5. A U.S. Government bond was quoted at 98:01 "bid" and 98:10 "asked". How much would you have to pay for one of these $1,000.00 face value bonds?(Points : 3.71)…
(TCO B) Suppose a state of Delaware bond will pay $1,000 10 years from now. If the going interest rate on these 10-year bonds is 5.5%, how much is the bond worth today?…
4. A $1,000 face value bond currently has a yield to maturity of 8.89 percent. The bond matures in 7 years and pays interest annually. The coupon rate is 9 percent. What is the current price of this bond?…
4. Bonds with a face value of $300,000 and a quoted price of 97¼ have a selling price of…
3. Assume that 11% is the market rate of interest in on January 1, 1975. Compute the present value at January 1, 1975 of all payments that will be made on the 5% bonds if they are not retired.…
Bonds-1. Interest on a certain issue of bonds is paid annually with a coupon rate of 8%. The bonds have a par value of $1,000. The yield to maturity is 9%. What is the current market piece of these bonds? The bonds will mature in 5 years.…
d) Assuming interest rates remain unchanged (after the initial 2% increase took place), what is the price of Bond B after 5 years (7 pts)?…
c. If your required return is 9% APR, would you buy this bond today? Show work to…
A series EE bond that will have a maturity value of $13,070 (a 5.5% before-tax rate of return.) 10000*5.5%^5 = 13,070…
9) A discount bond selling for $15,000 with a face value of $20,000 in one year has a yield to…
a. What would Mrs. Beach have to deposit if she were to use high quality corporate bonds an earned an average rate of return of 7%.…
You can use the financial calculator in order to calculate the value of each bond. The value of each bond is equal to the present value (PV). So the first step is to assign the other values into the calculator. Since all the bonds are annual, (N) will be the number of years. The (I/Y) will equal to the YTM. The (PMT) will equal to the face value times the coupon rate. The (FV) will equal to the face value. After finding all the values, simply use the (CPT) (PV) to find the value of each bond.…
-Lower cost than bond: 'the principal repayments on the bond mean an additional $6.25 million cash outlay every year and it is over 9% of the bond issue.'…
Davy Crockett, Inc. has an 8 percent coupon bond that matures in 8 years. The bond pays interest semiannually. What is the market price of the $1,000 face value bond if the yield to maturity is 10%?…
1. You have a cash obligation of $132,240 to be made at the end of year 5. Show how you can use coupon bonds with a coupon rate of 8%, a face value of $1,000, a maturity date at the end of year 6, and a yield to maturity of 8% to ensure that you can meet your cash obligation at the end of year 5. Suppose that you purchase the bonds at the beginning of year 1 and that the market interest rate changes only once right after you have purchased the bonds. There are three possible interest rates, 7.9%, 8%, and 8.1%, each of which occurs with probability 1/3.…