Moody's Rating S&P Rating Description Cou A+ A1 The Coca-Cola Co 2..875% 03/10/2025 191317BS9 The Coca-Cola Bonds have semi-annual coupon payments. The Yield to Maturity (YTM) on these bonds was 1.23% as of March 2
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- 2. Determine the purchase price and the amount of premium/discount of the given bonds. Face Value Coupon Rate Yield Rate Redemption Date Purchase Date Purchase Price ? a. $1000.00 5.25% 5.25% January 01, 2024 January 01, 2019 b. $5000.00 4.75% 6.75% October 20, 2028 October 20, 2018 ? c. $10,000.00 7.85% 4.15% August 16, 2034 August 16, 2014 ? Amount of Premium/Discount ? ? ?E? CengageNOWv2| Online teachin x A Login enow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogre. O eBook Bond Price United States Steel Corporation's (X) 7.5% bonds due in 2022 were reported as selling for 103.2. Were the bonds selling at a premium or at a discount? Why is United States Steel able to sell its bonds at this price? The bonds were selling at a because the market rate of interest for similar quality bonds was than 7.5%. Previous Next Check My Work 836 AN 12/3/201. The following table shows the yield to maturity (YTM) of various types of bonds on March 15, 2022. 2-year 5-year 10-year U.S. Treasury Corp. AAA Corp. AA 2.216% 2.704% 3.159% 1.852% 2.107% 2.146% 2.117% 2.535% 2.942% The YTM of a 3-month T-bill is 0.46%. a. What is the expected yield of a three-year Treasury two years from the date above according to the pure expectations theory? b. What is the risk premium of a 5-year T-note? c. What explains the 0.428% difference in YTM between a 5-year U.S. Treasury and a 5-year AAA corporate bond?
- n A $105,000 bond redeemable at par on October 15, 2028 is purchased on May 9,2017. The bond interest rate (coupon rate) is 8.94% payable semi-annually and the yield (market interest rate) is 2.24% compounded semi-annually. Should this bond sell at a Premium or a Discount? (Premium or Discount) a.) Determine the value of the coupon. b.) Use Excel's COUPNUM function to find the number of coupons left on the bond. c.) Determine the Present Value of the bond, at the last coupon date. Rounded to 2 decimals. d.) Determine the Present Value of the coupons at the last coupon date. Rounded to 2 decimals. e.) What is the purchase price of the bond on the last coupon date? 1.) Use Excel's COUPDAYBS to determine the number of days from the last coupon date to the purchase date g.) Use Excel's COUPDAYS to determine the number of days between coupon dates. h.) Use the ratio of days as 'n' to calculate the purchase price of the bond on the settlement dateOn 31st March 2016 you saw the following information about bonds. Name of Security Face Value Maturity Date Coupon Rate Coupon Date(s) Zero Coupon 10,000 31st March 2026 N.A. N.A. t-Bill 1,00,000 24th June 2016 N.A. N.A. 10.71%GOTT 2026 100 31st March 2026 10.71 31st March 10%GOTT 2021 100 31st March 2021 10 31st March & 31st October 1A) If the 10-year yield is 7.5%. What price the ZERO Coupon-Bond would fetch on 31st March 2016D ook You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons. Estimated $ Volume Company (Ticker) Coupon Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) 5.700 7.150 ?? Maturity January 15, 2037 January 15, 2031 January 15, 2033 Last Price Last Yield 94.219 ?? (000s) ?? 57,365 6.08 48,944 94.765 6.90 43,805 What is the coupon rate for the Williams Company bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. nt Coupon rate ences %
- On 31st March 2016 you saw the following information about bonds. Name of Security Face Value Maturity Date Coupon Rate Coupon Date(s) Zero Coupon 10,000 31st March 2026 N.A. N.A. t-Bill 1,00,000 24th June 2016 N.A. N.A. 10.71%GOTT 2026 100 31st March 2026 10.71 31st March 10%GOTT 2021 100 31st March 2021 10 31st March & 31st October 1B) What will be the annualized % yield of the treasury bill of face value which is currently traded at 98,000?A $1,000 bond that pays interest at j23D6% is redeemable at par on March 1, 2025. Find the purchase price that would have been paid on September 1, 2010 to yield the investor j2=4.8%. Your Answer: AnswerB. Complete the information below using Bonds. Redemption Value (F) Conversion per year (m) Bimonthly Coupon Payments (k) Bond Rate (r) 11. 18% P7.50 P680 Quarterly 11% 12. P900 Quarterly 12.8% 13. P1,300 Bimonthly 12% 14. 15. Annually 15% P105.00
- 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) 72,352.78Ma4. 3. A $25000, 11.5% bond with semi-annual coupons redeemable at par March 1, 2025, was purchased on November 15, 2018, to yield 9.5% compounded semi-annually. (a) What was the purchase price of the bond? (b) Find the value of discount or premium. Mention whether the value is premium or discount.← The Airfoil Aircraft Company has issued 5% convertible bonds that mature October 1, 2029. Suppose the bonds are issued October 1, 2021, and pay interest each April 1 and October 1. (Click the icon to view the bond data.) Read the requirements. Requirement 1. Assume the bonds are issued at a price of 93.4. Using the straight-line method of amortization for bond discount: a. Calculate interest expense on bonds payable for each semiannual interest payment period. Use two decimal places. (Round intermediary and final calculations to the nearest cent.) The total interest expense each interest period if the bonds are issued at 93.4 is