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Bond Valuation

The Amount of Time for a Bond to Mature

Beach Combers International has 5.75% coupon bonds outstanding with a current market price of $689.40. The yield to maturity is 11.20% and the face value is $1,000. Interest is paid semiannually. How many years is it until these bonds mature?

Yield to maturity..

27. Culpepper Supply has a bond issue outstanding that pays a 7.5 % coupon and matures in 14 years. The bond have a par value $1,000 and market price of $942.90. Interest is paid semiannually. What is the yield to maturity?

Bond Price Movements

Bond X is a premium bond making annual payments. The bond pays a 14 percent coupon, has a yield to maturity (YTM) of 11 percent, and has 20 years to maturity. Bond Y is a discount bond making annual payments. This bond pays a 11 percent coupon, has a YTM of 14 percent, and also has 20 years to maturity. If interest rates remain

Bond valuation, Yield to maturity

Hilo Inc. of Des Moines Iowa has floated some zero coupon bonds to finance it's capital expenditures. The Par Value of each bond is $1000. a, Assuming a market price of $300 with a maturity of 30 years, determine and discuss the bonds yield to maturity. b. Assuming a market price of $300 and a yield to maturity of 8%, det

Asset Valuation and Corporate Bonds of Ciza Inc.

Ciza Inc. raised $100 million by floating corporate bonds. Each bond paid a coupon of 7% with a par value of $1000 and will mature in 4 years. a. Determine the current market value of the bond if the required rate of return is 14%. b. Holding everything constant and assuming that the coupon is paid on a semiannual basis,

Bonds Payable - calculate issue price and amortize premium

Need assistance with b, c and d. Part (a) is complete. Worksheet is attached. I am confused with premium amortization the calculations and journal entries. Bonds Payable - calculate issue price and amortize premium. On January 1, 2009, Learned, Inc. issued $60 million face amount of 20-year, 14% stated rate bonds when market

A 20-year bond with a 7.50% semi-annual coupon bond was sold at par 10 years ago.

Please help with the attached file. I. A 20-year bond with a 7.50% semi-annual coupon bond was sold at par 10 years ago. Now the 10-year semi-annual payment corporate bond has a required return (or YTM) of 8.25%. Calculate the bond's market price. The par level of bonds is $1000. II. a) What is the duration of a 2-year bond

Calculate interest payments and price of a bond.

A general motors bond (face value of $1000) carries a coupon rate of 8 percent, has 9 years until maturity, and sells at a yeild to maturity of 9 percent a. what interest payments do bondholders receive each year? b. At what price does the bond sell? (assume annual interest payments.) c what will happen to the bond pric

High Noon Sun, Inc: Bond Maturity

High Noon Sun, Inc. has a 5 percent, semiannual coupon bond with a current market price of $988.52. The bond has a par value of $1,000 and a yield to maturity of 5.29 percent. How many years is it until this bond matures?

Using Bond Quotes

Suppose the following bond quotes for IOU Corp. appear in the financial page of today's newspaper. Assume the bond has a value of $1000 and the current date is April 15,2007. What is the yield to maturity of the bond? What is the current yield? What is the yield to maturity on a comparable U.S. Treasury issue?

Inflation, rate of return

1. If the CPI today is equal to 135 and five years ago it was 105, then the annual compound inflation rate is approximately 2. A deposit of $1,000 invested at 3.75%, compounded annually, will be worth approximately how much at the end of 5 years? 3. Assume that a proposed investment will generate revenue of $3,000 at t

Bond Valuation with a Non-Flat Term Structure

Suppose you observe the following prices for zero-coupon bonds (pure discount bonds) that have no risk of default: Maturity Price per $1 of Face Value Yield to Maturity 1 year 0.97 3.093% 2 years

Valuation of known cash flows

Assume that all of the bonds listed in the following table are the same except for their pattern of promised cash flows over time. Prices are quoted per $1 of face value. Use the information in the table and the Law of One Price to infer the values of the missing entries. Assume that the coupon payments are annual. coupon

Payback Method, Compute Cash Flow, Compute Price of Bonds

I would like to have these problems worked out in Word format please. Problem 1) You are called in as a financial analyst to appraise the bonds of the Holtz Corporation. The $1,000 par value bonds have a quoted annual interest rate of 14 percent, which is paid semiannually. The yield to maturity on the bonds is 12 percent an

Callaghan Motor's Bonds: Maturity and Interest

1. Callaghan Motor's bonds have 10 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 8 percent; and the yield to maturity is 9 percent. What is the bond's current market price? 2. A bond has a 1,000 par value, 10 years to maturity, a 7 percent annual coupon, and

Bond Valuation: Interest and Semiannual Compounding

Please use Excel and show a cash flow time line to solve the following: I'm purchasing a 10-year bond with a $1,000 face value that pays interest of $60 semiannually. The yield to maturity is 10 percent with semiannual compounding. What price should I pay for the bond?

Chardin Corporation issued bond entries

On September 1 2007, Chardin Corporation issued $300,000, 8%, 10 year bonds at face value. Interest is payable annually on Sept. 1. Chardin year end is December 31. Prepare journal entries to record the following events. a) The issuance of the bonds b) The accrual of interest on December 31, 2007 c) The payment of interest

Investment questions: nominal annual return, effective annual rate, bond's market price, one-year interest rate expected one year from now, duration of a five-year bond, decrease in the market rates of interest, discount quote, commercial paper, T-Bill, annuity, mortgage, foreign exchange rate, ARM, fixed rate mortgages

Assume all bonds have a face value of $1,000.00, unless otherwise informed 1. You buy an investment today for $9,825. You sell the investment in 90 days for $10,000. a. What is the nominal annual return on this investment? b. What is the effective annual rate on this investment? 2. A 10 year semi-annual payment c

Bond Value Semiannual Analysis

Please help with the following questions. Joe wants to buy a bond for AB company. The $1000 par value bonds have a quoted annual interest rate of 9 % and interest is paid semiannually. The yield to maturity on the bonds is 12% annual interest. There are 15 years to maturity. Compute the price of the bonds based on semiannual

What is the discount yield, bond yield, and effective annual return on a $1million Treasury bill? Calculate the T-bill's quoted discount yield. Calculate the T-bill's bond equivalent yield. Calculate the discount yield and bond equivalent yield on the commercial paper. Calculate the conversion value of each bond. Calculate your monthly payments on this mortgage. What is mortgage sale?

1. What is the discount yield, bond yield, and effective annual return on a $1million Treasury bill that currently sells at 97 3/8 percent of its face value and is 65 days sells at maturity? 2. Suppose you purchase a T-bill that is 125 days from maturity for $9,765. The T-bill has a face value of $10,000. a. Calculate the T