Question

A firm's bonds have a maturity of 12 years with a $1,000 face value, have an 11% semiannual coupon, are callable in 6 years at $1,215, and currently sell at a price of $1,379.19.

What is their nominal yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places.

What is their nominal yield to call? Do not round intermediate calculations. Round your answer to two decimal places.

Lourdes Corporation's 12% coupon rate, semiannual payment, $1,000 par value bonds, which mature in 25 years, are callable 5 years from today at $1,050. They sell at a price of $1,269.64, and the yield curve is flat. Assume that interest rates are expected to remain at their current level.

- What is the best estimate of these bonds' remaining life? Round
your answer to two decimal places.

years

Answer #1

1)

A firm's bonds have a maturity of 10 years with a $1,000 face
value, have an 11% semiannual coupon, are callable in 5 years at
$1,175.15, and currently sell at a price of $1,313.90.
What is their nominal yield to maturity? Do not round
intermediate calculations. Round your answer to two decimal
places.
What is their nominal yield to call? Do not round intermediate
calculations. Round your answer to two decimal places.

A firm's bonds have a maturity of 10 years with a $1,000 face
value, have an 11% semiannual coupon, are callable in 5 years at
$1,178, and currently sell at a price of $1,320.15.
What is their nominal yield to maturity? Do not round
intermediate calculations. Round your answer to two decimal
places.
%
What is their nominal yield to call? Do not round intermediate
calculations. Round your answer to two decimal places.
%

A firm's bonds have a maturity of 10 years with a $1,000 face
value, have an 8% semiannual coupon, are callable in 5 years at
$1,055.06, and currently sell at a price of $1,105.17. What are
their nominal yield to maturity and their nominal yield to call? Do
not round intermediate calculations. Round your answers to two
decimal places

A firm's bonds have a maturity of 8 years with a $1,000 face
value, have an 8% semiannual coupon, are callable in 4 years at
$1,040.15, and currently sell at a price of $1,079.63. What are
their nominal yield to maturity and their nominal yield to call? Do
not round intermediate calculations. Round your answers to two
decimal places.

A firm's bonds have a maturity of 8 years with a $1,000 face
value, have an 8% semiannual coupon, are callable in 4 years at
$1,040.12, and currently sell at a price of $1,080.27. What are
their nominal yield to maturity and their nominal yield to call? Do
not round intermediate calculations. Round your answers to two
decimal places.
YTM: %
YTC: %

A firm's bonds have a maturity of 8 years with a $1,000 face
value, have an 11% semiannual coupon, are callable in 4 years at
$1,151.36, and currently sell at a price of $1,278.60. What are
their nominal yield to maturity and their nominal yield to call? Do
not round intermediate calculations. Round your answers to two
decimal places.
What is their YTM?
What is their YTC?

Lourdes Corporation's 12% coupon rate, semiannual payment,
$1,000 par value bonds, which mature in 10 years, are callable 6
years from today at $1,050. They sell at a price of $1,306.57, and
the yield curve is flat. Assume that interest rates are expected to
remain at their current level.
What is the best estimate of these bonds' remaining life? Round
your answer to two decimal places.
If Lourdes plans to raise additional capital and wants to use
debt financing, what...

A firm's bonds have a maturity of 12 years with a $1,000 face
value, have an 11% semiannual coupon, are callable in 6 years at
$1,200.96, and currently sell at a price of $1,351.36.
What is their nominal yield to maturity? Do not round
intermediate calculations. Round your answer to two decimal
places.
%
What is their nominal yield to call? Do not round intermediate
calculations. Round your answer to two decimal places.
%
What return should investors expect to...

A firm's bonds have a maturity of 12 years with a $1,000 face
value, have an 8% semiannual coupon, are callable in 6 years at
$1,063, and currently sell at a price of $1,118.34.
What is their nominal yield to maturity? Do not round
intermediate calculations. Round your answer to two decimal
places.
What is their nominal yield to call? Do not round intermediate
calculations. Round your answer to two decimal places.
What return should investors expect to earn on...

A firm's bonds have a maturity of 12 years with a $1,000 face
value, have an 8% semiannual coupon, are callable in 6 years at
$1,060.00, and currently sell at a price of $1,113.57. What are
their nominal yield to maturity and their nominal yield to call? Do
not round intermediate calculations. Round your answers to two
decimal places.
_________YTM: %
_________YTC: %
What return should investors expect to earn on these bonds?
Investors would expect the bonds to be...

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