Fun-well Limited issued a semi-annual bond with a par value of $ 36,000, coupon rate of...

Fun-well Limited issued a semi-annual bond with a par value of $ 36,000, coupon rate of 8% p.a. and a maturity period of 15 years.

Required:

Create a model showing the interest and principal repayment separately, and calculate the value of the bond when the required rate of return is 10% if:

Interest is paid annually.
Interest is paid semi-annually.
What would be the value of the bond when the required rate of return is 12%, interest paid semi-annually and with a maturity of 8 years?

Expert Solution

jeff jeffy answered 2 years ago

A bond with a par value of $1,000 has a 6% coupon rate with semi-annual coupon...

A bond with a par value of $1,000 has a 6% coupon rate with semi-annual coupon payments made on July 1 and January 1. If the bond changes hands on November 1, which of the following is true with respect to accrued interest? The buyer will pay the seller $20 of accrued interest The seller will pay the buyer $20 of accrued interest The buyer will pay the seller $10 of accrued interest The seller will pay the buyer $10...

Ezekiel Limited issued a bond with a par value of $ 20,000, coupon rate of 8%...

Ezekiel Limited issued a bond with a par value of $ 20,000, coupon rate of 8% p.a. and a maturity period of 12 years. Create a model showing the interest and principal repayment separately and calculate the value of the bond when the required rate of return is 10% if: Interest is paid annually. Interest is paid semi-annually. What would be the value of the bond when the required rate of return is 7.5% payable semi-annually and with a...

21. If a 3-year, semi-annual bond ($1,000 par value) has an annual coupon rate of 8...

21. If a 3-year, semi-annual bond ($1,000 par value) has an annual coupon rate of 8 percent, and an annual yield to maturity of 6 percent, then calculate Macaulay's duration of the bond using the table format demonstrated in the video (not the equation)

Consider the following bond issued by Halliburton: coupon rate: 2.067%, with semi-annual coupon payments Face value:...

Consider the following bond issued by Halliburton: coupon rate: 2.067%, with semi-annual coupon payments Face value: $1,000 Maturity date: August 1, 2023 Assume that today is August 2, 2016. Suppose, for the sake of argument, that the annual discount rate is 7.636%, with semi-annual compounding. What is the value of the bond? Do not round at intermediate steps in your calculation. Round your answer to the nearest penny. Do NOT include a minus sign! Do not type the $ symbol.

Consider the following bond issued by Halliburton: -coupon rate: 3.618%, with semi-annual coupon payments -Face value:...

Consider the following bond issued by Halliburton: -coupon rate: 3.618%, with semi-annual coupon payments -Face value: $1,000 -Maturity date: August 1, 2023 Assume that today is August 2, 2016. Suppose, for the sake of argument, that the annual discount rate is 7.899%, with semi-annual compounding. What is the value of the bond? Do not round at intermediate steps in your calculation. Round your answer to the nearest penny. Do NOT include a minus sign! Do not type the $ symbol.

Consider the following bond issued by Halliburton: coupon rate: 8.294%, with semi-annual coupon payments Face value:...

Consider the following bond issued by Halliburton: coupon rate: 8.294%, with semi-annual coupon payments Face value: $1,000 Maturity date: August 1, 2023 Assume that today is August 2, 2016. Suppose, for the sake of argument, that the annual discount rate is 2.01%, with semi-annual compounding. What is the value of the bond? Do not round at intermediate steps in your calculation. Round your answer to the nearest penny. Do NOT include a minus sign! Do not type the $ symbol.

General Motors issued a semi-annual coupon bond with a coupon rate of 14% and the yield...

General Motors issued a semi-annual coupon bond with a coupon rate of 14% and the yield to maturity of 16%. The bond has a Face Value of $1,000 and matures in 7 years. What will this bond sell for? (Calculate the price of this bond) $ 577.10 $ 1000 $ 1,108 $ 917.56

What is the Coupon Rate of a bond that makes semi-annual couponpayments, has a par...

What is the Coupon Rate of a bond that makes semi-annual coupon payments, has a par value of $1000, sells on the market for $1031.40, has a yield-to-maturity of 6%, and has 8 years remaining until maturity?

Last year company X issued a 10-year, 12% semi-annual coupon bond at its par value of...

Last year company X issued a 10-year, 12% semi-annual coupon bond at its par value of $1000. Currently, the bond can be called in 4 years at a price of $ 1,060 and it sells for $ 1,100. What are the bond’s nominal YTM and nominal YTC ? Would the investor more likely be earning YTM or YTC ? (b) Three bonds were issues at par value of $1000 and YTM of 8 %. Evaluate the price of below: •...

What is the YTM of a four-year semi-annual coupon bond with a par value of $1,000...

What is the YTM of a four-year semi-annual coupon bond with a par value of $1,000 and a 6% coupon rate when the bond is priced at $940?

Question