GivenToday´s Datefeb-05 Ford Motor Co. Coupon:6.38% Matuirity:02/01/2029 Term to Matuirity24yearsRating:Baa1/BBB- Price: $ 927.87 General Motors Corp. Coupon:8.38% Matuirity:7/15/2033 Term to Matuirity28.5yearsRating:Baa2/BBB- Price: $ 1,061.25 Solution Ford Motor Co.General MotorsSemi-annual YTM Annualized YTM

Here,FM Co.GM Corp.Face Value $ 1,000.00 $ 1,000.00Coupon Rate6.38%8.38%Time to Maturity in…

Answered: Given Today´s Date feb-05 Ford…

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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me * CengageNowv2 | Online teach x keAssignment/takeAssignmentMain.do?invoker-D&takeAssignmentSessionLocator=&inprogress%-false Updar Discount Amortization On the first day of the fiscal year, a company issues a $1,700,000, 9%, 10-year bond that pays semiannual interest of $76,500 ($1,700,000 x 9% x ½), receiving cash of $1,407,515. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense 1,407,515 Discount on Bonds Payable Cash
Remaining Time: 12 minutes, 27 seconds. - Question Completion Status: A Moving to another question will save this response. « Question 5 1 points Save Answe Fatema Company purchased $40,000 of 10% bonds of Silver Co. on January 1, 2016, paying $37,610. The bonds mature January 1, 2026; interest is payable each July 1 and January 1. The discount of $2,390 provides an effective yield of 11%. Fatema Company uses the effective-interest method and holds these bonds for collection. For the year ended December 31, 2016, Fatema Company should report interest revenue from the Silver Co. bonds of. O a. $4,239.2 O b. $4,136.8. Oc. $4,140.9. O d. $4,000. A Moving to another question will save this response. « 9:26 A 20°C Sunny O - d)) ENG
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Flotation costs and the cost of debt In March of 2020 PepsiCo, Inc. (PEP) sold $750 million worth ofb 20-year 3.75% coupon bonds that pay semi-annual interest. At the time the bonds were issued, the market paid $991.72 per bond and the flotation cost was $17.59 per bond. Pepsi's corporate tax rate is 21%. a. Ignoring flotation costs, what is Pepsi's before-tax and after-tax costs of debt? b. Considering flotation costs, what is Pepsi's before-tax and after-tax costs of debt?
TOPICS: INVESTMENTS/DERIVATIVES N sells approximately 100 000 bushels of corn eachmonth. On January 1, 2019, N purchased an option to sell100 000 bushels of corn on January 1, 2020, at a price ofP 100 per bushel. The market price on January 1, 2019 isP 100 per bushel. N had to pay P 200 000 to purchase thiscorn put option, which it designated as a hedge againstprice decrease for its January 2020 sale of corn. If the price of thee corn on January 1 2020 is P105 per bushel, N shall recognize a gain or losson put option in 2020 at? If the price f the corn on January 1, 2020 is P 90per bushel, N shall recognize gain or loss on putoption in 2020 at? How would you solve these questions? Thanks!
$100,000 State of Massachsetts bond, 3.5% coupon (paid annually), due 5/11/2032 is quoted at a yield of 4%. What is the owner's annual income?
INVESTMENT AT AMORTIZED COST CASE IV: On January 1, 2026, ABC purchased serial bonds with face amount of P5M and stated interest at 12%. The stated interest is payable annually on December 31. The bonds are acquired to have an effective yield at 10%. The bonds mature at annual installment of P1,250,000 every December 31. What is the market price of the serial bonds on the acquisition date?
debt information -$1,000,000,000 in outstanding debt (face value) -current coupon rate = 9% (semiannual coupons) -current quote = 110 -15 years maturity -tax rate 40% a) what is the cost of debt? b) what is the after tax cost of debt?
On the 18th July 2020, I purchased a 2.45%, 21st August 2030 CGB at a yield of 1.346%. then on the 16th of September 2021 on sold it when the yield was 1.228%. Assuming the reinvestment rate was 1.25% pa simple interest, what was the holding period yield for this investment? Express your answer as a percentage to 3 decimal places. eg not 0.0625 but 6.253 W

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Given
Today´s Date	feb-05

Ford Motor Co.
Coupon:	6.38%
Matuirity:	02/01/2029
Term to Matuirity	24	years
Rating:	Baa1/BBB-
Price:	$ 927.87

General Motors Corp.
Coupon:	8.38%
Matuirity:	7/15/2033
Term to Matuirity	28.5	years
Rating:	Baa2/BBB-
Price:	$ 1,061.25

Solution
	Ford Motor Co.	General Motors
Semi-annual YTM
Annualized YTM