Exam 15: Bond Valuation

A $25 000, 6% bond redeemable at par is purchased 11 years before maturity to yield 6.9% compounded semi-annually. If the bond interest is payable semi-annually, what is the purchase price of the bond?

Ten $10 000, 4% bonds with interest payable semi-annually and redeemable at par are purchased 18.5 years before maturity. Find the premium or discount and the purchase price if the bonds are bought to yield 7%.

Clarington issued 15 year bonds in the amount of $500 000. Interest on the bonds is 2.2% payable annually. What is the issue price of the bonds, if the bonds are sold to yield 2.8% compounded quarterly?

Nine $2000, 9% bonds with interest payable semi-annually and redeemable at par are purchased 7 years before maturity. Find the premium or discount and the purchase price if the bonds are bought to yield 4%.

A $1000, 7% bond redeemable at par in eight years bears coupons payable annually. Compute the premium or discount and the purchase price if the yield, compounded annually, is: a)6.5% b)7.5% c)8.5%

A $200 000.00, 6% bond with semi-annual coupons is redeemable at par. What is the purchase price of the bond six years before maturity to yield 8% compounded semi-annually?

Six $20 000, 2% bonds with interest payable semi-annually and redeemable at par are purchased 18.5 years before maturity. Find the premium or discount and the purchase price if the bonds are bought to yield 5.9%.