What is the cost of debt when bonds incur a $25 charge and have a par...
What is the cost of debt when bonds incur a $25 charge and have a par value of $1000, a price of $900, a coupon rate of 4.5% and a maturity of 10 years?
Please show formula and work
It doesn't say but I guess assume annual coupons
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i have used YTM approximation formula as nothing is
mentioned
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What is the cost of debt when bonds incur a $25 charge and have
a par...
What is the cost of debt when bonds incur a $25 charge and have a par value of $1000, a price of $900, a coupon rate of...
What is the cost of debt when bonds incur a $25 charge and have a par value of $1000, a price of $900, a coupon rate of 4.5% and a maturity of 10 years? Please show formula and work
All of the bonds listed below are $1000 par bonds. To keep things simple, assume all...
All of the bonds listed below are $1000 par bonds. To keep things simple, assume all are annual coupon bonds. In the table see bonds of maturity 1 through 4, with their prices and coupons (in percent) listed. (Remember prices are presented as a percentage of par.) I want you to find each bond's yield to maturity. That should be easy. But I also want you to bootstrap the zero coupon yield curve. That is, find the four zero-coupon yields...
"What is the WACC for the following company? Debt: 15,000 bonds with a par value of...
"What is the WACC for the following company? Debt: 15,000 bonds with a par value of $1,000 and a quoted price of 113.25. The bonds have coupon rate of 4.7 percent and 15 years to maturity. 20,000 zero coupon bonds with a par value of $10,000, a quoted price of 30.45, and 28 years to maturity. Common Stock: 1,550,000 shares of stock selling at a market price of $105. The beta for the stock is 1.25. The company just paid...
Croft Inc, bonds have a par value of $1000. The bonds have a 4% coupon rate...
Croft Inc, bonds have a par value of $1000. The bonds have a 4% coupon rate and will mature in 10 years. Assume the bond is semi-annual. A) calculate the price if the yield to maturity on the bonds is 7, 8 and 9 percent respectively. B) Explain the impact on price if the required rate of return decreases.
DIQDODOM (9 of 10) XYZ bonds sell for $900. They have a $1,000 par value, 8%...
DIQDODOM (9 of 10) XYZ bonds sell for $900. They have a $1,000 par value, 8% coupon rate with semiannual coupons, and 8 years to maturity, What is the pre-tax cost of debt? 9.83% 5.14% 4.92% 5.58% SKIP QUESTION IAM FINISHED/SUBMIT FOR GRADE
PROBLEM 11 A/ Your company currently has $ 1000 par, 5.25 % coupon bonds with 10...
PROBLEM 11 A/ Your company currently has $ 1000 par, 5.25 % coupon bonds with 10 years to maturity and a price of $ 1078. If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to set? Assume that for both bonds, the next coupon payment is due in exactly six months. You need to set a coupon rate of %. (Round to two decimal places.) B/ Suppose that General Motors Acceptance Corporation...
37 Again, Inc. bonds have a par value of $1,000, a 25 year maturity, and an...
37 Again, Inc. bonds have a par value of $1,000, a 25 year maturity, and an annual coupon rate of 8.0% with annual coupon payments. The bonds are currently selling for $868. The bonds may be called in 6 years for 108.0% of par. What quoted annual rate of return do you expect to earn if you buy the bonds and company calls them when possible? 9.39% 12.21% 13.42% 10.13% 8.30%
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
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?
2) Southern Bell has issued $1000 par, 4.375% coupon bonds that mature in 6 years. The...
2) Southern Bell has issued $1000 par, 4.375% coupon bonds that mature in 6 years. The coupons on these bonds are paid semi-annually. These bonds are currently trading at a price of $853.75. The bonds are callable in 2 years at a call price of $1000. a) Compute the Yield-to-Maturity (YTM) on the bonds. b) Compute the Yield-to-Call (YTC) on the bonds.
All of the bonds listed below are $1000 par bonds. To keep things simple, assume all are annual coupon bonds. In the table see bonds of maturity 1 through 4, with their prices and coupons (in percent) listed. (Remember prices are presented as a percentage of par.) I want you to find each bond's yield to maturity. That should be easy. But I also want you to bootstrap the zero coupon yield curve. That is, find the four zero-coupon yields...
DIQDODOM (9 of 10) XYZ bonds sell for $900. They have a $1,000 par value, 8% coupon rate with semiannual coupons, and 8 years to maturity, What is the pre-tax cost of debt? 9.83% 5.14% 4.92% 5.58% SKIP QUESTION IAM FINISHED/SUBMIT FOR GRADE
PROBLEM 11 A/ Your company currently has $ 1000 par, 5.25 % coupon bonds with 10 years to maturity and a price of $ 1078. If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to set? Assume that for both bonds, the next coupon payment is due in exactly six months. You need to set a coupon rate of %. (Round to two decimal places.) B/ Suppose that General Motors Acceptance Corporation...
2) Southern Bell has issued $1000 par, 4.375% coupon bonds that mature in 6 years. The coupons on these bonds are paid semi-annually. These bonds are currently trading at a price of $853.75. The bonds are callable in 2 years at a call price of $1000. a) Compute the Yield-to-Maturity (YTM) on the bonds. b) Compute the Yield-to-Call (YTC) on the bonds.
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What is the NPV?
r=9.28
c1= 5.853
c2= 6.37 + 1,826.76
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