IS - Sampoerna. O DashboardVitalSource Booksh. O Spotify - Web PlayerCompany XYZ's bonds have 12 years remaining to maturity, interest is paidannually, the bonds have $1,000 par value, and the coupon rate is 8%. Thebonds have a yield to maturity of 9%. What is the current market price ofthese bonds?*a. 828.78b. 968.39c. 1,000,00d. 1,075.36O e. none of the aboveWhich of the following statement is (are) correct?a zero coupon bend means the bond does not give (pay) coupon until maturityO b. the price of zero coupon bond is always at discount until its maturityO c. the price of bond will be at discount when the coupon is lower than its interest rada and be. a, b and c

Face value = $1000 Coupon = 8% of 1000 = $80 r = YTM = 9% n = 12 years

Company XYZ's bonds have 12 years remaining to maturity, interest is paid annually, the bonds have $1,000 par value, and the coupon rate is 8%. The bonds have a yield to maturity of 9%. What is the current market price of these bonds?* O a. 828.78 b. 968.39 O c. 1,000,00 O d. 1,075.36 e. none of the above

Company XYZ's bonds have 12 years remaining to maturity, interest is paid annually, the bonds have $1,000 par value, and the coupon rate is 8%. The bonds have a yield to maturity of 9%. What is the current market price of these bonds?* O a. 828.78 b. 968.39 O c. 1,000,00 O d. 1,075.36 e. none of the above

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

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O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 20 years. Their nominal annual, not semiannual yield to maturity is 7.75%, they pay interest semiannually, and they sell at a price of $700. What is the bond's nominal coupon interest rate? Do not round your intermediate calculations. a. 4.77% b. 2.39% c. 2.30% d. 4.41% e. 4.60%
Smithson Co.'s Class A bonds have 10 years to go until maturity. They have a $1,000 face value and carry coupon rates of 8%. Approximately what do the bonds yield at the following prices? Assume bond coupons are paid semiannually. a. $770. b. $875. c. $1,000.
5. Grohl Co. issued 8-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments. If the YTM on these bonds is 11 percent, what is the current bond price? a) $1,531.43 b) $1,010.00 c) $718.96 d) $1,005.00 e) $1,000.00
Draiman Corporation has bonds on the market with 23.5 years to maturity, a YTM of 7 percent, a par value of $1,000, and a current price of $1,051. The bonds make semiannual payments. What must the coupon rate be on these bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Wildhorse Corp. has 18-year bonds outstanding. These bonds, which pay interest semiannually, have a coupon rate of 9.875 percent and a yield to maturity of 6.0 percent. Assume face value is $1,000. Problem 8.30(a) Your answer is incorrect. Compute the current price of these bonds. (Round answer to 2 decimal places, e.g. 15.25.) Current price $ EA
Quade, Inc. bonds have a 4% coupon rate with semiannual coupon payments and a $1,000 par value. The bonds have 11 years until maturity, and sell for $990. What is the current yield for Quade's bonds? OA. 4.32% OB. 2.02% OC. 6.95% OD. 3.45% O E. None of the above.
Solvay Corporation's bonds have a 10-year maturity, a 12% semiannual coupon, and a par value of $1,000. The current market rate is 9%, based on semiannual compounding. What is the bond's price? O s1,276.02 O $1,195.12 O s1,192.53 $1,273.86 O s1,271.81
Nesmith Corporation’s outstanding bonds have a $1,000 par value, an8% semiannual coupon, 14 years to maturity, and an 11% YTM. What is the bond’s price?
Brooks Books’ bonds have 13 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 8 percent; and the yield to maturity is 7.5 percent. What is the bond’s current market price? a. $1,000.00 b. $980.72 c. $1,040.63 d. $650.07 e. $1,080.00
A. Table below is information about three USD10000 par value bonds, each of which pays coupon semiannually. The required rate of return on each bond is 14%. Calculate the value of the bonds and determine whether the bond is selling at discount, premium or par value. Bond Coupon Rate (%) Maturity (years) 1 8 5 2 14 10 3 16 15 B. Using the Interpolation Method to calculate the YTM for the below Bonds: > The par value USD18000 > Coupon Rate 10% every year > Maturity period 10 years > Market Value of bond USD21800
Wesimann Co. issued 11-year bonds a year ago at a coupon rate of 8.3 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 6.6 percent, what is the current bond price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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