Draiman Corporation has bonds on the market with 18.5 years to maturity, a YTM of 6.5 percent, a par value of $1,000, and a current price of $1,048. 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.)

Draiman Corporation has bonds on the market with 18.5 years to maturity, a YTM of 6.5 percent, a par value of $1,000, and a current price of $1,048. 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.)

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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Westco Company 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 in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Henley Corporation has bonds on the market with 16 years to maturity, a YTM of 10.5 percent, a par value of $1,000, and a current price of $943. The bonds make semiannual payments. What must the coupon rate be on the bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Gabriele Enterprises has bonds on the market making annual payments, with seven years to maturity, a par value of $1,000, and selling for $986. At this price, the bonds yield 7.8 percent. What must the coupon rate be on the bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Coupon rate %
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Draiman Corporation has bonds on the market with 20 years to maturity, a YTM of 11.3 percent, a par value of $1,000, and a current price of $935. The bonds make semiannual payments. What must the coupon rate be on the bonds? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Coupon rate %
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Kk.173.
Westco Company issued 15-year bonds a year ago at a coupon rate of 8.1 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 6.4 percent, what is the current bond price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current bond price
The Garland Corporation has a bond outstanding with a $70 annual interest with semiannual payment, a market price of $890, and a maturity date in 5 years. Assume the par value of the bonds is $1,000. Find the following: Use Appendix B and Appendix C. (Do not round your intermediate calculations. Round the final answers to 2 decimal places.) a. The coupon rate (nominal yield). b. The current yieldi c. The yield to maturity. d. The yield an investor would realize if coupon payments were reinvested at 8 percent (holding period return) 786

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