Lepus has issued bonds of $100 nominal value with annual interest of 9% per year, based on the nominal value. The current market price of the bonds is $90. What is the cost of the bonds?
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Lepus has issued bonds of $100 nominal value with annual interest of 9% per year, based on the nominal value. The current market price of the bonds is $90. What is the cost of the bonds?
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- On July 1, Somers Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12 %. The bonds paid interest semi-annually. A. Assuming the bonds sold at 59.55, what was the selling price of the bonds? B. Explain why the cash received from selling this bond is different from the $200,000 face value of the bond. Investors can earn a higher rate ✓ in other similar bonds so the bond sells at a discountFitzgerald's 15-year bonds pay 6 percent interest annually on a $1,000 par value. If the bonds sell at $875, what is the bond's yield to maturity? What would be the yield to maturity if the bonds paid interest semiannually? Explain the difference.The saleemi corporation’s is $1,000 bonds pay 9 percent interest rate annually and have 9 years until maturity. You can purchase the bond for $935. A. What is the yield to maturity on this bond? B. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 9 percent ? A. The yield to maturity on the saleemi bonds is Round to two decimal places
- A bond has a face value of $1,000 with a maturity date 15 years from today. The bond pays semiannually at a rate of 6% nominal per year based on face value. The interest rate paid on similar corporate bonds has decreased to a current rate of 3%. Determine the market value of the bond.Fingen’s 16-year, $1,000 par value bonds pay 9 percent interest annually. The market price of the bonds is $860 and the market’s required yield to maturity on a comparable-risk bond is 12 percent A. Compute the Bond’s yield to maturity. B. Determine the value of the bond to you, given your required rate of return C. Should you purchase the bond? A. What is your yield to maturity on the Fingen bonds given the market price of the bonds? Round to two decimal placesThe saleemi corporation’s $1,000 bonds pay 6 percent interest annually and have 11 years until maturity. You can purchase the bond for $875. A. What is the yield to maturity on this bond? B. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 6 percent? A. The yield to maturity on the saleemi bonds is Round to two decimal places
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