Potter & Lopez Inc. just sold a bond with 50 warrants attached. The bonds have a 20-year maturity and an annual coupon of 12%, and they were issued at their $1,000 par value. The current yield on similar straight bonds is 15%. What is the implied value of each warrant? Ο $4.35 O $3.76 O $4.56 O $4.14 O $3.94
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- Potter & Lopez Inc. just sold a bond with 50 warrants attached. The bonds have a 20-year maturity and an annual coupon of 12%, and they were issued at their $1,000 par value. The current yield on similar straight bonds is 15%. What is the implied value of each warrant? a. $4.35 b. $4.56 c. $4.14 d. $3.94 e. $3.76 Please explain why PMT is -120.BaghibenBriar Corp is issuing a 10-year bond with a face value of $1.000 at a coupon rate of 6 percent. The interest rate for similar bonds is currently 12 percent. Assuming annual payments, what is the present value of the bond? O $1.000 $872 O $897 O $661
- J&J Manufacturing just issued a bond with a OMR1,000 face value and a coupon rate of 8%. If the bond has a life of 20 years, pays annual coupons, and the yield to maturity is 7.5%, what is the total present value of the bond's coupon payments? Select one: O a. OMR 815.56 O b. OMR 1,000.00 O c. OMR 341.15 O d.OMR 1,050.97 O e. OMR 235.41Matt's Mats, Inc. recently issued a consul bond with a 6% coupon rate and a face value of $1,000. Today the bonds were being traded based on a required return of 7.5%. At what price were the bonds trading to provide that return? A. $0.00 B. $1,000 C. $500.00 O D. $7,00ABC Corporation issued a bond that pays coupons semiannually. It has a 15-year maturity, and the coupon rate is 8 percent. The face value is $1,000. The bond is selling to yield 8 percent. What is the current price of the bond? a. $1,015 b. $980 c. $1,000 d. $992
- One year ago, an annual coupon bond was issued by Company X with maturity period of 10 years at coupon rate of 8%. Face value of the bond is $1,000. The interest rate of similar kind of bonds in the market is 9.00%. What is the current price of the bond? a) $935.82 b) $1,000 c) $940.05 d) $949.67Walmart's bonds mature in 7 years, have a face value of $1,000, and make an annual coupon interest payment of $60. The market requires an interest rate of 8% on these bonds. What is the current market price of the bond? OA. $940.29 OB. $885.07 O C. $895.87 O D. $907.54Given below is information about three RM $5000 par value bonds, each of which pays coupon semiannually. The required rate of return on each bond is 12%. Calculate the value of the bonds and determine whether the bond is selling at discount, premium or par value..... Bonde 14 2 34 Coupon Rate (%)< 10€ 124 14€ Maturity (years) 5€ 10€ 15€ Using the above table, if the company decided to pay coupon annually (12%), calculate the value of the bonds and determine whether the bond is selling at discount, premium or par value. ..... Explain the of Bons available in the market for the Companies to raise fund....... Is there any difference in the value of semiannually and annually....
- Schallheim Corporation’s outstanding bonds have a $1,000 par value, a 7 percent semiannual coupon, 16 years to maturity, and an 8.5 percent yield to maturity (YTM). What is the bond’s price? a. $870.11 b. $871.37 c. $1,000.00 d. $914.20 e. $455.00Bacon Signs Inc. has $500,000 outstanding of $1000 par value bonds with a coupon interest rate of 7.5% and 2 0 years to maturity. If Bacon Signs makes semiannual payments, how large is each payment per bond? a. $40.00 b. $75.00 c. $37.50 d. $40.50A. Morin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 6.7% on these bonds. What is the bond's price? a. $1,215.14 b. $1,155.86 c. $1,047.19 d. $770.58 e. $987.92 B. Which of the following statements is CORRECT? a. IPO prices are generally established by the market, and buyers of the new stock must pay the price that prevails at the close of trading on the day the stock is offered to the public. b. It is possible that the price set in an IPO is so low that investors will want to buy more shares than the company wants to sell. In that case, the company will have to issue more shares than it wants to sell. c. The term "IPO" stands for Introductory Price Offered, and it is the price at which shares of a new company are offered to the public. d. In a "Dutch auction," investors who want to buy shares in an IPO submit bids…