You are analyzing the after-tax cost of debt for a firm. You know that the firm's 12-year maturity, 17.00percent semiannual coupon bonds are selling at a price of $1,483. Assuming that these bonds are the onlydebt outstanding for the firm.Problem 13.19 a1-a3(a1)What is the current YTM of the bonds? (Round intermediate calculations to 4 decimal places, eg. 1.2514and final answer to 2 decimal places, e.g. 15.25%.)YTM%

YTM stands for Yield to Maturity, which is the total return anticipated on a bond if it is held…

Answered: You are analyzing the after-tax cost of…

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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Please help me with this question ytm question
Suppose Ford sold an issue of bonds with a 14-year maturity, a $1400 par value, a 10% coupon rate, and semiannual interest payments. Please use the factor formulae to solve the questions below: (a) Two years after the bonds were issued (after the 4thcoupon amount payments), the going rate of interest on bonds such as these fell to 7%. At what price would the bonds sell? Sell price = $ %3D (keep 2 decimal places) (b) Suppose that, two years after the bonds' issue (after the 4thcoupon amount payments), the going interest rate had risen to 14%. At what price would the bonds sell? Sell price = $ (keep 2 decimal places)
Below you will find the Demand and Supply Curves for $250,000 bonds that mature in 18 years: Qd = 400,000 – 2(P) Qs = 3(P) – 100,000 What is the current market price of these bonds?
You are analyzing the cost of debt for a firm. You know that the firm's 14-year maturity, 8.6 percent coupon bonds are selling at a price of $832.00. The bonds pay interest semiannually. If these bonds are the only debt outstanding, answer the following questions. Problem 13.17 a1-a2(a1) Your answer is incorrect. What is the current YTM of the bonds? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to O decimal places, e.g. 15%.) Current YTM for the bonds %
A firm's bonds have a maturity of 14 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 7 years at $1,063.91, and currently sell at a price of $1,119.63. What are their nominal yield to maturity and their nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places. YTM: YTC: % -Select- v % What return should investors expect to earn on these bonds? I. Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC. II. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM. III. Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM. IV. Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC.
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Cost of debt with fees. Kenny Enterprises will issue a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 11.2% with semiannual payments, and will use an investment bank that charges $30 per bond for its services. What is the cost of debt for Kenny Enterprises at the following market prices? a. $979.18 b. $1,009.76 c. $1,111.03 d. $1,147.97 a. What is the cost of debt for Kenny Enterprises at a market price of $979.18? ☐ % (Round to two decimal places.)
need help on both questions, thank you
Sheridan Corp. has 18-year bonds outstanding. These bonds, which pay interest semiannually, have a coupon rate of 10.065 percent and a yield to maturity of 9.3 percent. Assume face value is $1,000. Problem 8.30(a) Your answer is incorrect. Compute the current price of these bonds. (Round answer to 2 decimal places, e.g. 15.25.) Current price $ eTextbook and Media Save for Later Attempts: unlimited Submit Answer
am. 122.
Give typing answer with explanation and conclusion O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal annual, not semiannual yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $700. What is the bond's nominal coupon interest rate? a.6.15% b.6.58% c.4.86% d.5.72% e.7.01%
Find the value of the following two corporate bonds then discuss how the value of the bonds change when time maturity changes

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