Exam 15: Bond Valuation

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 $10 000.00, 5% bond with semi-annual coupons redeemable at 105 in 23 years is purchased at 102.5. What is the approximate yield rate?

A $100 000, 8.75% bond with interest payable annually is redeemable at 103 in four years. What is the purchase price to yield 7% compounded quarterly?

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 $25 000, 8% bond with semi-annual coupons, redeemable at par in 12 years, is purchased to yield 6% compounded semi-annually. Determine the gain or loss if the bond is sold two years later at 107.25.

What is the purchase price of a $10 000, 3.5% bond with semi-annual coupons redeemable at 104 in seven years if the bond is bought to yield 2.5% compounded semi-annually?

A $40 000.00, 5% bond with semi-annual coupons redeemable at par in 14 years is purchased to yield 7% compounded semi-annually. What is the gain or loss if the bond is sold three years before maturity at 99.75?

A $100 000 bond, redeemable at 110 in seven years with 6.75% coupons payable annually, is bought to yield 7.25% compounded annually. (i) Determine the discount and the purchase price. (ii) Construct a schedule of accumulation of discount.

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?

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 $10 000, 8.5% bond with semi-annual coupons redeemable at par on March 1, 2005, was purchased on September 22, 1997, to yield 10.06% compounded semi-annually. What was the purchase price?

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 $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 a $100 000, 8% bond with semi-annual coupons redeemable at par purchased eleven-and-a-half years before maturity to yield 9% compounded semi-annually. The bond was sold five years later at 99.125.

A 4.5% annuity bond of $500 000 with interest payable quarterly is to be redeemable at par in seven years. a) What is the purchase price to yield 6% compounded quarterly? b) What is the book value after 6 years? c) What is the gain or loss if the bond is sold six years after the date of purchase at

A $100 000, 8% bond with semi-annual coupons redeemable at par on April 25, 2018, was purchased on June 25, 2009, at 94.125. What was the approximate yield rate?

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 $100 000 bond bearing interest at 8% payable semi-annually is bought five years before maturity to yield 6% compounded annually. If the bond is redeemable at par, what is the purchase price?

A $1000 bond, with interest at 8% payable semi-annually on January 1 and July 1, was purchased on February 8, 2012. The bond matures on July 1, 2015 and yields 2.2% compounded semi-annually. What is the purchase payment for the bond?

A $100 000, 4% bond with semi-annual coupons is redeemable at 108. What is the purchase price to yield 5.5% compounded semi-annually seven years before maturity?