Question

Please answer the 8 questions. Thank you!

1. Cullumber, Inc., has issued a three-year bond that pays a coupon rate of 9.4 percent. Coupon payments are made semiannually. Given the market rate of interest of 4.0 percent, what is the market value of the bond? Round answer to 2 decimal places

2. Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and interest is compounded semiannually. If similar bonds in the market yield 11.6 percent, what is the value of these bonds? Round answer to 2 decimal places

3. Cullumber Real Estate Company management is planning to fund a development project by issuing 10-year zero coupon bonds with a face value of $1,000. Assuming semiannual compounding, what will be the price of these bonds if the appropriate discount rate is 12.8 percent? Round answer to 2 decimal places

4. Kevin Hall bought 10-year, 13.3 percent coupon bonds issued by the U.S. Treasury three years ago at $908.72. If he sells these bonds, for which he paid the face value of $1,000, at the current price of $819.92, what is his realized yield on the bonds? Assume similar coupon-paying bonds make annual coupon payments. (Round intermediate calculations to 5 decimal places and final answer to 2 decimal places)

5. Wildhorse Corp. management plans to issue seven-year zero coupon bonds. It has learned that these bonds will sell today at a price of $442.26. What is the yield to maturity on these bonds? Round answer to 3 decimal places

6. Pharoah, Inc., has four-year bonds outstanding that pay a coupon rate of 7.7 percent and make coupon payments semiannually. If these bonds are currently selling at $914.890.

A. What is the yield to maturity that an investor can expect to
earn on these bonds? Round answer to 1 decimal place

Yield to maturity __ _ _ _ %

B. What is the effective annual yield? Round answer to 1 decimal place

Effective annual yield _ _ _ _ _ _ _ %

7. Michelle Walker is looking to invest in a three-year bond that makes semi-annual coupon payments at a rate of 5.225 percent. If these bonds have a market price of $990.00, what yield to maturity can she expect to earn?Round intermediate calculations to 5 decimal places and final answer to 2 decimal places

Yield to maturity __ _ _ _ %

8. Blossom, Inc., has outstanding bonds that will mature in six years and pay an 8 percent coupon semiannually. If you paid $1,004.76 today and your required rate of return was 7.1 percent. (Round intermediate calculations to 5 decimal places and final answer to 2 decimal places)

How much should you have paid for the bond?

Worth of the bond $ _ _ _ _

Answer #1

Question 1:

The market price of the 3 year bond is calculated using excel function =PV(rate, nper, pmt, fv) where

RATE = Semi annual rate = 4%/2 = 2% =0.02

NPER = 3 *2 = 6 semi annual periods

PMT = 9.4%*1000/2 = $47

FV =1000

Market value of the bond =PV(0.02,6,47,1000) = 1,151.24

**Market value of the bond =$1,151.24 (Rounded to two
decimals)**

Note: Only one full question will be answered a time. Please post the other seven questions separately for experts to answer.

1. West Corp. issued 15-year bonds two years ago at a coupon
rate of 8.2 percent. The bonds make semiannual payments. If these
bonds currently sell for 103 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 = %
2.
Even though most corporate bonds in the United States make coupon
payments semiannually, bonds issued elsewhere often have annual
coupon payments....

Module 3 Bond Valuation Worksheet – Complete in Excel.
Please answer the following questions.
1. Renfro Rentals has issued bonds that have an 7% coupon
rate, payable semiannually. The bonds mature in 10 years, have a
face value of $1,000, and a yield to maturity of 8%. What is the
price of the bonds?
2. Thatcher Corporation’s bonds will mature in 30 years. The
bonds have a face value of $1,000 and an 7% coupon rate, paid
semiannually. The price...

Fibbo, Inc. issued one year ago annual coupon paying bonds that
orignially had 13 years to maturity. These bonds have a face value
of $1,000 and a current market value of $1,030. At this market
value, the bonds have a yield-to-maturity of 4.14% What is the
coupon rate for these bonds? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)

Knight, Inc., has issued a three-year bond that pays a coupon
rate of 4.84 percent. Coupon payments are made semiannually. Given
the market rate of interest of 3.56 percent, what is the market
value of the bond? (Round answer to 2 decimal places,
e.g. 15.25.)

Blossom, Inc., has issued a three-year bond that pays a coupon
rate of 7.8 percent. Coupon payments are made semiannually. Given
the market rate of interest of 4.2 percent, what is the market
value of the bond? (Round answer to 2 decimal places, e.g.
15.25.)

2. Knight, Inc., has issued a three-year bond that pays a coupon
of 8.00 percent. Coupon payments are made semiannually. Given the
market rate of interest of 4.90 percent, what is the market value
of the bond? (Round answer to 2 decimal places, e.g. 15.25.)

A 25-year, $1,000 par value zero-coupon rate bond is to be
issued to yield 8 percent. Use Appendix B for an approximate answer
but calculate your final answer using the formula and financial
calculator methods.
a. What should be the initial price of the bond? (Assume annual
compounding. Do not round intermediate calculations and round your
answer to 2 decimal places.)
b. If immediately upon issue, interest rates dropped to 7
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Please answer those three questions clearly
At 5.5 percent bond matures in seven years, pays
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What is the current market price of the bond?
$945.08
$947.21
$944.47
$962.40
Problem
(3 Points) Blue Water bonds have a face value of $1,000,
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Even though most corporate bonds in the United States make
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7.8 percent paid annually.
If the yield to maturity is 8.9 percent, what is the current
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Bond price...

Jiminy's Cricket Farm issued a 30-year, 8 percent coupon bond 7
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