Garrett Company's outstanding bonds have a $1,000 par value, and they mature in 25 years.
Garrett Company's outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal annual yield to maturity is 6.40%. They pay interest semiannually, and sell at a price of $875. What is the bond's nominal coupon interest rate?
Your answer should be between 4.25 and 9.10, rounded to 2 decimal places, with no special characters.
Homework Answers
| Step-1:Calculation of annual coupon payment | ||||||
| Annual coupon payment | =pmt(rate,nper,pv,fv)*2 | Where, | ||||
| = $ 53.91 | rate | = | 0.032 | |||
| nper | = | 50 | ||||
| pv | = | $ -875.00 | ||||
| fv | = | $ 1,000.00 | ||||
| Step-2:Calculation of Coupon Rate | ||||||
| Coupon Rate | = | Annual coupon | / | Face Value | ||
| = | $ 53.91 | / | $ 1,000.00 | |||
| = | 5.39% |
Add Answer to:
Garrett Company's outstanding bonds have a $1,000 par value, and they mature in 25 years.
Garrett Company's outstanding bonds have a $1,000 par value, and they mature in 25 years. Their...
Garrett Company's outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal annual yield to maturity is 7.00%. They pay interest semiannually, and sell at a price of $875. What is the bond's nominal coupon interest rate? Your answer should be between 4.25 and 9.10, rounded to 2 decimal places, with no special characters.
O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their...
O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $850. What is the bond's nominal (annual) coupon interest rate? 6.27% 6.60% 6.95% 7.32% 7.70%
O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their...
O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal yield to maturity is 9.25%, they pay interest semiannually, and they sell at $975. What is the bond's nominal coupon interest rate? Please show all work, without excel
O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 20 years. Their...
O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 20 years. Their nominal yield to maturity is 8.50%, they pay interest semiannually, and they sell at a price of $825. What is the bond's nominal (annual) coupon interest rate? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.
O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 20 years. Their...
O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 20 years. Their nominal yield to maturity is 8.75%, they pay interest semiannually, and they sell at a price of $800. What is the bond's nominal (annual) coupon interest rate? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.
13. A company’s bonds have a $1,000 par value, and mature in 25 years. Their nominal...
13. A company’s bonds have a $1,000 par value, and mature in 25 years. Their nominal yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $850. What is the bond’s nominal (annual) coupon rate?
Field Industries' outstanding bonds have a 25-year maturity and $1,000 par value. Their nominal yield to...
Field Industries' outstanding bonds have a 25-year maturity and $1,000 par value. Their nominal yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $1,075. What is the bond's nominal (annual) coupon interest rate? Select the correct answer. a. 9.86% b. 9.70% c. 10.18% d. 10.02% e. 10.34%
Marin Company's bonds mature in 8 years, have a par value of $1,000, and make an...
Marin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 5.20% on these bonds. What is the bond's price? Your answer should be between 1000.00 and 1120.00, rounded to 2 decimal places, with no special characters.
Marin Company's bonds mature in 8 years, have a par value of $1,000, and make an...
Marin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 5.40% on these bonds. What is the bond's price? Your answer should be between 1000.00 and 1120.00, rounded to 2 decimal places, with no special characters.
Micron Technology's bonds currently sell for $1,280 and have a par value of $1,000. They pay...
Micron Technology's bonds currently sell for $1,280 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100. What is their yield to call (YTC)? Your answer should be between 4.56 and 8.32, rounded to 2 decimal places, with no special characters, D Question 10 5 pts Eagle Industries' bonds have a 10-year maturity and a 7.60% coupon paid semiannually. They sell at...
Garrett Company's outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal annual yield to maturity is 7.00%. They pay interest semiannually, and sell at a price of $875. What is the bond's nominal coupon interest rate? Your answer should be between 4.25 and 9.10, rounded to 2 decimal places, with no special characters.
Marin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 5.20% on these bonds. What is the bond's price? Your answer should be between 1000.00 and 1120.00, rounded to 2 decimal places, with no special characters.
Marin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 5.40% on these bonds. What is the bond's price? Your answer should be between 1000.00 and 1120.00, rounded to 2 decimal places, with no special characters.
Micron Technology's bonds currently sell for $1,280 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100. What is their yield to call (YTC)? Your answer should be between 4.56 and 8.32, rounded to 2 decimal places, with no special characters, D Question 10 5 pts Eagle Industries' bonds have a 10-year maturity and a 7.60% coupon paid semiannually. They sell at...
Most questions answered within 3 hours.
-
Explain some different types of fungi. State the different
divisions undergo by fungi.
asked 11 minutes ago -
The shortest time that 120 C can flow through a 20 A circuit
breaker without tripping...
asked 12 minutes ago -
A software design pattern is a general, reusable solution to a
commonly occurring problem, acting as...
asked 14 minutes ago -
The mean waiting time at the drive-through of a fast-food
restaurant from the time an order...
asked 31 minutes ago -
The pitch (p) of a helix is defined as p = dn, in which n is...
asked 33 minutes ago -
Do you agree that the declining stock of social capital is the
blame for the failure...
asked 37 minutes ago -
A researcher is interested in whether coffee consumption helps
with performance on reading comprehension tasks. The...
asked 46 minutes ago -
it has been estimated since the beginning of the human race that
about 133 metric ton...
asked 52 minutes ago -
Where must Medicare prescription drug plans allow for
participants to fill their prescriptions?
asked 55 minutes ago -
Five moles of monatomic ideal gas have initial pressure 2.50 ×
103 Pa and initial volume...
asked 1 hour ago -
A resistor and the capacitor are used to control the timing in
the RC circuit of...
asked 1 hour ago -
Living in a group could bring several disadvantages to an
individual. What are some of the...
asked 1 hour ago