Question

Kenny Enterprises has just issued a bond with a par value of
$1,000, a maturity of twenty years, and a coupon rate of 7.3%
with semiannual payments. What is the cost of debt for Kenny
Enterprises if the bond sells at the following prices? What do you
notice about the price and the cost of debt?

a. $946.88

b. $1,000.00

c. $1,073.64

d. $1, 239.11

Answer #2

answered by: anonymous

Cost of debt. Kenny Enterprises has just issued a bond with a
par value of $1,000, a maturity of twenty years, and a coupon
rate of 8.7% with semiannual payments. What is the cost of debt
for Kenny Enterprises if the bond sells at the following prices?
What do you notice about the price and the cost of debt? a.
$967.91 b. $1,000.00 c. $1,055.87 d. $1,132.33 a. What
is the cost of debt for Kenny Enterprises if the bond...

1. A $1,000 par value bond was just issued with a 30 year
maturity and a 6% coupon rate. If an investor has a required return
of 8%, how much should they pay for this bond?
Make sure to include 2 decimals in your answer.
2. A $1,000 par value bond was originally issued with a 30 year
maturity and a 9% coupon rate. 8 years have passed since the bond
was issued and the bond now has 22 years...

Microhard has issued a bond with the following
characteristics:
Par: $1,000
Time to maturity: 10 years
Coupon rate: 13 percent
Semiannual payments
Calculate the price of this bond if the YTM is
1. 13%
2. 15.%
3. 11%

Valuing Bonds?Microhard has issued a bond with the following
characteristics: Par: $1,000 Time to maturity: 23 years Coupon
rate: 7 percent Semiannual payments Calculate the price of this
bond if the YTM is 7 percent: ( I need to following
information)
Settlement
Maturity
Rate
YTM
Redemption
Frequency
Basis
Bond Price
Multiply by 10

Microhard has issued a bond with the following
characteristics:
Par: $1,000
Time to maturity: 12 years
Coupon rate: 7 percent
Semiannual payments
Calculate the price of this bond if the YTM is (Do not
round intermediate calculations and round your answers
to 2 decimal places, e.g., 32.16.):
Price of the Bond
a.
7 percent
$
b.
9 percent
$
c.
5 percent
$

Microhard has issued a bond with the following characteristics:
Par: $1,000 Time to maturity: 15 years Coupon rate: 7 percent
Semiannual coupon payments for questions a and b / Quarterly coupon
payments for question c Calculate the price of this bond if the YTM
is:
a. 7 percent
b. 9 percent
c. 5 percent
- can someone solve this without using excel please?? Thank
you!

Microhard has issued a bond with the following characteristics.
Par $1,000
Time to maturity 20 years
Coupon rate 7%
Semi-annual payments
Calculate the price of this bond if the YTM is
7%
9%
5%

Several years ago Samuel Enterprises sold a $1,000 par value, 7%
semi annual coupon bond that now has 20 years to maturity. The bond
is noncallable and currently sells for $975. The company’s tax rate
is 25%. What is Samuel Enterprises' after-tax cost of debt?
a.
4.33%
b.
6.22%
c.
7.24%
d.
5.43%
e.
8.29%

A bond's current dollar price is $1,000, the same as its par
value. The bond has 20 years to maturity and a 6% coupon rate. The
bond makes semiannual coupon payments. What is the bond’s yield to
maturity?

Endicott Enterprises Inc. has twenty years remaining on Ghc 1,000
par value semiannual coupon bonds paying a coupon of Ghc40. If the
yield to maturity on these bonds is 6% per year, what is the
current price?

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