Dry Seal plans to issue bonds to expand operations. The bonds will have a par value of P1,000, a 10-year maturity, and a coupon interest rate of 9%, paid semiannually. Current market conditions are such that the bonds will be sold to net P937.79. What is the yield-to-maturity of these bonds? Group of answer choices 8% 10% 9% 11%
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- (c) Re-calculate the prices of the bonds if the required return falls to 9%.(d) Explain how underwriters use the overallotment option in IPOs.D Bond P is a premium bond with a 9 percent coupon. Bond D is a 4 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 6 percent, and have four years to maturity. What is the current yield for Bond P and Bond D? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) Bond P Bond Current yield 8.15% 4.30 % If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond P and Bond D? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))) Bond P Bond D Capital gains yield -2.15 % 1.70 %Zanobia Co.'s bonds currently sell for $1,150. They have a 8% annual coupon rate (but paid semiannually) and a 30-year maturity, and are callable in 10 years at $1,100. What is the yield to call of the bonds? Select one: O a. 6.64% O b. 4.34% O c. 4.57% O d. 4.12% e. 3.92% 4
- Haswell Enterprises' bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 9.25%, based on semiannual compounding. What is the bond's price? Select the correct answer. a. $813.52 b. $804.80 c. $806.98 d. $811.34 e. $809.16(Related to Checkpoint 9.3) (Bond valuation) Doisneau 22-year bonds have an annual coupon interest of 8 percent, make interest payments on a semiannual basis, and have a $1,000 par value. If the bonds are trading with a market's required yield to maturity of 16 percent, are these premium or discount bonds? Explain your answer. What is the price of the bonds? Question content area bottom Part 1 a. If the bonds are trading with a yield to maturity of 16%, then (Select the best choice below.) A. the bonds should be selling at a premium because the bond's coupon rate is greater than the yield to maturity of similar bonds. B. there is not enough information to judge the value of the bonds. C. the bonds should be selling at par because the bond's coupon rate is equal to the yield to maturity of similar bonds. D. the bonds should be selling at a discount because the bond's coupon rate is less than the yield to maturity of similar…Haswell Enterprises' bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 6%, based on semiannual compounding. What is the bond's price? Select the correct answer. a. $1,013.98 b. $1,018.60 c. $1,009.36 d. $1,016.29 e. $1,011.67
- A firm's bonds have a maturity of 8 years with a $1,000 face value, have an 8% semlannual coupon, are callable in 4 years at $1,048.54, and currently sell at a price of $1,094.91. 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? I. Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC. II. Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC. III. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM. IV. Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM. -Select-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(Related to Checkpoint 9.3) (Bond valuation) Doisneau 18-year bonds have an annual coupon interest of 14 percent, make interest payments on a semiannual basis, and have a $1,000 par value. If the bonds are trading with a market's required yield to maturity of 16 percent, are these premium or discount bonds? Explain your answer. What is the price of the bonds? Question content area bottom Part 1 a. If the bonds are trading with a yield to maturity of 16%, then (Select the best choice below.) A. the bonds should be selling at a discount because the bond's coupon rate is less than the yield to maturity of similar bonds. B. there is not enough information to judge the value of the bonds. C. the bonds should be selling at a premium because the bond's coupon rate is greater than the yield to maturity of similar bonds. D. the bonds should be selling at par because the bond's coupon rate is equal to the yield to maturity of similar…
- AAA company plans to issue bonds to expand operations. The bonds will have a par value of $1,000, a 10-year maturity, and a coupon interest rate of 9%, paid semiannually. Current market conditions are such that the bonds will be sold to net $937.79. What is the yield-to-maturity of these bonds?ACB Products has a bond issue outstanding with 8 years remaining to maturity, a coupon rate of 10 percent with interest paid annually, and a par value of $1,000. If the current market price of the bond issue is $814.45, what is the yield to maturity, rd. Question 6 Select one: a. 14% b. 16% c. 12% d. 15% e. 13%If you think you can sell an asset for $15,000 in eight (8) years and you think the appropriate discount rate is 5%, how much would you be willing to pay for the asset today? Question 7 Select one: a. $15,000 b. $10,153 c. $11,236 d. $15,771.00 e. None of the aboveA European company issues a bond with a par value of $1,000, 13 years to maturity, and a coupon rate of 6 percent paid annually. If the yield to maturity is 11 percent, what is the current price of the bond? Group of answer choices $640.46 $622.56 $658.44 $662.51 $636.66
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