Use simple interest to calculate the cash price of the following bond: 5,000 USD, 8% bond with semi-annual coupons payable April 1 and October 1. The bond is purchased on August 25 at 104.75 (%).
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- Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?You purchase 30 bonds with a coupon rate of 5.875% and a current market price of 89. The commission charge is $15.00 per bond. The date of the transaction is September 1, and the bond pays interest on January 1 and July 1. What is your total purchase price? a.) $27,200.00 b.) $27,443.75 c.) $27,800.00 d.) $27,791.60You purchase 30 bonds with a coupon rate of 5.250% and a current market price of 92.4. The commission charge is $10.00 per bond. The date of the transaction is October 1, and the bond pays interest on January 1 and July 1. What is your total purchase price?
- A four-year discount bond has a face value of $1,000 and a price of $925. What is the yield to maturity on the bond?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?Determine the coupon rate on a $50,000 bond with an annual coupon payment of $2,800.
- Calculate the bond issue price for the issue of a $252,000, 8%, 3-year bond. The market rate is 9%.Calculate the selling price of the following 5-year bond issue: e. # bonds Bond rate of interest Interest payable Market rate of interest Bond maturity (face) value 600 5.8% semi-annually 6.0% $1,000Calculate the cash price of the following bond, sold on September 21: par = $1,000; coupon rate = 6 percent, paid on January 1 and July 1; quoted price = $945. (Round answer to 2 decimal places, e.g. 1564.25.) $ Cash price
- Suppose you purchase a $1,000 TIPS on January 1, 2021. The bond carries a fixed coupon of 3 percent. Over the first two years, semiannual inflation is 4 percent, 1 percent, 1 percent, and 3 percent, respectively. For each six-month period, calculate the accrued principal and coupon payment.A bond is sold at a face value of $200 with an annual yield of 3%. How much will the bondholder have received in payment from the bond issuer after the bond has reached its maturity date of one year? $200 $406 $6 $206Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): The timeline starts at Period 0 and ends at Period 20. The timeline shows a cash flow of $ 20.72 each from Period 1 to Period 19. In Period 20, the cash flow is $ 20.72 plus $ 1,000. Period0121920 Cash Flows$20.72$20.72$20.72$20.72+$1,000 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value?