Global Exporters wants to raise $31.3 million to expand its business. To accomplish this, it plans to sell 15-year, $1,000 face value, zero coupon bonds. The bonds will be priced to yield 6.5 percent. What is the minimum number of bonds it must sell to raise the money it needs? Assume semiannual compounding. O 69,800 86,029 81,705 O 74,907 O 73,255

Global Exporters wants to raise $31.3 million to expand its business. To accomplish this, it plans to sell 15-year, $1,000 face value, zero coupon bonds. The bonds will be priced to yield 6.5 percent. What is the minimum number of bonds it must sell to raise the money it needs? Assume semiannual compounding. O 69,800 86,029 81,705 O 74,907 O 73,255

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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An Australian commercial bank is looking to issue $1 billion of bonds into the wholesale funding markets to fund its ever-increasing demand for credit growth which is fuelling yet another house price boom. The bonds will be structured with a fixed-interest coupon priced on current government bond yields and equal to current interest rates of 3.00 per cent per annum, coupons paid half-yearly and a tenor of seven years. The bonds are denominated and priced into $1,000 allotments. a. What amount would the bank have raised once the bond is priced and launched into the capital markets? b. After one year, yields on identical types of securities are now 4.00 per cent per annum. The existing bond now has exactly six years to maturity. What is the value, or price, of the existing bond in the secondary market?
Chamberlain Co. wants to issue new 15-year bonds for some much-needed expansion projects. The company currently has 9 percent coupon bonds on the market that sell for $1,070, make semiannual payments, and mature in 15 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Coupon rate %
5. HSD Corporation needs to raise funds to finance a plant expansion and it has decided to issue 25-year zero coupon bonds to raise the money. The required return on the bonds will be 8%. Assume FV is $1000. a. What will these bonds sell for at issuance? b. How many of these bonds would the company need to issue to raise 15M? C. If the bond includes a 10% coupon, what will the bonds sell for at issuance?
For the next 5 questions, assume that the economy starts in equilibrium:-the output is 1 million-the equilibrium price of a one-year, $100 bond is $96-the money supply is 1 trillion-the price level is 125 1.What is the interest rate in this economy? a 4.67% b 4.00% c 5.03% d 4.17% 2. The Federal Reserve decides to sell bonds and there is a change in the equilibrium bond price. What bond price is most likely? a not enough information b 97 c 96 d 95 3. After the bond price change in the previous question, the interest rate will _, causing the aggregate expenditure curve to _ because _ will __. a decrease , increase , autonomous consumption and planned investment spending , increase b increase , decrease , autonomous consumption and planned investment spending , increase c increase , decrease , autonomous consumption and planned investment spending , decrease d decrease , increase, government…
Hello, I need help with this question: Six years ago, James Corporation sold a $100 million bond issue to expand its facilities. Each debenture has a $1,000 par value, an original maturity of 20 years (there are now 14 years left to maturity), and an annual coupon rate of 11.5% with semiannual payments. If you require a 14% return, what price would you pay today for a James bond? a) $826 c) $848 e) $890 b) $833 d) $868 The answer is C. But I can't seem to get in the calculator.
the answer is 9.58% can you provide me with the work to the answer?
Uliana Company wants to issue new 16-year bonds for some much-needed expansion projects. The company currently has 7 percent coupon bonds on the market that sell for $1,035, make semiannual payments, and mature in 16 years. Both bonds have a par value of $1,000. What coupon rate should the company set on its new bonds if it wants them to sell at par? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Coupon rate %
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Your company wants to raise $8.5 million by issuing 10-year zero-coupon bonds. If the yield to maturity on the bonds will be 5% (annual compounded KAPR), what total face value amount of bonds must you issue? ve this 6 F V The total face value amount of bonds that you must issue is $. (Round to the nearest cent.) View an example Get more help. G B.B % 5 T G 1 B A 6 Y H ☐ MacBook Pro N & 7 U J * 8 M Ⓒ K ( 9 H 15 X 1 option Clear all + = Check answer delete retur
One of the England’s largest corporations just expanded operations into the United States. At present, the firm has a 30 year, $10,000 par value bond outstanding, with a coupon rate of 4.3% percent paid semiannually and 15 years to maturity. The yield to maturity on this bond is 5.2 percent. What is the current value of the bond? Once you have calculated the Present Value or the current price of the bond, what would be the Current Yield on this bond? Is it selling at a discount, par, or premium?
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