Your company currently has 5.25% coupon-rate bonds (coupons are paid semi-annually) with ten years to maturity and a price of $1076. If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to set? (Assume that for both bonds, the next coupon payment is due in exactly 6 months.) You need to set a coupon rate of %. (Round to two decimal places.) C

Your company currently has 5.25% coupon-rate bonds (coupons are paid semi-annually) with ten years to maturity and a price of $1076. If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to set? (Assume that for both bonds, the next coupon payment is due in exactly 6 months.) You need to set a coupon rate of %. (Round to two decimal places.) C

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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Similar questions

Your company currently has $1,000 par, 6.5% coupon bonds with 10 years to maturity and a price of $1,084. If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to set? Assume that for both bonds, the next coupon payment is due in exactly six months. (Round to two decimal places.)
$15,000 is deposited for 4 years in an account earning 8% interest. Calculate the future value of the investment if interest is compounded semiannually. ANS.$20,528.54 2.A bond with an $8000 face value has a 3.5% coupon and a 3-year maturity. What is the total of the interest payments paid to the bondholder? ANS.$840 ANSWERS ARE GIVEN. I JUST NEED TO KNOW THE SOLUTION. THANKS
You purchase 6,500 bonds with a par value of $1,000 for $981 each. The bonds have a coupon rate of 10.4 percent paid semiannually and mature in 10 years. How much will you receive on the next coupon date? How much will you receive when the bonds mature?
Harrimon Industries bonds have 5 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 8%. What is the yield to maturity at a current market price of $798? Round your answer to two decimal places. % $1,074? Round your answer to two decimal places.
Suppose that the coupon rate for a TIPS is 5%. Suppose further that an investor purchases $10,000 of par value (initial principal) of this issue today and that the annual inflation rate is 3.5%. 1. What is the (inflation-adjusted) dollar coupon interest that will be paid in cash at the end of the first six months? 2. What is the (inflation-adjusted) dollar coupon interest that will be paid in cash at the end of the second six months? 3. What is the inflation-adjusted principal at the end of the 2nd six months?
Using an annual effective interest rate of 10%, the Macaulay Duration (in years) of a 10-year 100 par value bond with annual coupons of X is 6.96 years. Calculate X. Give your answer as a decimal rounded to two places (i.e. X.XX).
your company currently has $1000 par, 5.75% coupon bonds with 10 years to maturity and a price of $1079. If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to set? Assume that for both bonds, the next coupon payment is due in exactly six months.
B) Warne Unlimited 5-year bonds are currently trading at $768 per $1,000 of face value. If these bonds pay interest semi-annually and the market requires that they offer a 10% annual rate of return, what annual coupon rate is being offered?
You purchased a $1000 face value zero-coupon bond one year ago for $260.3. The market interest rate is now 7.36 percent. If the bond had 19 years to maturity when you originally purchased it, what was your total return for the past year?Assume semiannual compounding. Answer as a percentage to two decimals (if you get -0.0435, you should answer -4.35).
Your company currently has $1,000 par, 5.5% coupon bonds with 10 years to maturity and a price of $1,080. If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to set? Assume that for both bonds, the next coupon payment is due in exactly six months. You need to set a coupon rate of %. (Round to two decimal places.)
Your company wants to raise $8.0 million by issuing 30-year zero-coupon bonds. If the yield to maturity on the bonds will be 5% (annual compounded APR), what total face value amount of bonds must you issue?
A bond has a par value of $1,000, a time to maturity of 15 years, and a coupon rate of 7.80% with interest paid annually. If the current market price is $780, what will be the approximate capital gain of this bond over the next year if its yield to maturity remains unchanged? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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