Question

A 10% bond with semi-annual coupons and with face value N$100,000 and redemption amount N$ 98,760 is issued with the condition that the redemption can take place 15 days after the 20th coupon date. Find the price paid by an investor wishing a minimum yield rate of 12%

Answer #1

We'll use MS Excel's 'Price' function as shown below in the snippet (assuming settlement date to be today, and maturity after 15 days post 20 coupon payments i.e. 15 days post10 years)

The formula returns the bond price for $100 of face value of bond, which in this case is 88.10892

Since face value here is $100000, so the investor would pay N$88,108.92

An n-year bond has face and redemption amount of $100. The bond
has level semiannual coupons and the yield rate is a nominal annual
rate of 6% compounded semiannually. The bond’s book value just
after the 8th coupon is $121.30 and just after the 10th coupon, the
book value is $120.39. Find the original purchase price of the
bond.

A 8-year bond with a face value of $1000 pays semi-annual
coupons at j2= 10.2%. If the bond sells for $1272.59 to
yield an investor j2= 7.1%, what is the redemption
value?

a 10-year bond, $1,000 face value bond with a 8% coupon rate and
semi-annual coupons has a yield to maturity of 12%. the bond should
be trading at the price of? round to nearest cent

16. A 10-year bond, $100 face value bond with a 8% coupon rate
and semi-annual coupons has a yield maturity of 5%. The bond should
be trading at a price of $.___ Round to the nearest cent.
17. XYZ company has just issued a 30-year bond with a coupon
rate of %7.5 (annual coupon payments) and a face value of $1,00. If
the yield to maturity is 11%, what is the price of the bond. Round
to the nearest cent....

A bond has a face value and redemption value of $140. It pays
coupons annuallt at an effective annual rate that is the double of
th effetive annual yield. The present value of the remdeption
amount is 3 times the present value of the coupon stream. What is
the price of the bond?
Answer: $160.... Please show working out

A bond has a face amount of 1,000 and a term of n years. It is
bought to yield a nominal rate of 7% convertible semi-annually. The
bond will be redeemed for 1,100 at maturity. It pays semi-annual
coupons at 6% annual coupon rate. The present value of the coupon
is 426.50. What is the price of the bond?

An investor bought a 15−year bond with par value of 100,000 and
8% semiannual coupons. The bond is callable at par on any coupon
date beginning with the 24th coupon. Find the highest price paid
that will yield the rate of no less that
i(2) = 10%.
NO EXCEL PLEASE

A bond with 100 redemption value, semiannual coupons of 100r,
a term of 10 years and a yield rate of 10% convertible
semi-annually has a book value of 105.84 immediately after the
second coupon payment.
Find the book value immediately after the tenth coupon
payment.
A. 104.84
B. 103.84
C. 104.38
D. 0

Suppose that there are 4 semi-annual coupons remaining for a 7%
coupon bond. There are 104 days until the next coupon payment date
and there are 182 days in a coupon period. Assuming that the
annualized discount rate on a bond-equivalent yield basis is 10%,
what is the clean price of this bond? Par value is $100.

Suppose that there are 4 semi-annual coupons remaining for a 7%
coupon bond. There
are 104 days until the next coupon payment date and there are 182
days in a coupon period. Assuming
that the annualized discount rate on a bond-equivalent yield basis
is 10%, what is the clean price of this
bond? Par value is $100.

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