24. Company has $1,000 face value bonds outstanding with a market price of $1,575.30. the bonds pay interest semi-annually, mature in 17 years, and have a yield to maturity of 12%. What is the current yield?
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24. Company has $1,000 face
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- A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market rate of 7%. Interest is paid annually. What is the amount of interest the bondholders will receive at the end of the year?Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?Neubert Enterprises recently issued $1,000 par value 15-year bonds with a 5% coupon paid annually and warrants attached. These bonds are currently trading for $1,000. Neubert also has outstanding $1,000 par value 15-year straight debt with a 7% coupon paid annually, also trading for $1,000. What is the implied value of the warrants attached to each bond?
- Assume that Bunch Inc. has an issue of 18 -year $1,000 par value bonds that pay 7% interest, annually. Further assume that today's required rate of return on these bonds is 5%. How much would these bonds sell for today? Round off to the nearest $1. Select one:$1,201.32$1,233.79$1,032.56$1,134.8818. Bonds issued by the Coleman Manufacturing Company have a par value of $1,000, which, of course, is also the amount of principal to be paid at maturity. The bonds are currently selling for $850. They have 10 years remaining to maturity. The annual interest payment is 8 percent ($80). Compute the approximate yield to maturity, using Formula 10–2 on page 294.The bonds of Octopus Industries have a face value of $1,000 and currently sell for $ 650.37. They make semi-annual payments of $82 and mature in 18 years. What is the yield to maturity? 21.08% 23.12% 22.10 % 23.88% 25.40%
- Assume that Beach Inc. has an issue of 20-year $1,000 par value bonds that pay 7% interest, annually. Further assume that today's required rate of return on these bonds is 5%. How much would these bonds sell for today?A corporation’s 18-year bond with 6% par value of 1,000/= paying interest semi-annually and is selling at 700/=, what is the yield to maturity of this bond?14. Hamilton Corporation's bonds will mature in 15 years. The bonds have a face value of $1,000 and an 8% coupon rate, paid semiannually. The price of the bonds is $1,111.14. What is the yield to maturity of the Hamilton bonds?
- 13. MJI Corporation bonds mature in 6 years and have a yield to maturity of 8.5 percent. The parvalue of the bonds is $1,000. The bonds have a 10 percent coupon rate and pay interest on asemi-annual basis. Assuming there are no changes to interest rates during the course of theyear, what are the current yield and capital gains yield on the bonds for this year?Your answer A company has bonds outstanding, the par value of which is $1,500. The rate of interest is 10 percent. The bonds will mature in 30 years. Calculate the current price of the bonds if the present yield to maturity is 12 percent18. Bonds issued by the Coleman Manufacturing Company have a par value of $1,000, which, of course, is also the amount of principal to be paid at maturity. The bonds are currently selling for $850. They have 10 years remaining to maturity. The annual interest payment is 8 percent ($80). Compute the approximate yield to maturity, using Formula 10-2 on page 294.
