Heymann Company bonds have 5 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 10%. What is the yield to maturity at a current market price of $863?
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- 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?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?Harrimon Industries bonds have 4 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 9%. What is the YTM at a current market price of $1,104?
- Bonds issued by the Etling Corporation have a price of $790.55 and a coupon rate of 8 percent which is paid annually. The bonds will mature in 14 years and the face value is $1,000. What is the yield to maturity?Suppose a firm is issuing bonds. Each bond has a face amount of $1,000, a stated rate of 8%, and a 10-year term. Coupon (interest) payments are made annually. When the bonds are issued, the market rate for similar bonds is 8%. After a year, the bond is selling for $1,015. What is the yield to maturity?Wilson Wonders’s bonds have 10 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10%. The bonds sell at a price of $900. What is their yield to maturity?
- Harrimon Industries bonds have 5 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 8%. What is the yield to maturity at a current market price of $798? Round your answer to two decimal places. % $1,074? Round your answer to two decimal places.Carries Clothes, Inc. has a five -year bond outstanding that pays $60 annually. The face value of each bond is $1,000, and the bond sells for $890. Use semi- annual interest payments if it applies. What is the bond’s coupon rate? What is the current yield? What is the yield to maturity?Thatcher Corporation’s bonds will mature in 15 years. The bonds have a face value of $1,000 and a 6 percent coupon rate, paid semiannually. The price of the bonds is $1,100. The bonds are callable in 8 years at a call premium of 10 percent. What is the yield to maturity? What is the yield to call?
- 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?Wilsons company bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a 1000 par value, and the coupon interest rate is 10%. The bonds sell at a price of 850. What is the yield to maturity?Thatcher Corporation’s bonds will mature in 10 years. The bonds have a face value of $1,000 and an 8 percent coupon rate, paid semiannually. The price of the bond is $1,100. What is the firm’s cost (percentage rate) of borrowing money under these market conditions?
