Gabriele Enterprises has bonds on the market making annual payments, with 15 years to maturity, a par value of $1,000, and selling for $830. At this price, the bonds yield 10 percent. What must the coupon rate be on the bonds? Multiple Choice 10.00% 7.76% 7.86%
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- Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 10% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000, and a yield to maturity of 8.5%. What is the price of the bonds?Yield to Maturity and Yield to Call Arnot International’s bonds have a current market price of $1,200. The bonds have an 11% annual coupon payment, a $1,000 face value, and 10 years left until maturity. The bonds may be called in 5 years at 109% of face value (call price = $1,090). What is the yield to maturity? What is the yield to call if they are called in 5 years? Which yield might investors expect to earn on these bonds, and why? The bond’s indenture indicates that the call provision gives the firm the right to call them at the end of each year beginning in Year 5. In Year 5, they may be called at 109% of face value, but in each of the next 4 years the call percentage will decline by 1 percentage point. Thus, in Year 6 they may be called at 108% of face value, in Year 7 they may be called at 107% of face value, and so on. If the yield curve is horizontal and interest rates remain at their current level, when is the latest that investors might expect the firm to call the bonds?Current Yield for Annual Payments Heath Food Corporations bonds have 7 years remaining to maturity. The bonds have a face value of 1,000 and a yield to maturity of 8%. They pay interest annually and have a 9% coupon rate. What is their current yield?
- Gabriele Enterprises has bonds on the market making annual payments, with 5 years to maturity, a par value of $1,000, and selling for $870. At this price, the bonds yield 9.7 percent. What must the coupon rate be on the bonds? Multiple Choice 12.59% 9.70% 7.24% 6.40%Gabriele Enterprises has bonds on the market making annual payments, with 10 years to maturity, a par value of $1,000, and selling for $900. At this price, the bonds yield 8.8 percent. What must the coupon rate be on the bonds? A. 8.80% B. 14.51% C. 8.06% D. 7.26% E. 7.36%Kiss the Sky Enterprises has bonds on the market making annual payments, with 11 years to maturity, and selling for $960. At this price, the bonds yield 11.0 percent. What must the coupon rate be on the bonds?
- Gabriele Enterprises has bonds on the market making annual payments, with 20 years to maturity, a par value of $1,000, and selling for $850. At this price, the bonds yield 7 percent. What must the coupon rate be on the bonds? 7 % 4.68 % 5.58 % 11.17 % 6.57 %Slavin Movement has bonds on the market making annual payments, with 14 years to maturity, a par value of $1,000, and a current price of $1, 108.60. At this price, the bonds yield 7.5 percent. What is the coupon rate? Multiple Choice 8.93 % 8.46 % 9.01 % 9.32 % 8.78%Workman Software has 10.4 percent coupon bonds on the market with 15 years to maturity. The bonds make semiannual payments and currently sell for 93.6 percent of par. a. What is the current yield on the bonds? FJALE 11.11% O 0.21% O 11.67% O 12.17% b. The YTM? O 11.29% O 11.47% O 10.90% O 5.64% c. The effective annual yield? 11.61% O 11.26% O 12.19% O 0.11%
- A brand has bonds on the market with 19 years to maturity, a YTM of 11.0 percent, a par value of $1,000, and a current price of $1,206.50. The bonds make semiannual payments. What must the coupon rate be on these bonds? A. 13.71% B. 13.61% C. 27.27% D. 11.28% E. 22.60%A. Morin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 6.7% on these bonds. What is the bond's price? a. $1,215.14 b. $1,155.86 c. $1,047.19 d. $770.58 e. $987.92 B. Which of the following statements is CORRECT? a. IPO prices are generally established by the market, and buyers of the new stock must pay the price that prevails at the close of trading on the day the stock is offered to the public. b. It is possible that the price set in an IPO is so low that investors will want to buy more shares than the company wants to sell. In that case, the company will have to issue more shares than it wants to sell. c. The term "IPO" stands for Introductory Price Offered, and it is the price at which shares of a new company are offered to the public. d. In a "Dutch auction," investors who want to buy shares in an IPO submit bids…Baywa has an outstanding bond that has a coupon rate of 8.3%. What is the market price of this bond if it pays interest semiannually, has 15 years to maturity, and the current required rate of return is 9% on bonds of similar quality? a. $954 b. $1059 c. $1,000 d. $943
