General Accounting Ninja Co. issued 14-year bonds a year ago at a coupon rateof 6.9 percent. The bonds make semiannual payments. Ifthe YTM on these bonds is 5.2 percent, what is the currentbond price in dollars? Here is the information needed toperform the calculation:Settlement date: 1/1/2000Maturity date:1/1/2013Coupon rate:6.90%Coupons per year: 2Face value:$100Yield to maturity: 5.20%

Step 1: Define BondsA bond is a type of debt instrument that entities issue to raise capital for…

Answered: Ninja Co. issued 14-year bonds a year…

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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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%
Nikita Enterprises has bonds on the market making annual payments, with eleven years to maturity, a par value of $1,000, and selling for $970. At this price, the bonds yield 7 percent. What must the coupon rate be on the bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Coupon rate I%
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You issued debt in the form of bonds, with a face value of $1,000, and have 9 years until maturity. The bonds have an annual coupon rate of 7.8%, which are paid semiannually. a. The current price is $1,100. What is the pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g 12.34.) b. The tax rate is 22%. What is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34.)
Bonds issued by the Tyler Food chain have a par value of $1,000, are selling for $1,110, and have 20 years remaining to maturity. Annual interest payment is 14.5 percent ($145), paid semiannually. Compute the approximate yield to maturity. (Use a Financial calculator to arrive at the answers. Do the not round intermediate calculation. Round the final answer to 2 decimal places.) Approximate yield to maturity %
Please use this information to help me determine the correct Realized rate of return
Nikita Enterprises has bonds on the market making annual payments, with 17 years to maturity, a par value of $1,000, and selling for $956. At this price, the bonds yield 9.1 percent. What must the coupon rate be on the bonds? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Answer is complete but not entirely correct. Coupon rate 8.69 %
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