Questions from Business Mathematics

Q: A $1000, 5.5% coupon bond has 8

A $1000, 5.5% coupon bond has 8 1 2 years remaining until maturity. Calculate the bond discount if the required return in the bond market is 6.3% compounded semiannually.

Q: Evaluate values of the variables. Calculate the result accurate to the

Evaluate values of the variables. Calculate the result accurate to the nearest cent. I r t for r = 0.095, I = $23.21, t = 283 365

Q: A $5000, 5.75% coupon bond has 16

A $5000, 5.75% coupon bond has 16 years remaining until maturity. Calculate the bond discount if the required return in the bond market is 6.5% compounded semiannually.

Q: A $25,000, 6.25% coupon bond

A $25,000, 6.25% coupon bond has 21 1 2 years remaining until maturity. Calculate the bond premium if the required return in the bond market is 5.2% compounded semiannually.

Q: Eight years ago, Yan purchased a $20,000 face

Eight years ago, Yan purchased a $20,000 face value, 6% coupon bond with 15 years remaining to maturity. The prevailing market rate of return at the time was 7.2% compounded semiannually; now it is 4....

Q: Bond A and Bond B both have a face value of $

Bond A and Bond B both have a face value of $1000, each carries a 5% coupon, and both are currently priced at par in the bond market. Bond A matures in 2 years and Bond B matures in 10 years. If the p...

Q: Bond C and Bond D both have a face value of $

Bond C and Bond D both have a face value of $1000, and each carries a 4.2% coupon. Bond C matures in 3 years and Bond B matures in 23 years. If the prevailing required rate of return in the bond marke...

Q: Bonds A, B, C, and D all have a

Bonds A, B, C, and D all have a face value of $1000 and carry a 7% coupon. The time remaining until maturity is 5, 10, 15, and 25 years for A, B, C, and D, respectively. Calculate their market prices...

Q: Calculate the purchase price of each of the $1000 face value

Calculate the purchase price of each of the $1000 face value bonds. Issue date = June 15, 2005 Maturity date = June 15, 2030 Purchase date = Dec 15, 2011 Coupon rate (%) = 5.0 Market rate (%) = 6.0

Q: Bonds E, F, G, and H all have a

Bonds E, F, G, and H all have a face value of $1000 and carry a 7% coupon. The time remaining until maturity is 5, 10, 15, and 25 years for E, F, G, and H, respectively. Calculate their market prices...