Question

Whipple Corp. just issued 300,000 bonds with a coupon rate of
6.14 percent paid semiannually that mature in 25 years. The bonds
have a YTM of 6.58 percent and have a par value of $2,000. How much
money was raised from the sale of the bonds? **(Round your
intermediate calculations to two decimal places and final answer to
the nearest whole dollar amount.)**

Answer #1

The question is solved with the help of a financial calculator

Number of bonds= 300,000

Future value= $2,000

Time= 25 years*2= 50 semi-annual periods

Yield to maturity= 6.58%/2= 3.29%

Coupon payment = 6.14%/2= 3.07% 0.0307*2,000= $61.40

The present value of the bonds is calculated by entering the below in a financial calculator:

FV= 2,000; N= 50; I/Y= 3.29; PMT= 61.40

Press CPT and PV to calculate the present value of the bonds

The present value of the bonds is $1,892.77.

Money raised from the sale of the
bonds= $1,892.77*300,000 = **$567,831,000.**

Whipple Corp. just issued 340,000 bonds with a coupon rate of
6.38 percent paid semiannually that mature in 25 years. The bonds
have a YTM of 6.82 percent and have a par value of $2,000. How much
money was raised from the sale of the bonds? (Round your
intermediate calculations to two decimal places and final answer to
the nearest whole dollar amount.)

10.
Whipple Corp. just issued 275,000 bonds with a coupon rate of
5.99 percent paid semiannually that mature in 20 years. The bonds
have a YTM of 6.43 percent and have a par value of $2,000. How much
money was raised from the sale of the bonds? (Round your
intermediate calculations to two decimal places and final answer to
the nearest whole dollar amount.)
Multiple Choice
$1,004.12 million
$550.00 million
$488.11 million
$522.98 million
$502.06 million

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(Do not round intermediate calculations and enter your
answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
YTM = %
2.
Even though most corporate bonds in the United States make coupon
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The bonds issued by Stainless Tubs bear a 6 percent coupon,
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a. If the interest is paid semiannually, the
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$ .
(Round to the nearest cent.)
b. If the interest is paid annually,...

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(Do not round intermediate calculations. Enter your answer
as a percent rounded to 2 decimal places, e.g.,
32.16.)
YTM
%

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32.16.)
YTM
%

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The value of the enterprise bonds if the interest is paid
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What is the dollar price of each bond? (Do not round
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