Can-Gox Company sold an issue of bonds with 10-year maturity, a $1,000 par value, 9% coupon rate, and semi annual interest payments. A year after the initial offering, the going interest rate had risen to 12%. At what price would the bonds sell? $748.99 $739.94 $837.59 $901.65
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- Bond Valuation and Interest Rate Risk The Garraty Company has two bond issues outstanding. Both bonds pay 100 annual interest plus 1,000 at maturity. Bond L has a maturity of 15 years, and Bond S has a maturity of 1 year. a. What will be the value of each of these bonds when the going rate of interest is (1) 5%, (2) 8%, and (3) 12%? Assume that there is only one more interest payment to be made on Bond S. b. Why does the longer-term (15-year) bond fluctuate more when interest rates change than does the shorter-term bond (1 year)?Question Z Megan's Automotive Repair has 24,600 bonds outstanding, . The bonds pay a 9.80 percent semiannual coupon, mature in 12 years, and currently sell at 97 percent of par. Calculate the company's required return on debt.Problem 1 Dundee Inc. bonds are currently selling for $1,250. They pay an annual coupon of $90, have a maturity of 25 years and a face value of $1,000, but can be redeemed in 5 years at $1,050. What is the difference between the YTM of this bond and its YTC? Problem 2 Gross Nickle Corporation issued 20-year 7.5% annual coupon bonds at $1,000 face value a year ago. Today, the YTM of these bonds is 5.5%. What is the current price of the bonds?
- 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. $1,149.557A-10 Recycler Battery Corporation (RBC) sold zero coupon bonds for $214.50 each 5 years ago. RBC's zeros were issued with a 20-year maturity and a $1,000 par value. The bonds is redeemable at a premium of 7% above their accumulated value on the call date, ten years after the issue date. What average rate of return does an investor who buys the bonds today hope to gain if they sell for $239.39 in the market? a. 15.7%b. 12.4%c. 10.0%d. 9.5%e. 8.0%aa.2 A company issued 8%, 10-year bonds with a face amount of $100 million. The market yield for bonds of similar risk and maturity is 4%. Interest is paid semiannual. At what price did the bonds sell? NOTE: Do not round intermediate calculations. Round your final answer to the nearest whole dollar.
- Question 1 ALLSTON Corporation’s bonds have 15 years remaining to maturity and these bonds have $1,000 par value and a coupon rate of 10%. The bonds have a yield to maturity of 8%: What is the current market price of those bonds? if interest is paid annually (6 marks) if interest is paid semi-annually (7 marks) KENNEDY bonds have 14 years to maturity and have a par value of $1,000 and coupon rate of 12%. If the bonds sell for $850 and the coupon interest rate is 10%; what is their yield to maturity?View Policies Current Attempt in Progress Carla Vista, Inc., has four-year bonds outstanding that pay a coupon rate of 7.0 percent and make coupon payments semiannually. If these bonds are currently selling at $921.69. What is the yield to maturity that an investor can expect to earn on these bonds? Assume face value is $1,000. (Round answer to 1 decimal place, e.g. 15.2%) Yield to maturity % What is the effective annual yield? (Round answer to 1 decimal place, eg. 15.2%) Effective annual yield. %QUESTION 1 Three years ago, Dinoco issued 25-year, 2.6% semi-annual coupon bonds that currently trade for $682. If each bond features a6year deferred call feature with a 4 coupon payment penaity in addition to face value ($1000) what is the yield-to-call? O 37.% O 182% O 21.9% NFIE O
- Problem 3: Suppose Ford Motor Company sold an issue of bonds with a 5-year maturity, a P13,700 par value, a 11.02% coupon rate. Two years after the bonds were issued, the going rate of interest on bonds such as these had risen to 13.98 percent. At what price would the bonds sell?5 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 %Boxer 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?