0
What is the current price of a 1000 par value bond with 6 interest rate for 20 years?
A 5% bond was purchased at $1150 and the maturity is 15 years. Calculating YTM would be based on all of this information. The total premium amount is $150 - divided over 15 years would give you $10 per year. That is the amount that is basically lost each year on the price - if held to maturity.
The way the formula is calculated is you take the yearly real interest - which is $50 and then subtract the lost above par yearly price of $10. This leaves you with a real yearly return of $40. Then divide $40 by the average price of the bond during it's life. Since par ($1000) is the redemption price and $1150 was the price that was paid - the median price would be $1075.
So $40 divided by $1075 would be the YTM = 3.72%
Discount bonds are calculated the same way - except the yearly discount is added on to the nominal interest payments. This would result in a higher YTM calculation.
What else can I help you with?
What is gross redemption yield?
For GRY you need: Years to maturity Par Value Current Value (market Price) Running Yield The formula is: ((( Par + (Interest x years left to maturity)) - Market Price) / Years left to maturity) / Market Price
Jean will receive 8500 per year for 15 years if a 7 percent interest rate is applied what is the current value of the future payments?
If based on the present value of annuities Taking a factor of 9.1 Present value of the 15 years annuities is approx $76,506
A loan at 6 percent interest over 5 years What is the total output?
If the interest is simple interest, then the value at the end of 5 years is 1.3 times the initial investment. If the interest is compounded annually, then the value at the end of 5 years is 1.3382 times the initial investment. If the interest is compounded monthly, then the value at the end of 5 years is 1.3489 times the initial investment.
How can I calculate the depreciation value of a car?
To calculate the depreciation value of a car, subtract the car's current value from its original purchase price, then divide that number by the number of years the car has been owned. This will give you the annual depreciation value of the car.
How much is a 50 series EE savings Bond?
As of November 2023, a 50 series EE savings bond has a face value of $50. However, the purchase price is typically half of the face value, so you would pay $25 for the bond. EE bonds earn interest for 30 years and are guaranteed to double in value if held for 20 years. Always check the U.S. Department of the Treasury's website for the most current rates and details.
What is gross redemption yield?
For GRY you need: Years to maturity Par Value Current Value (market Price) Running Yield The formula is: ((( Par + (Interest x years left to maturity)) - Market Price) / Years left to maturity) / Market Price
How is the store price of a car determined?
The car value is not equivalent to the store price of the said car. The car value diminishes after some years. The value is determined by the current condition, the accident history and the different mechanic jobs done.
Jean will receive 8500 per year for 15 years if a 7 percent interest rate is applied what is the current value of the future payments?
If based on the present value of annuities Taking a factor of 9.1 Present value of the 15 years annuities is approx $76,506
A loan at 6 percent interest over 5 years What is the total output?
If the interest is simple interest, then the value at the end of 5 years is 1.3 times the initial investment. If the interest is compounded annually, then the value at the end of 5 years is 1.3382 times the initial investment. If the interest is compounded monthly, then the value at the end of 5 years is 1.3489 times the initial investment.
What is the cost in 4 years time if the average cost for a new midsized car is about USD 31000 and new car prices tend to go up about 2 percent every year?
If the price increases by 2% each it will be 100 % of the old price + 2 % of the old price = 102 % of the old price each year percent means "out of 100" → 102 % = 102/100 = 102 ÷ 100 = 1.02 Thus to find the price next year, take the price this year and multiply it by 1.02 To find the price after 1 year, multiply the current price by 1.02 giving price after 1 year ≈ current price × 1.02 To find the price after 2 years, multiply the price after 1 year by 1.02, giving: price after 2 years ≈ price after 1 year × 1.02 = current price × 1.02 × 1.02 = current price × 1.02² To find the price after 3 years, multiply the price after 2 years by 1.02, giving: price after 3 years ≈ price after 2 years × 1.02 = current price × 1.02² × 1.02 = current price × 1.02³ From this it can be seen that the price after n years ≈ current price × 1.02ⁿ Thus for the car which starts at $31,000: price after n years ≈ $31,000 × 1.02ⁿ Therefore after 4 years the price will be approx 31,000 × 1.02⁴ ≈ $33,555
How much is 1776 1976 proof set is worth now?
The dual-dated bicentennial coins were issued in 3 different Proof sets for two years.1975-S 6-piece set Issue price $7.00 current value $11.001976-S 6-piece set Issue price $7.00 current value $9.001976-S 3-piece 40% silver set Issue price $15.00 current value $21.00
How can I calculate the depreciation value of a car?
To calculate the depreciation value of a car, subtract the car's current value from its original purchase price, then divide that number by the number of years the car has been owned. This will give you the annual depreciation value of the car.
Price and Yield- An 8 percent semiannual coupon matures in 5 years The bond has a face value of 1000 and a current yield of 8.21 percent What are the bonds price and YTM?
The bond's price is $996.76. The YTM is 8.21%. by E. Sanchez
What is the future value of 1200 a year for 40 years at 8 percent interest?
What is the future value of $1,200 a year for 40 years at 8 percent interest? Assume annual compounding.
How much is a 50 series EE savings Bond?
As of November 2023, a 50 series EE savings bond has a face value of $50. However, the purchase price is typically half of the face value, so you would pay $25 for the bond. EE bonds earn interest for 30 years and are guaranteed to double in value if held for 20 years. Always check the U.S. Department of the Treasury's website for the most current rates and details.
What is the future value of 210000 with 4 percent interest in 8 years?
It depends on whether the 4% interest is per annum or for 8 years altogether. Also, you have to see if it is a simple interest or compounded interest.
Present value is so important for corporate finance?
$500 if interest for five years at a 7% interest rate
