Question

Assume that on January 1, 2005, Ryan Industries issued ($1000 par) bonds with an annual coupon...

Assume that on January 1, 2005, Ryan Industries issued ($1000 par) bonds with an annual coupon rate of 12% paid semiannually. The bonds, when issued, had an original maturity of 30 years, so the maturity date is January 1, 2035. By january 1, 2018, the bond price was $1,177.70 in the market. What was the bond's market yield-to-maturity on January 1, 2018?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A few years ago, Spider Web, Inc. issued bonds with a 12.26 percent annual coupon rate,...
A few years ago, Spider Web, Inc. issued bonds with a 12.26 percent annual coupon rate, paid semiannually. The bonds have a par value of $1,000, a current price of $700, and will mature in 12 years. What would the annual yield to maturity be on the bond if you purchased the bond today? Flower Valley Company Bonds have a 13.91 percent coupon rate. Interest is paid semiannually. The bonds have a par value of $1000 and will mature in...
Redd Industries has just issued a callable, $1000 par value, five-year, 5% coupon bond with semiannual...
Redd Industries has just issued a callable, $1000 par value, five-year, 5% coupon bond with semiannual coupon payments. The bond can be called at par in three years or anytime thereafter on a coupon payment date. If the bond is currently trading for $950.00, then its yield to maturity is closest to: Select one: A. 6.5% B. 6.18% C. 6.0% D. 6.8% Redd Industries has just issued a callable, $1000 par value, five-year, 5% coupon bond with semiannual coupon payments....
Part 1: On January 1 2018, Louis Company issued bonds with a Par Value of $400,000....
Part 1: On January 1 2018, Louis Company issued bonds with a Par Value of $400,000. The coupon interest rate on the bond is 10%, and it has a maturity of 3 years. Interest is paid semiannually on June 30th and December 31 of each year. Value of Bond @ 8%= Value of Bond @10%= Part 2: From part 1, using the effective interest method, show how the bond premium would be amortized over the life of the bond. Fill...
Tano issues bonds with a par value of $84,000 on January 1, 2017. The bonds’ annual...
Tano issues bonds with a par value of $84,000 on January 1, 2017. The bonds’ annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $77,807.    1. What is the amount of the discount on these bonds at issuance? 2. How much total bond interest expense will be recognized over...
Yield to maturity Moe’s Inc. has bonds outstanding with a par value of $1000 and 10...
Yield to maturity Moe’s Inc. has bonds outstanding with a par value of $1000 and 10 years to maturity. These bonds pay a coupon of $45 every six months. Current market conditions are such that the bond sells for $938. Calculate the yield to maturity on the issue. Duration A newly issued 5-year Altec Corp. bond has a price of $1,095.99, a par value of $1,000, and pays annual interest at a 12% coupon rate. Find the duration of the...
2. Ryan Corporation sold and issued $30,000, 4-year, 8% annual coupon interest rate bonds dated January...
2. Ryan Corporation sold and issued $30,000, 4-year, 8% annual coupon interest rate bonds dated January 1, 19X1, on April 1, 19X1. The bonds pay interest semiannually on June 30 and December 31. The effective market annual rate was 10%. Ryan's year-end is December 31. Calculate the cash issue price on April 1, and record the journal entries for the first 2 interest periods.
The Pennington Corporation issued a new series of bonds on January 1, 1993. The bonds were...
The Pennington Corporation issued a new series of bonds on January 1, 1993. The bonds were sold at par ($1,000), had a 12% coupon, and will mature in 30 years on December 31, 2022. Coupon payments are made semiannually (on June 30 and December 31). a. What was the YTM on the date the bonds were issued? b. What was the price of the bonds on January 1, 1998 (5 years later), assuming that interest rates had fallen to 10%?...
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 12 years to maturity, and a coupon rate of 7 percent paid annuallly. If the yield to maturity is 10 percent, what is the current price of the bond?
The 15​-year, ​$1000 par value bonds of Waco Industries pay 8 percent interest annually. The market...
The 15​-year, ​$1000 par value bonds of Waco Industries pay 8 percent interest annually. The market price of the bond is ​$1 comma 115​, and the​ market's required yield to maturity on a​ comparable-risk bond is 5 percent. a.  Compute the​ bond's yield to maturity. b.  Determine the value of the bond to you given the​ market's required yield to maturity on a​ comparable-risk bond. c.  Should you purchase the​ bond?
Tano issues bonds with a par value of $91,000 on January 1, 2017. The bonds’ annual...
Tano issues bonds with a par value of $91,000 on January 1, 2017. The bonds’ annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $84,291. 1. What is the amount of the discount on these bonds at issuance? 2. How much total bond interest expense will be recognized over the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT