Midland Oil has $1,000 par value bonds outstanding at 16 percent interest. The bonds will mature in 25 years. Use Appendix B andAppendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.Compute the current price of the bonds if the present yield to maturity is:Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments areannual.a. 15 percentBond PriceSb. 14 percentc. 16 percent

The value of a bond is obtained by adding the present value of the bond's cash flows such as coupon…

Midland Oil has $1,000 par value bo Appendix D for an approximate ans Compute the current price of the bo Note: Do not round intermediate c annual. a. 15 percent b. 14 percent c. 16 percent Bond Price

Midland Oil has $1,000 par value bo Appendix D for an approximate ans Compute the current price of the bo Note: Do not round intermediate c annual. a. 15 percent b. 14 percent c. 16 percent Bond Price

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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Monster Inc. issues $100,000 face value, 6% semiannual coupon bonds maturing in 10 years. The market initially prices these bonds to yield 8% compounded semiannually. What is the issue price of these bonds? Select one: a. $81,902 b. $78,066 c. $87,506 d. $108,784 e. $86,410
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Consider a 16-year, $1,000 par value, 4% semiannual-pay bond that is currently trading at a flat price of $870.07. The current yield (CY) is closest to A. 2.30%. B. 3.68%. C. 4.60%. D. 5.43%.
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Consider a 9-year, $1,000 par value, 12% annual-pay bond that is currently trading at a flat price of $888. The capital gains yield (CGY) is closest to A. 0.7745%. B. 0.4672%. C. 0.3505%. D. 0.0185%.
ASsignmentiMain.do?invoker=& takeAssignmentSessionLocator%3D&inprogress%-false rk eBook Calculator Print Item Compute Bond Proceeds, Amortizing Premium by Interest Method, and Interest Expense Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware Co. issued $90,000,000 of five-year, 12% bonds at a market (effective) interest rate of 10%, with interest payable semiannually. Compute the following: a. The amount of cash proceeds from the sale of the bonds. Use the tables of present values in Exhibit 8 and Exhibit 10. Round to the nearest dollar. b. The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round to the nearest dollar. C. The amount of premium to be amortized for the second semiannual interest payment period, using the interest method. Round to the nearest dollar. d. The amount of the bond interest expense for the first year. Round to the nearest dollar. SHEET.A... SHEET KSHEET.A...…
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pt 1 Exodus Limousine Company has $1,000 par value bonds outstanding at 8 percent interest. The bonds will mature in 40 years with annual payments. Use Appendix B and Appendix D. Compute the current price of the bonds if the current yield to maturity is: (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answers to 2 decimal places.) a. 3 percent b. 13 percent pt 2: o Price of the bond $ 5 Show Transcribed Text Ĉ Exodus Limousine Company has $1,000 par value bonds outstanding at 10 percent interest. The bonds will mature in 30 years with annual payments. If the current yield to maturity is 15 percent, what percent of the total bond value does the repayment of principal represent? Use Appendix B and Appendix D. (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answer to 2 decimal places.) Principal repayment
Determining Selling Prices of Bonds Under Different Interest Assumptions Olay Inc. issues $50,000, 8%, 10-year bonds payable on January 1, 2020. Calculate the selling price of the bonds under the following separate assumptions. • Round your answer to the nearest whole number. • Do not use negative signs with your answers. a. The bonds pay cash interest annually ($4.000) and the market rate of interest on similar bonds is 10%. b. The bonds pay cash interest annually (54.000) and the market rate of interest on similar bonds is 8%. c. The bonds pay cash interest annually ($4.000) and the market rate of interest on similar bonds is 6%. d. The bonds pay cash interest semiannually ($2.000) and the market rate of interest on similar bonds is 10%. S e. The bonds pay cash interest semiannually ($2.000) and the market rate of interest on similar bonds is 8%, s f. The bonds pay cash interest semiannually ($2.000) and the market rate of interest on similar bonds is 6%. %24 47,738 x 50.000 v 52,600…

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