Question

Question 15 (4 points) XZYY, Inc. currently has an issue of bonds outstanding that will mature in 24 years. The bonds have a
0 0
Add a comment Improve this question Transcribed image text
Answer #1

The yield to call is calculated using the RATE function:-

=RATE(nper,pmt,pv,fv)

=RATE(6*2,20%/2*1000,-857,1240)*2

=26.74%

Add a comment
Know the answer?
Add Answer to:
Question 15 (4 points) XZYY, Inc. currently has an issue of bonds outstanding that will mature...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

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
  • 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...

  • 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%...

  • need help with question 3 and 4 please. Question 3 (2 points) You are considering buying bonds in ACBB, Inc. The bon...

    need help with question 3 and 4 please. Question 3 (2 points) You are considering buying bonds in ACBB, Inc. The bonds have a par value of $1,000 and mature in 18 years. The annual coupon rate is 20.0% and the coupon payments are annual. If you believe that the appropriate discount rate for the bonds is 19.0%, what is the value of the bonds to you? $1,241.60 $1,050.33 $951.88 $1,134.74 $1,155.53 Question 4 (2 points) XZYY, Inc. currently has...

  • 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...

  • 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%

  • New Markets has $1,000 face value bonds outstanding that pay interest semiannually, mature in 14.5 years,...

    New Markets has $1,000 face value bonds outstanding that pay interest semiannually, mature in 14.5 years, and have a 4.5 percent coupon. The current price is quoted at 97.6% of par. What is the yield to maturity?

  • Carla Vista, Inc., has bonds outstanding that will mature in 8 years. The bonds have a...

    Carla Vista, Inc., has bonds outstanding that will mature in 8 years. The bonds have a face value of $1,000. These bonds pay interest semiannually and have a coupon rate of 4.6 percent. If the bonds are currently selling at $895.92, what is the yield to maturity that an investor who buys them today can expect to earn? (Round answer to 3 decimal place, e.g. 5.275%.) Yield to maturity%? What is the effective annual yield? (Round answer to 3 decimal...

  • Waterway, Inc., has bonds outstanding that will mature in 8 years. The bonds have a face...

    Waterway, Inc., has bonds outstanding that will mature in 8 years. The bonds have a face value of $1,000. These bonds pay interest semiannually and have a coupon rate of 4.6 percent. If the bonds are currently selling at $901.92, what is the yield to maturity that an investor who buys them today can expect to earn? (Round answer to 1 decimal place, e.g. 5.2%.) Yield to maturity Entry field with incorrect answer % What is the effective annual yield?...

  • 1) New Markets has $1,000 face value bonds outstanding that pay interest semiannually, mature in 20...

    1) New Markets has $1,000 face value bonds outstanding that pay interest semiannually, mature in 20 years, and have a 5.8 percent coupon. The current price is quoted at 103.25. What is the yield to maturity? 2)   American Hat has $1,000 face value bonds outstanding with a market price of $1,150. The bonds pay interest semiannually, mature in 8 years, and have a yield to maturity of 5.98 percent. What is the current yield? Please explain with simple formula

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