Blue Co. wants to buy a bond of ABC which has a maturity of 5 years. This bond has a par value of P3,000 and pays P300 annual coupon. The yield to maturity of these bonds is determined to be 15%. What is the total value of the bond after a year? (No rounding- off of present value factors, final answer to be round-up to 2 decimal places) *

Blue Co. wants to buy a bond of ABC which has a maturity of 5 years. This bond has a par value of P3,000 and pays P300 annual coupon. The yield to maturity of these bonds is determined to be 15%. What is the total value of the bond after a year? (No rounding- off of present value factors, final answer to be round-up to 2 decimal places) *

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

None
A firm's bonds have a maturity of 8 years with a $1,000 face value, have an 11% semiannual coupon, are callable in 4 years at $1,144.52, and currently sell at a price of $1,264.97. What are their nominal yield to maturity and their nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places. YTM: % YTC: % What return should investors expect to earn on these bonds? Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM. Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC. Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM.
Charlton Wineries (CW) has outstanding 10-year, €1,000 face value bonds with a 6% coupon rate (semi-annual payments). The bonds are callable in five years and thereafter at par value (on a coupon date). The bonds were issued one year ago and currently sell for €1,050. What is the yield to maturity of the bonds? What is the yield to call? What is the yield to worst?
XYZ pty Ltd is considering investing in one of two outstanding bonds. The bonds offer 11% coupon interest rates and pay annual interest. Bond A has exactly 5 years to maturity and bond B has 15 years to maturity. You are appointed to evaluate the bond. Calculate the value of bond A and B if the required return (YTM) is 9% A. R1077.79 & R1261.21 Respectively B. R1177.79 & R1161.21 Respectively C. R1 077.79 & R1 161.21 Respectively D. R1095 & R1161.21 Respectively
For all questions, assume par value is R 1,000 and semiannual bond interest payments. b) ABSA has one outstanding bond issue with a coupon of 8% which will mature in 5 years. The bond now sells for R 1,141.69. What is the yield to maturity on this bond
Blue Co. wants to buy a bond of ABC which has a maturity of 5 years. This bond has a par value of P3,000 and pays P300 annual coupon. The yield to maturity of these bonds is determined to be 15%. What is the total value of the bond after a year? (No rounding-off of present value factors, final answer to be round-up to 2 decimal places)
Assume a par value of $1,000. Caspian Sea plans to issue a 13.00 year, annual pay bond that has a coupon rate of 7.85%. If the yield to maturity for the bond is 8.42%, what will the price of the bond be? Answer format: Currency: Round to: 2 decimal places. C unanswered not_submitted Attempts Remaining: Infinity Submit #4 What is the value today of a money machine that will pay $1,077.00 per year for 19.00 years? Assume the first payment is made 5.00 years from today and the interest rate is 14.00%. Submit Answer format: Currency: Round to: 2 decimal places.
A firm's bonds have a maturity of 8 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 4 years at $1,047.04, and currently sell at a price of $1,091.13. What is their nominal yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. What is their nominal yield to call? Do not round intermediate calculations. Round your answer to two decimal places.
Give typing answer with explanation and conclusion What would the YTC on an 8.5% annual coupon bond with maturity of 12 years and a face value of $1,000 be if it were selling for $987, carried a call penalty of $85, and you expected it to be called in three years.
Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,075 and it sells for $1,180. What are the bond's nominal yield to maturity and its nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places. YTM: YTC What is the current yield? What is the expected capital gains (or loss) yield for the coming year? Use amounts calculated in above requirements for calculation, if required. Negative value should be indicated by a minus sign. Round your answer to two decimal places.
Mitzi's, II. bonds offer a 5% semiannual coupon at a current market price of $989, 20 years to maturity, and 4 years to call. The bonds have a face value of $1,000 and a call price of $1,025. What is the current yield on these bonds?
Please show step by solutions. do not skip steps

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS