Setrakian Industries needs to raise $99.4 million to fund a new project. The company will sell bonds that have a coupon rate of 6.02 percent paid semiannually and that mature in 25 years. The bonds will be sold at an initial YTM of 6.82 percent and have a par value of $2,000. How many bonds must be sold to raise the necessary funds? O 99,400 bonds O 181,154 bonds O 54,939 bonds O 68,674 bonds

Setrakian Industries needs to raise $99.4 million to fund a new project. The company will sell bonds that have a coupon rate of 6.02 percent paid semiannually and that mature in 25 years. The bonds will be sold at an initial YTM of 6.82 percent and have a par value of $2,000. How many bonds must be sold to raise the necessary funds? O 99,400 bonds O 181,154 bonds O 54,939 bonds O 68,674 bonds

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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the answer is 9.58% can you provide me with the work to the answer?
Selling bonds. Lunar Vacations needs to raise $6,300,000 for its new project (a golf course on the moon). Astro Investment Bank will sell the bond for a commission of 2.6%. The market yield is currently 7.5% on twenty-year semiannual bonds. If Lunar wants to issue a 6.5% semiannual coupon bond, how many bonds will it need to sell to raise the $6,300,000? Assume that all bonds are issued at a par value of $1,000. ... How many bonds will Lunar need to sell to raise the $6,300,000? (Round to the nearest whole number.)
Selling bonds. Lunar Vacations needs to raise $5,700,000 for its new project (a golf course on the moon). Astro Investment Bank will sell the bond for a commission of 2.6%. The market yield is currently 7.2% on twenty-year semiannual bonds. If Lunar wants to issue a 6.1% semiannual coupon bond, how many bonds will it need to sell to raise the $5,700,000? Assume that all bonds are issued at a par value of $1,000. How many bonds will Lunar need to sell to raise the $5,700,000? (Round to the nearest whole number.)
Blake Company has a P30 million, 12 percent bond issue outstanding with 20 years remaining. The call premium is 7 percent of face value. A new 20-year bond issue for P30 million can be issued at a 10 percent interest rate. Flotation costs related to the new issue are P800,000. What is the net present value? CHOOSE THE CORRECT LETTER A. P5,108,160.00B. P2,900,000.00C. P2,208,160.00D. P1,208,160.00E. None of the above
An investor uses £150,000 to buy 6-year bonds with a face value of £100. The bonds pay coupons semi-annually at a rate of 8%. The bonds currently yield 10% p.a. effective in the market. Calculate the price of a single bond £ 92.14 Enter your answer as a decimal correct to 2 decimal places Calculate the net present value of the bond investment project at an interest rate of 6.5% p.a. £ 数字 Enter your answer correct to £100
The Chicago Steel Works, Inc., issues $250 million of 10 year step-up bonds to help it finance a plant renovation in Rockford, IL outside Chicago. The issued bonds have the following characteristics: Par = $1000 Current YTM: 4.28% Maturity = 10 years Assigned interest rates (step-ups): Years 1-5: 4.20% Years 6-10: 5.00% If this bond pays semi-annual coupon payments, what is this bond’s current price (NPV)? Show clearly all work, carrying all calculations out to four (4) decimal places. Highlight in bold your answer.
The Chicago Steel Works, Inc., issues $250 million of 10 year step-up bonds to help it finance a plant renovation in Rockford, IL outside Chicago. The issued bonds have the following characteristics: Par = $1000 Current YTM: 4.28% Maturity = 10 years Assigned interest rates (step-ups): Years 1-5: 4.20% Years 6-10: 5.00% If this bond pays semi-annual coupon payments, what is this bond’s current price (NPV)?
JJ. 182.
Suppose a state of Iowa zero coupon bond will pay $1000 at par ten years from now with no annual payments over the 10 year period. if the going interest rate on these 10 year bonds is 4.9% how much is the bond worth today a) 669.37 b) 464.84 c) 619.79 d) 650.78 e) 625.99
Silvia is thinking about investing money into a bond to diversify her investments. Company X issued 12 bonds at a face value of $43500 and a 17.5% nominal interest rate paid semiannually to raise capital for an upcoming factory expansion. The face value of the bond is $43500. The bond is a 10 year bond. As the bond was issued, the current nominal interest rate in the market is 7.0% compounded monthly. What is the maximum price Silvia should be pay for a single bond from company X?
Selling bonds. Lunar Vacations needs to raise $6,300,000 for its new project (a golf course on the moon). Astro Investment Bank will sell the bond for a commission of 2.7%. The market yield is currently 7.8% on twenty-year semiannual bonds. If Lunar wants to issue a 5.9% semiannual coupon bond, how many bonds will it need to sell to raise the $6,300,000? Assume that all bonds are issued at a par value of $1,000.
ReNew Corporation raises funds to build renewable energy systems by issuing 3-year bonds with a coupon rate of 6% and a face value of $1,300. Assume that the market interest rate for a 3-year bond issued by a firm like ReNew is currently the same as the coupon rate. The price of each of these bonds is Suppose that the market interest rate for bonds that are similar to the ReNew bond has increased to 8%. The price of the ReNew bond changes to

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