General Electric 30-year bonds have a 7.5% annual coupon rate and a par value of $10,000. If their required rate of return is 6.25% per year, what should the price of their bonds be?
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A: Yield to maturity (YTM) is the rate which an investor earns when the bond is held till its maturity.
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A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…
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A: Solution:- Face value means the par value of which the bonds will be issued.
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A: Computation:
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Q: what will the price be 11 years from now
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A: Time Period = 11 years Par Value = 1000 Coupon = Coupon Rate× Par Value = 9% × 1000 = 90 YTM = 11%
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A: Time Period = % years Coupon Rate = 6% YTM = 7% Par Value = $1,000
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A: Par value (FV) = $1000 Coupon rate = 10% Semi annual coupon amount (C) = 1000*0.10/2 = $50 Years to…
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- 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?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?Goatboy Corporation bonds are currently priced at $1182.56 and have 25 years until maturity. The bonds have a 12% coupon rate and pay interest semiannually. The bonds also have a par value of $1000 and a yield to maturity of 10%. Assuming that the YTM stays the same, what would be the bond's capital gians yield if sold next year?
- Your company wants to raise $7.0 million by issuing 30-year zero-coupon bonds. If the yield to maturity on the bonds will be 4% (annual compounded APR), what total face value amount of bonds must you issue? The total face value amount of bonds that you must issue is $ (Round to the nearest cent.)Assume that the issue will have a coupon rate of 5% with a 15 year maturity. Assume this are semi-annual coupon bonds and each have a face value of $1,000 and the required rates of return for similar bonds in the market is 4.5%. What would be the issuing price of these bonds?Mertol Corporation has 7-year, 1000t par value bonds that make semiannual coupon payments. The current yield-to-maturity on the bonds 22,45% and the bond currently sells for 673,99t. a. What is the annual coupon rate on the bond? b. What is the current yield of the bond? What is the expected capital gains yield tor the next year? c. What is the effective YTM an investor will earn on Mertol bonds?
- Enterprise, Inc. bonds have a 9 percent annual coupon rate. The interest is paid semiannually and the bond mature in eight years. Their par value is $1,000. If the market’s required yield to maturity on a comparable-risk bond is 8 percent, what is the value of the bond? What is its value if the interest is paid annually? How to calculate this using mathematical calculation with formulas in finance?Taussig Corp.'s bonds currently sell for $1,220. They have a 6.35% annual coupon rate and a 20-year maturity, but they can be called in 5 years at $1,050. What rate of return should an investor expect to earn if he or she purchases these bonds?Dynamic Technologies has bonds on the market with 15 years to maturity, a yield-to-maturity of 9,2%, and a current price of R995, 09. The bonds make monthly payments. What is the coupon rate?
- A 100-year corporate bond has a coupon rate of 5% with semi - annual payments. If the current value of the bond in the marketplace is $400, then what is the Yield - to - Maturity (YTM)?Union pacific bonds have a 15 year maturity, a 7.25% semiannual coupon, and par value of 1000. The going interest rate is 8.20%, based on semiannual compounding. What is the bonds price?A company has decided to issue bonds with annual coupon payments. The bonds will have a par value of $1,000, 20 years to maturity, and a coupon rate of 9.6 percent paid annually. If the bond's yield to maturity is 8.3 percent, what is the price of the bond?