Exam 15: Bond Valuation

A $20 000, 3.6% bond with semi-annual coupons is purchased 5 years before maturity. Calculate the discount or premium if the bond is sold to yield 3% compounded semi-annually.

A $100 000, 6.0% bond with semi-annual coupons redeemable at par is bought 17.5 years before maturity at 74.25. What was the approximate yield rate?

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%

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%.

A $100 000, 9.0% bond with semi-annual coupons redeemable at par on March 1, 2015, was purchased on September 22, 2007, to yield 10.00% compounded semi-annually. What was the purchase price?

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.

What is the amount of premium/discount amortized or accumulated for the second payment interval of a $1500 bond that sold for $1627.32? The bond rate is 6.95% compounded semi-annually and the yield rate is 6% compounded semi-annually.

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%.

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 $250 000, 6.5% bond with semi-annual coupons redeemable at par is bought 17.5 years before maturity at 78.25. What was the approximate yield rate?

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?

Bonds in denominations of $100 000 redeemable at 104 are offered for sale. If the bonds mature in ten years and six months and the coupon rate is 5.5% payable quarterly, what is the market price of the bonds to yield 7.2% compounded quarterly?

A 6.3% annuity bond of $12 000 with interest payable monthly is to be redeemable at par in nine years with a yield 7.9% compounded monthly. What is the gain or loss if the bond is sold eight years after the date of purchase at 101.325?

A $100 000, 7.5% bond with semi-annual coupons redeemable at 106 is bought three years before maturity to yield 8% compounded semi-annually. What is the purchase price?

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%.

From his retirement fund, Jack buys a $50 000, 5.4% bond with quarterly interest coupons at 104.1, redeemable at par in 15 years. What is the approximate yield rate?

Bonds with a face value of $130 000 redeemable at par bearing 4.5% coupons payable quarterly are sold six years before maturity to yield 5.25% quarterly. Determine a) the premium or discount; b) the purchase price?

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?

What is the quoted price of a bond that has 4.5 years until maturity? The face value of the bond is $5000 and it has a coupon rate of 8.1% compounded semi-annually and a yield rate of 8.6% compounded semi-annually.

Nick buys a $25 000, 5.4% bond with quarterly interest coupons, 3 years before maturity, to yield 3.5% compounded quarterly. Determine the premium or discount.