New Homes has a bond issue with a coupon rate of 7.45 percent that matures in 11.5 years. The bonds have a face value of $1,000 and a market price of $1,095.67. Interest is paid semiannually. What is the yield to maturity? A. 6.27 percent B. 3.48 percent C. 3.13 percent D. 6.96 percent
Answer 6.27%
New Homes has a bond issue with a coupon rate of 7.45 percent that matures in...
4. Beautiful New Homes, Inc., has a bond issue with a coupon rate of 5.5 percent that matures in 8.5 years. The bonds have a par value of $1,000 and a market price of $945. Interest is paid semiannually. The yield to maturity on bonds of comparable risk have yields to maturity of 5.5%. Is this bond a good investment? A. No, because the bond is worth less than the price. B. No, because the bond's yield to maturity is...
Beautiful New Homes, Inc., has a bond issue with a coupon rate of 5.5 percent that matures in 8.5 years. The bonds have a par value of $1,000 and a market price of $945. Interest is paid semiannually. The yield to maturity on bonds of comparable risk have yields to maturity of 5.5%. Is this bond a good investment? A. No, because the bond is worth less than the price. B. No, because the bond's yield to maturity is less...
Roca Corporation has an outstanding bond with a coupon rate of 8.0 percent that matures in 10 years. The bond pays interest semiannually. What is the market price of one $1,000 face value bond if the yield to maturity is 6.0 percent? $1,039 $1,098 $993 $1,109 $1,149
Roca Corporation has an outstanding bond with a coupon rate of 8.0 percent that matures in 10 years. The bond pays interest semiannually. What is the market price of one $1,000 face value bond if the yield to maturity is 6.0 percent? $1,109 $1,098 $1,039 $1,149 $993
The MJ Corp has a 6 percent coupon bond outstanding that matures in 10.5 years. The bond pays interest semiannually. What is the market price if the face value is $1,000 and the yield to maturity is 12.62%?
Mundo Industries, Inc. has a bond issue outstanding with a coupon of 7.0 percent that matures in 10 years. The bond is currently priced at $940 and has a par value of $1,000. Interest is paid semiannually. What is the yield to maturity? 8.43% 7.88% 8.93% 6.11% 7.14%
1) A $1,000 face value bond currently has a yield to maturity of 6.03 percent. The bond matures in thirteen years and pays interest semiannually. The coupon rate is 6.25 percent. What is the current price of this bond? 2) The $1,000 face value bonds of Galaxies International have coupon of 5.5 percent and pay interest semiannually. Currently, the bonds are quoted at 98.02 and mature in 12 years. What is the yield to maturity? 3) Variance Logistics wants to...
Roadside Markets has a 6.75 percent coupon bond outstanding that matures in 6 years. The bond pays interest semiannually. What is the market price per bond if the face value is $1,000 and the yield to maturity is 7.70 percent? A. $1,046 B. $955 C. $899 D. $983
1. A corporate bond has a 12 percent coupon, pays interest semiannually, and matures in 10 years at $1,000. If the investor's required rate of return is 14 percent, what should the current market price of the bonds be? 2. North Pole Air has an issue of preferred stock outstanding that pays dividends of $8.50 annually. The par value of each preferred share is $100. Investors require a 12.25 percent rate of return on this stock. The next annual dividend...
1. A corporate bond has a 12 percent coupon, pays interest semiannually, and matures in 10 years at $1,000. If the investor's required rate of return is 14 percent, what should the current market price of the bonds be? 2. North Pole Air has an issue of preferred stock outstanding that pays dividends of $8.50 annually. The par value of each preferred share is $100. Investors require a 12.25 percent rate of return on this stock. The next annual dividend...