Exam 15: Bond Valuation

Six $1500 bonds with 4.5% coupons payable semi-annually are bought to yield 5% compounded monthly. If the bonds are redeemable at par in eight years, what is the purchase price?

A $200 000 bond is redeemable at 108 in 14 years. If interest on the bond is 5.5% payable semi-annually, what is the purchase price to yield 4% compounded semi-annually?

A $150 000 bond redeemable at par on October 1, 2026, is purchased on January 15, 2014. Interest is 6% payable semi-annually and the yield is 7.5% compounded semi-annually. a)What is the market price of the bond? b)How much interest has accrued? c)What is the cash price?

Find the gain or loss on the sale without constructing a bond schedule for six $3500, 3.5% bonds with interest payable semi-annually redeemable at par bought twenty-one years before maturity to yield 5.5% compounded semi-annually. The bonds were sold three years later at 102.

Nick buys a $25 000, 5.4% bond with quarterly interest coupons, 3 years before maturity, to yield 7% compounded quarterly. Construct a schedule of accumulation of discount.

A $50 000, 6% bond with semi-annual coupons redeemable at par on April 25, 2018, was purchased on June 25, 2009, at 94.378. What was the approximate yield rate?

A $63 000 bond bearing interest at 9.1% bond payable semi-annually matures in 20 years. If it is bought to yield 11.1% compounded semi-annually, what is the purchase price of the bond?

A $10 000, 7.2% bond with semi-annual coupons is purchased 3 years before maturity. Calculate the discount or premium if the bond is sold to yield 6% compounded semi-annually.

Twenty $1 000 bonds redeemable at par bearing 6% coupons payable quarterly are sold eight years before maturity to yield 5.5% compounded annually. What is the purchase price of the bonds?

A $1000, 6.5% bond redeemable at par in four years bears coupons payable annually. Compute the premium or discount and the purchase price if the yield, compounded annually, is 7.5%.

Find the gain or loss on the sale without constructing a bond schedule for a $50 000, 6% bond with semi-annual coupons redeemable at par purchased twelve years before maturity to yield 10% compounded semi-annually. The bond was sold five years later at 99.375.

Nick buys a $25 000, 5.4% bond with quarterly interest coupons, 3 years before maturity, to yield 3.5% compounded quarterly. Construct a schedule of amortization of premium.

A $50 000 bond bears interest at 4.5% payable semi-annually and is redeemable at par on November 4, 2022. The bond is sold on March 20, 2013, to yield 5.5% compounded semi-annually. What is the cash price?

What is the purchase price of a bond that has 4 years and 6 months until it matures? The face value of the bond is $3000 and the coupon rate is 5.2% compounded semi-annually. The yield rate is 7.5% compounded semi-annually.

A $30 000, 3% bond redeemable at par is purchased 7 years before maturity to yield 5.5% compounded quarterly. If the bond interest is payable quarterly, what is the purchase price of the bond?

A $1 000 000, 9% bond with interest payable annually is redeemable at 104 in 5 years. What is the purchase price to yield 8% compounded quarterly?

A $1000, 6% bond redeemable at par with semi-annual coupons was purchased 10 years before maturity to yield 5% compounded semi-annually. The bond was sold 3 years later at 102. Calculate the gain or loss on the sale of the bond.

A $5000, 6.5% bond with semi-annual coupons redeemable at 108 is bought two years before maturity to yield 6% compounded semi-annually. What is the purchase price?

Three $25 000, 6% bonds with semi-annual coupons redeemable at par were bought eight years before maturity to yield 7% compounded semi-annually. Determine the gain or loss if the bonds are sold at 89.625 four years later.

Nine $10 000, 4% bonds with interest payable semi-annually and redeemable at par are purchased 8.5 years before maturity. Find the premium or discount and the purchase price if the bonds are bought to yield 6%.