Please provide answer this following requirements on these financial accounting question Marks Technologies Inc. has issued a convertible bond with a facevalue of $1,200. The conversion price is $40 per share, while thestock is currently selling for $35 per share. The bond pays $70 peryear in interest and is selling in the market for $1,150. The bondmatures in 6 years, and market rates are 9% annually.a) What is the conversion ratio?b) What is the conversion value?

Step 1: Definition of Conversion Ratio and Conversion ValueConversion Ratio is the number of shares…

Answered: Marks Technologies Inc. has issued a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please give me answer general accounting
Rove Enterprises has bonds on the market making annual payments, with 10 years to maturity, and selling for $935. At this price, the bonds yield 6%. a) What is the value of the yearly coupon payment on Rove Enterprises' bonds? b) What must the coupon rate be on the bonds? c) Are the bonds of Rover Enterprises considered discount bonds or premium bonds and why?
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?
(Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 5 percent interest annually and have 12 years until maturity. You can purchase the bond for $1,125. 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 5 percent?
The Photo Film Company’s bonds have fouryears remaining to maturity. Interest is paid annually,the bonds have a $1,000 par value, and the couponinterest rate is 8.75%.(a) What is the yield to maturity at a current marketprice of $1,108?(b) Would you pay $935 for one of these bonds ifyou thought that the market rate of interest was9.5%?
Ray Co.’s bonds, maturing in 3 years, pay 8 percent interest on a $1,000 face value. Interest is paid once per year. If your required rate of return is 8 percent, what is the value of the bond? Now assume that the required rate of return increased to 9%. Would you recommend investors to buy the bond? What can you conclude about the relationship between bond prices and interest rates? Assume that the modified duration of this bond is 2.60 years. If the market yield changes by 2%, how much change will there be in the bond's price in %
McConnell Corporation has bonds on the market with 19 years to maturity, a YTM of 9.4 percent, a par value of $1,000, and a current price of $1,186.50. The bonds make semiannual payments. What must the coupon rate be on these bonds? (Note: first find the semi-annual payment. Then convert it into an annual payment and use this annual payment to find the coupon rate as an APR.) Multiple Choice O 11.52% O 9.71% O 19.45% O 23.08% 11.62%
(Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 8 percent interest annually and have 12 years until maturity. You can purchase the bond for $955. 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 10 percent? a. The yield to maturity on the Saleemi bonds is%. (Round to two decimal places.)
Bayside Inc. sells $5,000,000 of five-year, 10% bonds at the start of the year. The bonds pay interest yearly and have an effective yield of 9%. At what amount would the bonds sell for? What would be the bond carrying value at the end of Year 1? What amount of bond premium would be amortized for Year 2?
(Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 7 percent interest annually and have 9 years until maturity. You can purchase the bond for $885. 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 10 percent? a. The yield to maturity on the Saleemi bonds is %. (Round to two decimal places.)
Draiman Corporation has bonds on the market with 14.5 years to maturity, a YTM of 10.2 percent, a par value of $1,000, and a current price of $953. The bonds make semiannual payments. What must the coupon rate be on the bonds? (Hint: The coupon rate is always quoted as an annual rate! The coupon rate is calculated by adding up the total amount of payments in a year made by a bond, then dividing it by the face value of the bond.) Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Coupon rate %
A bond that matures in 6 years has a par value of $1,000, an annualcoupon payment of $80, and a market interest rate of 9%. What isits price? ($955.14)

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