Uliana Company wants to issue new 16-year bonds for some much-needed expansion projects. The company currently has 7 percentcoupon bonds on the market that sell for $1,035, make semiannual payments, and mature in 16 years. Both bonds have a par value of$1,000. What coupon rate should the company set on its new bonds if it wants them to sell at par?Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.Coupon rate%

Uliana Company wants to issue new 16-year bonds for some much-needed expansion projects. The company currently h coupon bonds on the market that sell for $1,035, make semiannual payments, and mature in 16 years. Both bonds have a $1,000. What coupon rate should the company set on its new bonds if it wants them to sell at par? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., Coupon rate %

Uliana Company wants to issue new 16-year bonds for some much-needed expansion projects. The company currently h coupon bonds on the market that sell for $1,035, make semiannual payments, and mature in 16 years. Both bonds have a $1,000. What coupon rate should the company set on its new bonds if it wants them to sell at par? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., Coupon rate %

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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Marshall Company is issuing eight-year bonds with a coupon rate of 6.19 percent and semiannual coupon payments. If the current market rate for similar bonds is 9.23 percent. If the company wants to raise $1.25 million, how many bonds does the firm have to sell? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and number of bonds to 0 decimal places, e.g. 5,275.) Number of bonds ______________bonds
(Related to Checkpoint 9.2) (Yield to maturity) Abner Corporation's bonds mature in 19 years and pay 13 percent interest annually. If you purchase the bonds for $1,225, what is your yield to maturity? Question content area bottom Part 1 Your yield to maturity on the Abner bonds is enter your response here%. (Round to two decimal places.)
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Uliana Company wants to issue new 19-year bonds for some much-needed expansion projects. The company currently has 10.3 percent coupon bonds on the market that sell for $1,143, make semiannual payments, have a par value of $1,000, and mature in 19 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? 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.
Bobcaygeon Industries has decided to borrow money by issuing perpetual bonds with a coupon rate of 6.3 percent, payable annually. The one-year interest rate is 6.3 percent. Next year, there is a 36 percent probability that interest rates will increase to 8.3 percent, and there is a 64 percent probability that they will fall to 4.3 percent. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) a. What will the market value of these bonds be if they are non-callable? (Omit $ sign in your response.) Price of the bond $ b. If the company instead decides to make the bonds callable in one year, what coupon will be demanded by the bondholders for the bonds to sell at par? Assume that the bonds will be called if interest rates fall and that the call premium is equal to the annual coupon. Coupon rate c. What will be the value of the call provision to the company? (Omit $ sign in your response.) Call provision value %
Uliana Company wants to issue new 16-year bonds for some much-needed expansion projects. The company currently has 8 percent coupon bonds on the market that sell for $1,065, make semiannual payments, and mature in 16 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Please solve with financial calculator or HP 10b and show inputs. Please don't use excel.
need help on both questions , thank you
Jiminy's Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 4 percent 3 years ago. The bond currently sells for 108 percent of its face value. The company's tax rate is 22 percent. a. 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., 32.16.) b. 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., 32.16.) a. Pretax cost of debt b. Aftertax cost of debt c. Which is more relevant, the pretax or the aftertax cost of debt? Aftertax cost of debt % % Pretax cost of debt
An insurance company is analyzing the following three bonds, each with five years to maturity, annual interest payments, and is using duration as its measure of interest rate risk. What is the duration of each of the three bonds? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) a. $10,000 par value, coupon rate=9.7%, r 0.17 b. $10,000 par value, coupon rate 11.7%, r= 0.17 c. $10,000 par value, coupon rate = 13.7%, p=0.17 Duration of the bond years
shobha
Laura Hall is planning to buy 10-year zero coupon bonds issued by the U.S. Treasury. If these bonds have a face value of $1,000 and are currently selling at $409.39, what is the expected return on them? Assume that interest compounds semiannually on similar coupon paying bonds. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25%.)
Uliana Company wants to issue new 15-year bonds for some much-needed expansion projects. The company currently has 7 percent coupon bonds on the market that sell for $1,060, have a par value of $1,000, make semiannual payments, and mature in 15 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Coupon rate %

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