ZuoTi.Pro
Question

36 Yes They May, Inc. has a bond issue outstanding with a $1,000 par value and...

36

Yes They May, Inc. has a bond issue outstanding with a $1,000 par value and a maturity of 23 years. The bonds have an annual coupon rate of 18.0% with semi-annual coupon payments. The current market price for the bonds is $845. The bonds may be called in 3 years for 118.0% of par. What is the quoted annual yield-to-maturity for the bonds?

10.67%
21.34%
23.87%
30.32%
38.91%
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Calculate the yield to maturity as follows fr :RATE(3*2,-1000*18%/2,845,-1000*118%) Function Arguments RATE 3*2 -1000* 18%/2 Nper 90 845 Pmt Pv 845 Fv -1000*118% Dial = -1180 Type number 0.15161394 Returns the interest rate per period of a loan or an investment. For example, use 6%/4 for quarterly payments at 6% APR. Fv is the future value, or a cash balance you want to attain after the last payment is made. If omitted, uses Fv = 0 Formula result 0.15161394 OK Cancel Therefore, semiannual yield to maturity is 1 516 14% Therefore, annual veild to maturity is 15.1614%*2 30.3200

0 0
Add a comment
Know the answer?
Add Answer to:
36 Yes They May, Inc. has a bond issue outstanding with a $1,000 par value and...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • BridgeWater Inc. has a bond issue outstanding with a $1,000 par value and a maturity of...

    BridgeWater Inc. has a bond issue outstanding with a $1,000 par value and a maturity of 20 years. The bonds have an annual coupon rate of 6.0% with quarterly coupon payments. The current market price for the bonds is $895. The bonds may be called in 3 years for 120% of par. a) What is the quoted annual yield-to-maturity for the bonds? b) What is the quoted annual yield-to-call for the bonds?

  • the top two are together Bridge Water Inc. has a bond issue outstanding with a $1,000...

    the top two are together Bridge Water Inc. has a bond issue outstanding with a $1,000 par value and a maturity of 20 years. The bonds have an annual coupon rate of 6.0% with quarterly coupon payments. a) What is the quoted annual yield-to-maturity for the bonds? b) What is the quoted annual yield-to-call for the bonds? The bonds have an annual coupon rate of 6.0% with quarterly coupon payments. The current market price for the bonds is $895. The...

  • need answers for 13 and 14 Question 13 (4 points) XZYY, Inc. currently has an issue...

    need answers for 13 and 14 Question 13 (4 points) XZYY, Inc. currently has an issue of bonds outstanding that will mature in 24 years. The bonds have a face value of $1,000 and a stated annual coupon rate of 15% with semi-annual coupon payments. The bond is currently selling for $856. The bonds may be called in 3 years for 117% of par value. What is the quoted annual yield-to- maturity for these bonds? 26.30% 8.79% 19.25% 17.58% 34.44%...

  • Question 15 (4 points) XZYY, Inc. currently has an issue of bonds outstanding that will mature...

    Question 15 (4 points) XZYY, Inc. currently has an issue of bonds outstanding that will mature in 24 years. The bonds have a face value of $1,000 and a stated annual coupon rate of 20% with semi-annual coupon payments. The bond is currently selling for $857. The bonds may be called in 6 years for 124% of par value. What is the quoted annual yield-to- call for these bonds assuming the company calls the bonds as soon as possible? O...

  • Within Year, Inc. has bonds outstanding with a $1,000 par value and a maturity of 18...

    Within Year, Inc. has bonds outstanding with a $1,000 par value and a maturity of 18 years. The bonds have an annual coupon rate of 17.0% with semi-annual coupon payments. You would expect a quoted annual return of 10.0% if you purchased these bonds. What are the bonds worth to you? Question 12 options: $610.07 $1,649.46 $1,579.14 $1,409.14 $2,985.62

  • need help with question 14 and 15 Question 14 (4 points) XZYY, Inc. currently has an...

    need help with question 14 and 15 Question 14 (4 points) XZYY, Inc. currently has an issue of bonds outstanding that will mature in 17 years. The bonds have a face value of $1,000 and a stated annual coupon rate of 14% with annual coupon payments. The bond is currently selling for $1167. The bonds may be called in 3 years for 116% of par value. What is your expected quoted annual rate of return if you buy the bonds...

  • DMC Inc. is planning to issue a $1,000 face-value bond with an annual coupon rate of...

    DMC Inc. is planning to issue a $1,000 face-value bond with an annual coupon rate of 10% that matures in 20 years. DMC is planning to pay semi-annual interest payments. Similar DMC bonds are quoting at 95% of par. What is yield to maturity for this bond? 5.3% 11.2% 7.5% 10.6% None of the above

  • Question 19 (3.5 points) Within Year, Inc. has bonds outstanding with a $1,000 par value and...

    Question 19 (3.5 points) Within Year, Inc. has bonds outstanding with a $1,000 par value and a maturity of 28 years. The bonds have an annual coupon rate of 12.0% with quarterly coupon payments. You would expect a quoted annual return of 13.0% if you purchased these bonds. What are the bonds worth to you? O $954.38 O $925.22 $1,080.29 O $954.49 $3,617.42

  • A 20 year, 8% semi-annual coupon bond with a par value of $1,000 may be called...

    A 20 year, 8% semi-annual coupon bond with a par value of $1,000 may be called in 10 years at a call price of $1,100. The bond sells for $1,200. e. How would the price of the bond be affected by a change in the going market interest rates? Please show work ( by adding numbers or CELL with formula if needed). Thank you, will rate. L M N I e a A 20 year, 8% semi-annual coupon bond with...

  • A bond has a par value of $1,000, a current yield of 8.15 percent, and semiannual coupon payments. The bond is quoted at 103.51. What is the coupon rate of the bond?

    1. A bond has a par value of $1,000, a current yield of 8.15 percent, and semiannual coupon payments. The bond is quoted at 103.51. What is the coupon rate of the bond?2. Kasey Corp. has a bond outstanding with a coupon rate of 5.94 percent and semiannual payments. The bond has a yield to maturity of 5.1 percent, a par value of $2,000, and matures in 20 years. What is the quoted price of the bond?3. A bond with...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT