Suppose the following bond quote for IOU Corporation appears in thefinancial page of today's newspaper. Assume the bond has a face value of1,000 and the current date is April 15, 2019. [[Company...., EST Vol], [(Ticker), Coupon,Maturity, Last Price, Last Yield, (000s)], [IOU, 7.8, Apr15,, 104.661, ??, 1, 845], [(IOU),, 2032,,,]] a. What is the yield tomaturity of the bond? (Do not round intermediate calculations and enteryour answer as a percent rounded to 2 decimal places, e.g., 32.16.) b.What is the current yield? (Do not round intermediate calculations andenter your answer as a percent rounded to 2 decimal places, e.g32.16.) [[,], [a., YTM, %I

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Answered: Suppose the following bond quote for…

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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On January 1, 2022, a company issued $400,900 of 10-year, 12% coupon rate bonds. The interest is peyable semi-annually on June 30 and December 31. The issue price was $450.861 based on a 10% market interest rate. The effective interest method of amortization is used What is the book value of the bond liability as of June 30, 2022 (to the nearest dollar)? Multiple Choice O O O O $400.900 $452,372 $449350 $402,411
5 On January 1, Ruiz Company issued bonds as follows: Face Value: Number of Years: Stated Interest Rate: Interest payments per year 7 B 9 0 1 2 AWN IC $500,000 a) Required: 1) Calculate the bond selling price given the two market interest rates below. Use formulas that reference data from this worksheet and from the appropriate future or present value tables (found by clicking the tabs at the botto this worksheet). Note: Rounding is not required. 15 7% 2 Annual Market Rate Semiannual Interest Payment: PV of Face Value: +PV of Interest Payments: Bond Selling Price: Annual Market Rate Semiannual Interest Payment: PV of Face Value: +PV of Interest Payments: = Bond Selling Price: 9% $17,500 133,500.01 285,055.55 418,555.56 6.00% $17,500 205,993.38 5343,007.72 $549,001.10 +
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es You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons. Estimated $ Volume Company (Ticker)" Xenon, Incorporated (XIC) Coupon 6.30 Maturity January 15, 2043 Kenny Corporation (KCC) Williams Company (WICO) 7.21 ?? January 15, 2037 January 15, 2039 Last Price Last Yield 94.291 ?? (000s) ?? 57,371 6.20 48,950 94.825 7.02 43,811 What is the yield to maturity for the bond issued by Xenon, Incorporated? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Yield to maturity %
You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons. Company (Ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) Coupon 6.500 7.230 ?? a. Price b. Current yield Maturity January 15, 2045 January 15, 2039 January 15, 2041 % Last Price Last Yield 94.315 ?? 94.845 ?? 6.24 7.06 a. What price would you expect to pay for the Kenny Corporation bond? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the bond's current yield? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Estimated $ Volume (000s) 57,373 48,952 43,813
Information about three securities appears next. Stock 1 Stock 2 Bond 1 Beginning-of-Year Price Stock 1 Stock 2 Bond 1 $ 44.20 $ 2.95 $ 1,190 End-of-Year Price $ 48.45 $3.18 $ 1,218 a. Assuming interest and dividends are paid annually, calculate the annual holding period return on each security. Note: Round your answers to 1 decimal place. X Answer is not complete. Annual Holding Period Return 16.9 % 7.8 % % Interest/Dividend Paid $ 3.20 $.00 $ 58.00
Presented below are selected transactions on the books of Swifty Corporation. June 1, 2020 Dec 31 Jan. 1, 2021 August 1 Dec. 31 Bonds payable with a par value of $708,000, which are dated January 1, 2017, are sold at 98 plus accrued interest. They are coupon bonds, bear interest at 8% (payable annually at January 1), and mature January 1, 2030. (Use interest expense account for accrued interest.) Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of discount. (Use straight-line amortization) interest on the bonds is paid. Bonds with par value of $283,200 are called at 102 plus accrued interest, and retired. (Bond discount is to be amortized only at the end of each year) Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of discount amortized. Prepare journal entries for the transactions above. (Round intermediate calculations to 6 decimal places, eg. 1.251247 and final answers to O…
Calculate the accrued interest (in $) and the total purchase price (in $) of the bond purchase. (Round your answers to the nearest cent.) Company CouponRate MarketPrice TimeSince LastInterest AccruedInterest Commissionper Bond BondsPurchased TotalPrice Company 2 9.4 79.75 23 days $ $9.95 15 $
Suppose that the current carrying value of Old Navy's $1872000 face value bonds is $1865200. If the bonds are retired at 101, what would be the amount Old Navy would pay its bondholders? $1890720 $1874080 $1865200 $1872000
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