Wine and Roses, Inc., offers a bond with a coupon of 7.0 percent with semiannual payments and a yield to maturity of 7.89 percent. The bonds mature in 9 years. What is the market price of a $1,000 face value bond?   multiple choice $1,020.13 $1,388.48 $1,498.35

Q: Jerome Corporation's bonds have 15 years to maturity, an 8.75% coupon paid semiannually, and a…

A: Yield to call is the rate of return the bond earns till the date of call, it considers the current…

Q: he bonds issued by Stainless Tubs bear a 6 percent coupon, payable semiannually. The bonds mature in…

A: Yield to maturity is the rate of return realized on bond when bond is held till maturity and all…

Q: Bearcat Corporation is offering bonds to the market with a coupon of 15 percent. The bonds make…

A: Market price refers to the price at which the bonds can be sold and purchased in the market by…

Q: Oil Wells offers 5.65 percent coupon bonds with semiannual payments and a yield to maturity of 6.94…

A: Face value (FV) = $ 1000 Coupon rate = 5.65% Semi annual coupon amount (C) = 1000*0.0565/2 = $ 28.25…

Q: Tangshan Industries has issued a bond which has a $1,000 par value and a 15 percent annual coupon…

A: The yield to maturity refers to the return that the investor earns if they hold the bond till its…

Q: Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% coupon rate (paid semiannually), and a…

A: Given details: Face value of the bonds = $1,000 Coupon rate (paid semiannually) = 7.25% Coupon…

Q: Nesmith Corporation's outstanding bonds have a $1,000 par value, a 8% semiannual coupon, 8 years to…

A: Par value is $1,000Coupon rate is 8%Coupon frequency is semi annual i.e. 2Time to maturity is 8…

Q: Alpha Natural Resources (NYSE: ANR) has issued a bond which has a $1,000 par value and a 15 percent…

A: Using the rate function in excel

Q: Sailfish Corp has a bond issue outstanding that pays a 5.85 percent coupon and matures in 5 years.…

A: The YTM is the yield on the bond that can be received by the bondholder for carrying the bond till…

Q: Footsteps Co. has a bond outstanding with a coupon rate of 4.8 percent and annual payments. The bond…

A: Bonds are fixed-income assets that serve as a representation of investor loans to borrowers…

Q: Ninja Company's bonds mature in 10 years, have a par value of $1,000, and make an annual coupon…

A: Par value of the bond is $1,000. Maturity is 10 years. Annual coupon payment is $70. Required…

Q: Too Young, Incorporated, has a bond outstanding with a coupon rate of 6.2 percent and semiannual…

A: Compound = Semiannually = 2Coupon Rate = 6.2 / 2 = 3.1%Price of Bond = pv = $1954Time = nper = 22 *…

Q: Brookline issues bonds with a coupon rate of 9%, face value of $190,000, and maturity in 10 years.…

A: Given, Face value = $190,000 Coupon rate = 9%/2 = 4.5% Stated rate = 8%/2 = 4%

Q: A bond with a face value of $300,000and semi-annual coupon of 5%matures in 3 years, It is offered at…

A: The cost of purchase of the bond can be calculated by multiplying face value with offered price.Cost…

Q: A company issues a callable (at par) five-year, 7% coupon bond with annual coupon payments. The bond…

A: Bond period = 5 yearsCoupon rate = 7 %Bond price = $110Par Value = $100Callable period = In one year…

Q: Wine and Roses, Incorporated, offers a bond with a coupon of 5.0 percent with semiannual payments…

A: Semiannual coupon amount (C) = $25 (i.e. $1000 * 0.05 / 2)Semiannual yield to maturity (r) = 0.02815…

Q: An ordinary bond of AGL Corporation has an annual coupon rate of 8% and a face value of $1,000. The…

A: Current price of bond is the price which can be paid for purchase of the bond. It is also called…

Q: Reach for the Sky, Inc., has a bond outstanding with $1,000 par value, a coupon rate of 5.96 percent…

A: To provide required return to investors, issue price should be equal to the present value of coupon…

Q: Miles Corporation's bonds have a 15-year maturity, an 8% semi-annual coupon, and a par value of…

A: The bond's price is present value of future coupons and par value receivable at maturity. bond pays…

Q: A bond has a yield to maturity (YTM) of 5%, with a maturity of 30 years, the coupon payment is $25…

A: SEMI ANNUAL COMPOUNDING       Yield to maturity Years (30*2) 60 coupon amount (PMT)  25 Face…

Q: Miles Corporation's bonds have a 15-year maturity, an 8% semi-annual coupon, and a par value of…

A: The amount that the bondholder expects in order to invest in bonds at the time of maturity is…

Q: Rogoff Co.'s 13-year bonds have an annual coupon rate of 9.66%. Each bond has face value of $1,000…

A: Since the payments are done semi annually Therefor in this case  rate will 11.36 / 2 = 5.68% Coupon…

Q: Too Young, Incorporated, has a bond outstanding with a coupon rate of 6.5 percent and semiannual…

A: The cost of debt is the expected return of the bond. The after-tax cost of debt is the cost of debt…

Q: Media Properties has a 4.30% coupon bond outstanding that was issued 5 years ago with an original…

A: The bond price is the discounted value of future coupons and par value of the bond. It is the price…

Q: A corporate bond has a face value of $1,000, and pays a $14 coupon semiannually (that is, the bond…

A: Variables in the question :Face value=$1000Coupon rate=2.8% (paid semi-annually)N=6…

Q: Footsteps Company has bond outstanding with a coupon rate of 6.4 percent and annual payments. The…

A: The yield to maturity indicates how much money you will get if you hold it until it matures. It…

Q: Tom Inc. bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest…

A: Par value  (FV) = $1000 Annual coupon amount (C) = 65/2 = $32.50 Years to maturity = 8 Years Number…

Q: Crossfade corporation has a bond with a par valhe of $2000 that sells for $ 1936.84. The bond has a…

A: Bonds are the securities issued by the company in order to raise money. These are eligible for the…

Q: Ninja Company's bonds mature in 10 years, have a par value of $1,000, and make an annual coupon…

A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…

Q: roke Benjamin Co. has a bond outstanding that makes semiannual payments with a coupon rate of 5.5…

A: Yield to maturity can be calculated by following function in excel=RATE (nper, pmt, pv, [fv],…

Q: You own a $1,000 face value Bear Stearns Bond with a 6.5% coupn with semiannual coupons, the bond…

A: Yield to maturity on the bond is yield accrued to the investor if held the bond till maturity

Q: Review the Bond Table below; all bonds have semi-annual payments. Security. Coupon Rate Face Value…

A: Coupon rate is the interest rate attached to the bond. It implies that this bond is required to pay…

Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.