Face Value = $2,500,000
Interest Rate = 6.80%
Time Period = 8 years
Amount Received = 2,500,000/(1.068)8
Amount Received = $1,476,964
Question 11 10 points Save Answer Confederation Inc just issued $2.5 million zero coupon bonds due...
Mail Express, Inc. just issued 150,000 zero coupon bonds. These bonds mature in 25 years, have a par value of $1,000, and have a yield to maturity of 6.75 percent. What is the approximate total amount of money the company raised from issuing these bonds?
Boomer Inc, just issued 11-year bonds with $1,000 par and a 4.25% semi-annual coupon priced at $1080. If the yield to maturity stays constant, what will be the price of the bonds in 4 years?
1-Concordant Inc. wants to raise $50 million by issuing 10-year zero-coupon bonds with a yield to maturity (EAR) of 7.6%. What should be the total face value of the bonds (in $ million)? 2- Treasury spot interest rates are as follows: Maturity (years) 1 2 3 4 Spot rate (EAR) 2.1% 2.8% 3% 4.5% What is the price of a risk-free zero-coupon bond with 3 years to maturity and a face value of $1,000 (in $)?
The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of face value): Maturity (years) Price (per $100 face value) | 1 | 2 | 3 | 4 | 5 94.52 89.68 85.40 81.65 78.35 The yield to maturity for the four-year zero-coupon bond is closest to _ a 0.18% Ob. 10.40% Oc. 2.60% Od. 22.47% Oe.5.20%
Ace Industrial Machines issued 175,000 zero coupon bonds 8 years ago. The bonds originally had 30 years to maturity with a yield to maturity of 6.4 percent. Interest rates have recently decreased, and the bonds now have a yield to maturity of 5.5 percent. The bonds have a par value of $2,000. If the company has a $85.8 million market value of equity, what weight should it use for debt when calculating the cost of capital? (Do not round intermediate...
Ace Industrial Machines issued 175,000 zero coupon bonds 8 years ago. The bonds originally had 30 years to maturity with a yield to maturity of 6.4 percent. Interest rates have recently decreased, and the bonds now have a yield to maturity of 5.5 percent. The bonds have a par value of $2,000. If the company has a $85.8 million market value of equity, what weight should it use for debt when calculating the cost of capital? (Do not round intermediate...
Ace Industrial Machines issued 185,000 zero coupon bonds 8 years ago. The bonds originally had 30 years to maturity with a yield to maturity of 6.5 percent. Interest rates have recently decreased, and the bonds now have a yield to maturity of 5.6 percent. The bonds have a par value of $2,000. If the company has a $87.4 million market value of equity, what weight should it use for debt when calculating the cost of capital? (Do not round intermediate...
Ace Industrial Machines issued 185,000 zero coupon bonds 8 years ago. The bonds originally had 30 years to maturity with a yield to maturity of 6.5 percent. Interest rates have recently decreased, and the bonds now have a yield to maturity of 5.6 percent. The bonds have a par value of $2,000. If the company has a $87.4 million market value of equity, what weight should it use for debt when calculating the cost of capital? (Do not round intermediate...
Ace Industrial Machines issued 120,000 zero coupon bonds 8 years ago. The bonds originally had 30 years to maturity with a yield to maturity of 6 percent. Interest rates have recently decreased, and the bonds now have a yield to maturity of 5.1 percent. The bonds have a par value of $2,000. If the company has a $77 million market value of equity, what weight should it use for debt when calculating the cost of capital? (Do not round intermediate...
Ace Industrial Machines issued 140,000 zero coupon bonds 6 years ago. The bonds originally had 30 years to maturity with a yield to maturity of 6.2 percent. Interest rates have recently decreased, and the bonds now have a yield to maturity of 5.3 percent. The bonds have a par value of $2,000. If the company has a $80.2 million market value of equity, what weight should it use for debt when calculating the cost of capital?