A bond matures in 6 years, has a face value of $100,000, an effective interest rate...

A bond matures in 6 years, has a face value of $100,000, an effective interest rate of 4%, stated interest rate of 3% and semiannual interest payments. It sells for $94,712. Amortize the bond discount.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Company A issues a bond with a $100,000 face value. The bond matures in three years....

Company A issues a bond with a $100,000 face value. The bond matures in three years. The stated interest rate is 9% and the market interest rate is 12%. Interest payments are made every 6 months. Record the journal entry for the issuance of the bond.

A 7% semiannual coupon bond matures in 6 years. The bond has a face value of...

A 7% semiannual coupon bond matures in 6 years. The bond has a face value of $1,000 and a current yield of 7.5649%. What is the bond's price? Do not round intermediate calculations. Round your answer to the nearest cent. $______ What is the bond's YTM? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Do not round intermediate calculations. Round your answers to two decimal places. ______%

An 8% semiannual coupon bond matures in 6 years. The bond has a face value of...

An 8% semiannual coupon bond matures in 6 years. The bond has a face value of $1,000 and a current yield of 8.4681%. What is the bond's price? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the bond's YTM? (Hint: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.) Do not round intermediate calculations. Round your answers to two decimal places.

A 7% semiannual coupon bond matures in 6 years. The bond has a face value of...

A 7% semiannual coupon bond matures in 6 years. The bond has a face value of $1,000 and a current yield of 7.5864%. What is the bond's price? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the bond's YTM? (Hint: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.) Do not round intermediate calculations. Round your answers to two decimal places. %

A bond has a face value of $1,000, coupon rate of 8%, and matures in 6...

A bond has a face value of $1,000, coupon rate of 8%, and matures in 6 years. Imagine that the market interest rate is 6%, but immediately after you buy the bond the rate drops to 5%. What is the immediate effect on the bond price? Hint: the effect is the price of the bond after the change minus the price of the bond before the change.

A bond that matures in 15 years has a $1,000par value. The annual coupon interest rate...

A bond that matures in 15 years has a $1,000par value. The annual coupon interest rate is 12 percent and the market's required yield to maturity on acomparable-risk bond is 14 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?

A bond with a face value of $1,000 matures in 9 years and has a 7%...

A bond with a face value of $1,000 matures in 9 years and has a 7% semiannual coupon. The bond currently is traded at $920. Which of the following statements is CORRECT?

A bond with a face value of $1,000 matures in 12 years and has a 9...

A bond with a face value of $1,000 matures in 12 years and has a 9 percent semiannual coupon. The bond has a nominal yield to maturity of 6.85%, and it can be called in 4 years at a call price of $1,045. Assume equilibrium, which of the following statement is correct? (hint: what kind of bond is this?) Select one: a. The bond is currently traded at a discount. b. The expected current yield will decrease. c. All else...

An 8% semiannual coupon bond matures in 4 years. The bond has a face value of...

An 8% semiannual coupon bond matures in 4 years. The bond has a face value of $1,000 and a current yield of 8.3561%. What is the bond's price? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the bond's YTM? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Do not round intermediate calculations. Round your answers to two decimal places. %

A 7% semiannual coupon bond matures in 5 years. The bond has a face value of...

A 7% semiannual coupon bond matures in 5 years. The bond has a face value of $1,000 and a current yield of 7.4658%. What are the bond's price and YTM? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Do not round intermediate calculations. Round your answer for the bond's price to the nearest cent and for YTM to two decimal places. Bond’s price: $ YTM: %

Subjects