Question

#6. Five years ago, you purchased five corporate bonds that each pay 5.80 percent annual interest....

#6. Five years ago, you purchased five corporate bonds that each pay 5.80 percent annual interest. Each bond has a face value of $1,000. how much interest do you earn on the five bonds each year?
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Interest earned on bond each year = Face Value of Bond*Rate of Interest

Interest earned on 5 bonds each year = 1,000*5.80%*5

= $290

Hence, the answer is $290

Add a comment
Know the answer?
Add Answer to:
#6. Five years ago, you purchased five corporate bonds that each pay 5.80 percent annual interest....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Three years ago you purchased a Kraft Heinz corporate bond that pays 4.498 percent annual interest....

    Three years ago you purchased a Kraft Heinz corporate bond that pays 4.498 percent annual interest. The face value of the bond is $1,000. What is the total dollar amount of interest that you received from your bond investment over the three-year period? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

  • Five years ago, you purchased a $1,000 par value corporate bond with a coupon interest rate...

    Five years ago, you purchased a $1,000 par value corporate bond with a coupon interest rate of 3.5 percent. Today comparable bonds are paying 4 percent. What is the approximate dollar price for which you could sell your bond? (Round your answer to 2 decimal places.) Approximate market value

  • 1. You purchased a 6.25% bond 4 years ago at par. The bond matures 26 years...

    1. You purchased a 6.25% bond 4 years ago at par. The bond matures 26 years from now and pays interest at the end of each 6 months. Similar bonds are being issued that pay 8.5% interest. What is your $1,000 bond worth today? 2. Rob Morrisey purchased a $1,000 bond that was quoted at 102.25 and paying 8 7/8% interest. How much did Rob pay for the bond? How much annual interest will be received?

  • 3. Interest Rates You have just purchased a home and taken out a $460,000 mortgage. The...

    3. Interest Rates You have just purchased a home and taken out a $460,000 mortgage. The mortgage has a 30-year term with monthly payments and an APR of 6.08%. a. How much will you pay in interest, and how much will you pay in principal, during the first year? b. How much will you pay in interest, and how much will you pay in principal, during the 20th year (i.e., between 19 and 20 years from now)? 6. Bond Valuation...

  • Eight years ago, Burt Brownlee purchased a government bond that pays 6.50 percent interest. The face...

    Eight years ago, Burt Brownlee purchased a government bond that pays 6.50 percent interest. The face value of the bond was $1,000. (a) What is the dollar amount of annual interest that Burt received from his bond investment each year? (Do not round intermediate calculations.Round your answer to 2 decimal places.) ts Amount of annual interest 65.00 eBook Print ferences (b) Assume that comparable bonds are now paying 6.15 percent. What is the approximate dollar price for which Burt could...

  • (Interest rate risk) Four years ago, your corporate treasurer purchased, for the firm, a 30-year bond...

    (Interest rate risk) Four years ago, your corporate treasurer purchased, for the firm, a 30-year bond at its par value of $1,000. The coupon rate on this security is 9 percent. Interest payments are made to bondholders once a year. Currently, bonds of this particular risk class are yielding investors 11 percent. A cash shortage has forced you to instruct your treasurer to liquidate the bond. a. At what price will your bond be sold? Assume annual compounding. b. What...

  • 4 years ago you purchased a 13 year maturity, 2.4% coupon annual pay bond at a...

    4 years ago you purchased a 13 year maturity, 2.4% coupon annual pay bond at a price of $101 per $100 of face value. Shortly after you purchased the bond, yields changed to 7.79%. If you sell the bond today at a price of $92 per $100 of face value, what is your annualized holding period return?

  • 3 years ago you purchased a 12 year maturity, 3.4% coupon annual pay bond at a...

    3 years ago you purchased a 12 year maturity, 3.4% coupon annual pay bond at a price of $93 per $100 of face value. Shortly after you purchased the bond, yields changed to 5.04%. If you sell the bond today at a price of $105 per $100 of face value, what is your annualized holding period return?

  • Consider two corporate bonds. Both bonds pay annual interest and have face values of $1,000. Bond...

    Consider two corporate bonds. Both bonds pay annual interest and have face values of $1,000. Bond A matures in 10 years, has 5% annual coupons and currently has 5 % YTM. Bond B matures in 15 years, has 5 % annual coupons Jand currently has 5% YTM. If the market rate of interest jumps unexpected ly to 5.5%, what will happen to the prices of the bonds? The price of both bonds will decline by the same dollar amount. The...

  • (Bond valuation) Flora Co.'s bonds, maturing in 6 years, pay 9 percent interest on a $1,000...

    (Bond valuation) Flora Co.'s bonds, maturing in 6 years, pay 9 percent interest on a $1,000 face value. However, interest is paid semiannually. If your required rate of retum is 14 percent, what is the value of the bond? How would your answer change the interest wore and annually? a. If the interest is paid semiannually, the value of the bond is S. (Round to the nearest cent) b. If the interest is paid annually, the value of the bond...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT