Question

A 10-year 5.2% coupon bond was issued 6 years ago. Similarly risky bonds are yielding 5.5%. Assume semi-annual coupon payments. The bond's price should be $___________. Do not round any intermediate work. Round your *final* answer to 2 decimal places (example: 1234.567 = 1234.57). Do not enter the $ sign. Margin of error for correct responses: +/- .05.

Answer #1

K = Nx2 |

Bond Price =∑ [(Semi Annual Coupon)/(1 + YTM/2)^k] + Par value/(1 + YTM/2)^Nx2 |

k=1 |

K =4x2 |

Bond Price =∑ [(5.2*1000/200)/(1 + 5.5/200)^k] + 1000/(1 + 5.5/200)^4x2 |

k=1 |

Bond Price = 989.36 |

Acorp's outstanding bonds have a 4.7% coupon bond with 6 months
remaining until maturity is currently trading at $988.1. The firm's
marginal tax rate is 30%. Assume semi-annual coupon payments. The
company's after-tax cost of debt is__________%.
Do not round any intermediate work, but round your
final answer to 2 decimal places (example: enter 12.34 for
12.34%). Do not enter the % sign.
Margin of error for correct responses: +/- .05%.

A 4% coupon bond with 6 months remaining until maturity is
currently trading at $1000.27. Assume semi-annual coupon payments.
The bond's YTM is__________%. Do not round any intermediate work.
Round your *final* answer to 2 decimal places (example: .1234567 =
12.35). Do not enter the % sign. Margin of error for correct
responses: +/- .03%.

Company B had issued 10-year bonds two years ago at the coupon
rate 5.5%. The bond makes annual payments. The yield to maturity
(YTM) of these bonds is 4%. The face value of the bond is
€1000.
a) What is the coupon payment each year?
b) Calculate the current bond price. Is this premium or a
discount bond? Explain

Langford Co. issued 14-year bonds a year ago at a coupon rate of
7.8%. The bonds make semiannual payments. If the YTM on these bonds
is 6.1%, what is the current bond price? (Do not round intermediate
calculations. Round the final answer to 2 decimal places. Omit $
sign in your response.) Current bond price $

1. A 4% coupon bond with 6 months remaining until maturity is
currently trading at $997.78. Assume semi-annual coupon payments.
The bond's YTM is__________%. Do not round any intermediate work.
Round your *final* answer to 2 decimal places (example: .1234567 =
12.35). Do not enter the % sign.
2. A bond with 9 years left to maturity is trading for $1010. It
pays coupons semiannually. Its YTM is currently 3.6%. The coupon
rate for this bond must be ________%.
Do...

JamesBond Corporation issued 10-year bonds two years ago. The
coupon rate on these bonds is 7.5 percent. The bonds make
semiannual coupon payments. Today you can buy each of these bonds
for 105 percent of par value. Calculate the YTM. (Do not round
intermediate calculations. Enter your answer as a percent rounded
to 2 decimal places, e.g., 32.16.)

Alco issued a 20 year bond two years ago the coupon rate was
7.10% the bonds make semi-annual payments the par value is $1,000
the bond sell for 105% of par what is the yield to maturity?

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....

Edison Utilities issued 10-year bonds one year ago at a coupon
rate of 8,75%.The bonds make semi annual payments. If the YTM on
these bonds is 7,25%,what is the current bond price?

Jiminy's Cricket Farm issued a 30-year, 8 percent coupon bond 7
years ago. The bond makes semi-annual coupon payments and sells for
90 percent of its face value. The face value of the debt issue is
$24 million and the yield to maturity is 9.036%. Note: YTM for
coupon bonds is quoted as an APR with semi-annual compounding.
In addition, the company has a second debt issue on the market,
a zero coupon bond with 7 years left to maturity;...

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