Question

In: Finance

If you own a 10000 bond with a coupon rate of 10%, how much cash flow...

If you own a 10000 bond with a coupon rate of 10%, how much cash flow will you receive on the maturity date?

500

10500

1000

9900

11000

Solutions

Expert Solution

The cash flow is computed as follows:

= Par value x coupon rate + Par value

= 10000 x 10% + 10000

= 1000 + 10,000

= 11000

jeff jeffy answered 3 years ago
Next > < Previous

Related Solutions

You own a 10-year bond paying an annual coupon rate of 5%. The yield to maturity...
You own a 10-year bond paying an annual coupon rate of 5%. The yield to maturity on the bond is 7%. The face value, as usual, is $1000. What is the value of the bond today?
1. How much would the price of a 10 year semi-annual 13% coupon rate bond be,...
1. How much would the price of a 10 year semi-annual 13% coupon rate bond be, if the market interest rate is 18%? How much would it be if the interest rate drops to 10%? At which interest rate level this bond will be sold for its par value?
A 10-year corporate bond has a coupon rate of 6% with semi-annual payments. How much is...
A 10-year corporate bond has a coupon rate of 6% with semi-annual payments. How much is the par value of this bond? A 10-year corporate bond has a coupon rate of 6% with annual payments. How much in interest does the bondholder receive per year? A 10-year corporate bond has a coupon rate of 6% with semi-annual payments. How much in interest does the bondholder receive per year and per interest payment?
You own a bond with a coupon rate of 6.6 percent and a yield to call...
You own a bond with a coupon rate of 6.6 percent and a yield to call of 7.5 percent. The bond currently sells for $1,092. If the bond is callable in five years, what is the call premium of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
A 13-year coupon bond pays a 12.7% coupon. The market discount rate is 10.5%. How much...
A 13-year coupon bond pays a 12.7% coupon. The market discount rate is 10.5%. How much should the bond sell for as it price. Is this a discount or premium bond? b) Assume now that the bond in (a) is a semi-annual coupon bond. Using all other information in (a), compute its price. c) The ordinary shares of Afram Plains Limited just paid a dividend of GH¢ 1.25. It is expected that dividends and income will grow at the same...
You own a bond with the following features:               Face value of $1000,               Coupon rate...
You own a bond with the following features:               Face value of $1000,               Coupon rate of 5% (annual)               13 years to maturity. The bond is callable after 7 years with the call price of $1,071. If the market interest rate is 3.51% in 7 years when the bond can be called, if the firm calls the bond, how much will it save or lose by calling the bond? State your answer to the nearest penny (e.g., 84.25) If...
You own a bond with the following features:               Face value of $1000,               Coupon rate...
You own a bond with the following features:               Face value of $1000,               Coupon rate of 4% (annual)               11 years to maturity. The bond is callable after 7 years with the call price of $1,069. If the market interest rate is 4.23% in 7 years when the bond can be called, if the firm calls the bond, how much will it save or lose by calling the bond? State your answer to the nearest penny (e.g., 84.25) If...
Suppose that you buy a semi-annual coupon bond with coupon rate of 10%; the market price...
Suppose that you buy a semi-annual coupon bond with coupon rate of 10%; the market price of $1,120, and the time to maturity of 17 years. Seven years from now, the YTM on your bond is expected to decline by 2%, and you plan to sell. What is the holding period yield (HPY) on your investment? Please give the explanation or formula! Thanks!
14. Suppose that you buy a semi-annual coupon bond with coupon rate of 10%; the market...
14. Suppose that you buy a semi-annual coupon bond with coupon rate of 10%; the market price of $1,120, and the time to maturity of 17 years. Seven years from now, the YTM on your bond is expected to decline by 2%, and you plan to sell. What is the holding period yield (HPY) on your investment? Could you explain the question in detail with formula plz! I don't understand others poster answers.
Suppose that you buy a semi-annual coupon bond with coupon rate of 10%; the market price...
Suppose that you buy a semi-annual coupon bond with coupon rate of 10%; the market price of $1,120, and the time to maturity of 17 years. Seven years from now, the YTM on your bond is expected to decline by 2%, and you plan to sell. What is the holding period yield (HPY) on your investment ABC Corp. just issued some new preferred stock. The issue will pay a $3 quarterly dividend in perpetuity, beginning 12 years from now. If...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT