Exam 15: Bond Valuation

A $150 000 bond bearing interest at 6% payable semi-annually is bought eight years before maturity to yield 4.5% compounded annually. If the bond is redeemable at par, what is the purchase price?

A $15 000, 4.4% bond with semi-annual coupons redeemable at par on April 25, 2025, was purchased on June 25, 2016, at 93.725. What was the approximate yield rate?

A $50 000, 4% bond with semi-annual coupons is purchased three years before maturity. Calculate the discount or premium if the bond is sold to yield 6% compounded semi-annually.

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.

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 $40 000 bond with semi-annual coupon payments at 5.5% compounded semi-annually is redeemable at par in 12 years. Calculate the yield rate if the bond is purchased at 102.5.

A $50 000 bond that pays 5% semi-annually is redeemable at par on July 15, 2025.It is quoted at 97.5 on December 2, 2013. Determine the yield rate.