Eli Lilly bonds have an annual coupon rate of 5.55% and a par value of $1,000 and will mature in 17 years. If you require a 5 percent return, what price would you be willing to pay for a Eli Lilly bond?
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- A zera coupon bond with promised payment of $100 to be paid in 5 years has price equal to$80. What is the YTM?What price would you pay for a 10-year, AA bond with a Face Value of $1,000 and a coupon rate of 7.10%?You are considering the purchase of a perpetual bond that pays you $174 per year for the foreseeable future. If you require a 5.85% rate of return on this bond investment, what is a fair price for the bond that you would be willing to pay today? To nearest $0.01
- Consider an annual coupon bond with a face value of $100, 10 years to maturity, and a price of $95. The coupon rate on the bond is 3%. If you can reinvest coupons at a rate of 1% per annum, then how much money do you have if you hold the bond to maturity?Phil Manufacturing, Inc. bonds have a face value of $1,000, a coupon rate of 6.5 percent, semiannual interest payments, and mature in 19 years. What is the current price of these bonds if the yield to maturity is 6.65 percent? Can the calculator and excel solution be provided?Bond X is noncallable and has 20 years to maturity, a 9% annual coupon, and a $1000 par value. Your required return on bond X is 10% and if you buy it you plan to hold it for 5 years. You (and the market) have expectations that in 5 years, the yield to maturity on a 15-year bond with similar risk will be 8.5%. How much should you be willing to pay for bond X today? (Hint: You will need to know how much the bond will be worth at the end of 5 years.)
- What price would you pay for a 5-year, BB bond with a Face Value of $1,000 and a coupon rate of 9.75%?Your company wants to raise $8.0 million by issuing 30-year zero-coupon bonds. If the yield to maturity on the bonds will be 5% (annual compounded APR), what total face value amount of bonds must you issue?A P5000 par value bond bearing a coupon rate of 8 percent will mature after 7 years. What is the value of the bond, if the discount rate is 12 percent? Please provide solutions to your answers.
- Consider a $1,000 par value bond with a 7% annual coupon. There are 20 years remaining until maturity. You have expectations that in 5 years the YTM on a 15-year bond with similar risk will be 7.5%. You plan to purchase the bond now and hold it for 5 years. Your required return on this bond is 7.17%. How much would you be willing to pay for this bond today? (hint: find the expected bond value in 5 years) A) $962 B) $970 C) $924 D) $875 E) $859You are considering investing in a zero coupon bond that will pay you its face value of$1000 in ten years. If the bond is currently selling for $485.20, whag is the IRR for investing in this bond?Bond X is noncallable and has 20 years to maturity, a 8% annual coupon, and a $1,000 par value. Your required return on Bond X is 10%; if you buy it, you plan to hold it for 5 years. You (and the market) have expectations that in 5 years, the yield to maturity on a 15-year bond with similar risk will be 12%. How much should you be willing to pay for Bond X today? (Hint: You will need to know how much the bond will be worth at the end of 5 years.) Do not round intermediate calculations. Round your answer to the nearest cent. $ 1855.2