IntroA GM and a Ford bond both have 4 years to maturity, a $1,000 par value, a BB rating and pay interestsemiannually. GM has a coupon rate of 7%, while Ford has a coupon rate of 5.1%.Part 1The GM bond trades at 96.63 (percent of par). What is the yield to maturity (YTM)?16.00%Try againTry againSee solution (-2 pts.)Attempt 5/10 for 10 pts.

The bond pricing formula is:P = C/(1+r)^1 + C/(1+r)^2 + C/(1+r)^3 + ... + (C+F)/(1+r)^nWhere:P is…

Answered: Intro A GM and a Ford bond both have 4…

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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Don't use ai answer,I will 5 upvotes You are given the following information about a bond:this bond has 10 years until maturity, has a $1,000 parvalue; pays an 9% semiannual coupon, is callable in 5years, and currently sells at a price of $1,075. If called,the bond pays par value and one additional couponpayment. What is the yield to call on this bond?1) 7.75% 2) 6.85% 3)8.25% 4)8.56% 5)7.91%
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One year ago, your company purchased a machine used in manufacturing for $95,000. You have learned that a new machine is available that offers many advantages and you can purchase it for $150,000 today. It will be depreciated on a straight-line basis over 10 years and has no salvage value. You expect that the new machine will produce a gross margin (revenues minus operating expenses other than depreciation) of $40,000 per year for the next 10 years. The current machine is expected to produce a gross margin of $25,000 per year. The current machine is being depreciated on a straight-line basis over a useful life of 11 years, and has no salvage value, so depreciation expense for the current machine is $8,636 per year. The market value today of the current machine is $45,000. Your company's tax rate is 35%, and the opportunity cost of capital for this type of equipment is 11%. Should your company replace its year-old machine? The NPV of replacing the year-old machine is $ (Round to the…
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# 1 Assume a par value of $1,000. Caspian Sea plans to issue a 5.00 year, annual pay bond that has a coupon rate of 3.00%. If the yield to maturity for the bond is 3.0%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity %23
Please do not give solution in image format ?
# 1 The market price of a semi-annual pay bond is $983.24. It has 15.00 years to maturity and a coupon rate of 5.00%. Par value is $1,000. What is the yield to maturity? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) unanswered not_submitted Attempts Remaining: Infinity #2 Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay bond that has a coupon rate of 8.11%. If the yield to maturity for the bond is 7.79%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity
#2 Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay bond that has a coupon rate of 8.11%. If the yield to maturity for the bond is 7.79%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity %23
Q21 A bond coupon rate of 9%. It matures after 8 years. It has a current market price of OMR 96. Assume that coupons are semi-annual payments. What is annual coupon payment amount of the Bond? a. OMR 8.64 b. OMR 4.32 c. OMR 4.5 d. OMR 9

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