon rate?What should be the price of a 8year zero-coupon bond with a face value of $1000 where zero-coupond bonds yield 6% interest?
- Suppose you purchased a corporate bond with a 10-year maturity. a $1,000par value, a 10% coupon rate, and semiannual interest payments. What all this means that you receive $50 interest payment at the end of each six-month period for 10 years (20 times). Then, when the bond matures, you will receive the principal amount (the face value) in a lump sum. Three years after the bonds were purchased, the going rate of interest (coupon rate) on new bonds fell to 6% (or 6% compounded semiannually). What is the current market value (P) of the bond (3 years after the purchase)?Suppose a certain manufacturer deposits $3, 000 at the beginning of each 3 month period for 8 years in an account paying 8% interest compounded quarterly. (Round your answers to the nearest cent.) (a) How much (in $) will be in the account at the end of the 8 year period? $ Incorrect: Your answer is incorrect. (b) What is the total amount (in $) of interest earned in this account? $ Incorrect: Your answer is incorrectThe force of interest at time is 0.05t. 3 payments equal to 1 are made at the end of years 1, 2, and 3. Find the future value at the end of year 4. a) 3.4 b) 3.6 c)3.8 d) 4.0 e) 4.2
- In an ordinary annuity (uniform series of payments) if the nominal rate of interest is 8% compounded quarterly for 6 years. 1. Compute the value of the capital recovery factor. 2. Compute the value of the sinking fund factor. 3. Compute the value of the present worth factor.You wish to purchase some 25-year-maturity strip bonds with the $11,874 in cash you now have. If these strip bonds are currently priced to yield 2.125% compounded semiannually, how many $1000 denomination bonds can you purchase? a14 bonds b5 bonds c6 bonds d7 bonds e8 bondsIf you borrow $4,000, what single payment must you make after 5 years to repay the principal and interest at 10%? Alternatively, what uniform annual payment would be required? 2. The interest rate charged on a small loan is 1.5% per month. What are the corresponding 'nominal' and 'effective' rates per annum? 3. Using the interest rate of 3% compounded annually, what is the amount that will be accumulated in a sinking fund at the end of 15 years if $200 is deposited in the fund at the beginning of each of the 15 years if $200 is deposited in the fund at the beginning of each of the 15 years?
- Asap The coupon bond pays a coupon of 5% per year, paid semi-annually. It has 3 years to maturity. If the current Yield-to-Maturity is 2.5% semi-annually, what is the price of the bond? Assume Face value of BOND = 100You have a student loan with a 10% APR, compounded monthly, and a $27,000 balance. You plan to pay off the entire balance by making semi-annual payments for 19 years. a. What is the effective semi-annual interest rate? b. How much is each payment? a. What is the effective semi-annual interest rate? 5.11 % (Round to 2 decimal places) b. How much is each payment? $ 1623 (Round to the nearest dollar - no decimal places)A debt of $40,000 whose interest rate is 15% compounded semiannually, is to be discharged by a series of 10 semiannual payments, the first payment is to be made 6 months after consummation of the loan. The first 6 payments will be $6,000 each, while the remaining 4 payments will be equal and of such amount that the final payment will liquidate the debt, what is the amount of the last 4 payments?