Weismann Company issued 6-year bonds a year ago at a coupon rate of 7 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 7 percent, what is the current bond price? Multiple Choice O O $835.17 $1,005.00 $1,295.08 $1,010.00 $1,000.00
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- Cost of debt Kenny Enterprises has just issued a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 8.8% with semiannual payments. What is the cost of debt for Kenny Enterprises if the bond sells at the following prices? What do you notice about the price and the cost of debt? a $914.64 b. $1,000.00 c. $1,024.73 d. $1,149.55vidend 15. Samsung bond has been just issued under the conditions: 10 years to maturity, coupon rate 7 %, YTM 6%, semi - annual coupon payments. If it is certain that the interest rate rises to 10% next y ear (one year from today), what will be the correct bond price change? Assume the face value of the bond to be $1,000. $165 capital gain $250 capital gain $250 capital loss $285 capital loss vidend g he 15. Samsung bond has been just issued under th e conditions: 10 years to maturity, coupon rate 7 %, YTM 6%, semi-annual coupon payments. If it i s certain that the interest rate rises to 10% next y ear (one year from today), what will be the correct bond price change? Assume the face value of the bond to be $1,000. 1. $165 capital gain 2. $250 capital gain 3. $250 capital loss 4. $285 capital lossY8 Here are data on $1,000 par value bonds issued by Caterpillar and Intel. Assume you are thinking about buying these bonds. CaterpillarIntelCoupon5%4%Years to Maturity810Required Return4%5% Answer the following questions: a) Assuming interest is paid annually, calculate the values of each of the bonds b) How would these values change if the coupon was paid semiannually ( c) Assume that the bonds with the coupon that is paid annually (point a) are selling for the following amounts: · Caterpillar $1,050 · Intel $980 What are the expected rates of return (YTM) for each bond? d) How would change the price of each bond if the required rate of return (current 4% for Caterpillar and 5% for the Intel and with annual coupon) increased by 2% What will you deduce about the relationship between market interest rate and bond prices? .
- 9:25 K (Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 12 percent interest annually and have 8 years until maturity. You can purchase the bond for $1,125. VO) a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 8 percent? ||| 2.4G.31% a. The yield to maturity on the Saleemi bonds is %. (Round to two decimal places.) = O5 ints Ashburn Corporation issued 20-year bonds two years ago at a coupon rate of 7.7 percent. The bonds make semiannual payments. If these bonds currently sell for 107 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) YTM 6.63 %5. Chapter MC, Section 87, Problem 087 Algo Moerdyk Corporation's bonds have a 15-year maturity, a 10.15% semiannual coupon, and a par value of $1,000. The going interest rate (ra) is 7.90%, based on semiannual compounding. What is the band's price? a. $1,193.77 b. $1,195.72 c. $1,262.83 d. $1,230.60 e. $1,125.52
- 0 Question 1 Staind, Inc., has 12 percent coupon bonds on the market that have 22 years left to maturity. The bonds make semiannual payments. If the YTM on these bonds is 6 percent, what is the current bond price? Answer the question with 2 decimals (e.g. 1030.12) 1,727.63 Question 2 Ackerman Co. has 7 percent coupon bonds on the market with 8 years left to maturity. The bonds make annual payments. If the bond currently sells for $1063.25, what is its YTM? Answer with 4 decimals (e.g. 0.0123) 0.5982Boxer Corp is issuing $600,000 8% 5 year bonds when bond investors want a return of 10%. Interest is payable semiannually Caculate Present Value of Bond Calculate Present Value of Interest Payments What is selling price of bond? did the bond sell at face value discount or premium?Homework i S 99+ Ashburn Company issued 15-year bonds two years ago at a coupon rate of 9.4 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM? 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 W X ((( % Saved 94°F Mostly sunny Save & Exit Check m )) 9/
- ange P9-8 (similar to) Question Help ▼ (Yield to maturity) A bond's market price is $750. It has a $1,000 par value, will mature in 12 years, and has a coupon interest rate of 8 percent annual interest, but makes its interest payments semiannually. What is the bond's yield to maturity? What happens to the bond's yield to maturity if the bond matures in 24 years? What if it matures in 6 years? a. The bond's yield to maturity if it matures in 12 years is %. (Round to two decimal places.) "orked nt Scor pts: uestion uestion uestion urse (Busin of UselPriv Enter your answer in the answer box and then click Check Answer. Check Answer Clear All parts remainingBond value 5. Essex Biochemical Co. has a $1,000 par value bond outstanding that pays (LO3) 10 percent annual interest. The current yield to maturity on such bonds in the market is 7 percent. Compute the price of the bonds for these maturity dates: а. 30 years. 5 years. 1 year. b. 15 y с.6. [HW] $100,000 bond redeemable at par on October 1, 2038, is purchased on January 15, 2017. Interest is 5.9% payable semi-annually and the yield is 9% compounded semi- annually. a) What is the cash price of the bond? b) What is the accrued interest? c) What is the purchase price? SDT : CPN = RDT = RV = АСT 2/Y YLD = PRI = Al = a) $70,634.65 b) $1718.13 c) 72,352.78