1. In january 2016, Anheuser-Busch issued an outstanding bond
that pays at a 3.3% coupon rate, matures in january 2023, and has a
yield maturity of 2.82%. In January 2017, Santander Holdings issued
an outstanding bond that pays a 3.571% coupon rate, matures in
january 2023, and has a yield maturity of 3.341%
a. Does the Anheuser-Busch bond sell at premium, par, or discount?
How do you Know? How about Santander bond?
b. Which bond would you guess has a higher rating? Why?
C. Can you draw any conclusion about the shape of the yield curve,
either now or when these bonds were first issued, from the
information given in the problem? why or why not?
1. In january 2016, Anheuser-Busch issued an outstanding bond that pays at a 3.3% coupon rate,...
Anheuser-Busch has issued a bond with the following characteristics: maturity: 16 years, coupon rate: 6.6% (paid semi-annually), face value: $1000. Your investment advisor told you that the yield-to-maturity on this bond is 5.3=%. What should be the price of this bond?
QUESTION 7 Anheuser-Busch has issued a bond with the following characteristics: maturity: 20 vears, coupon rate: 7.2% (paid semi-annually), face value: $1000. Your investment advisor has told you that the yield-to-maturity on this bond is 7.3%. What should be the price of this bond
1. We have the following information for Anheuser-Busch Companies, Inc Company Beta Market Market Bond Value Value Rating of of Debt Equity 40605 5375 Anheuser-0.5 Busch Assuming no tax is paid. Furthermore, we have the following economy-wide information Government Bond yields 10-year 4.5% Bond yield spreads (ie. bond yield -risk free rate) for A+ rating 10-year 1.00% Assume that the expected return on the S&P 500 is 10%. Estimate Anheuser-Busch's WACC using this information. 2. Identical Twin Beer, Co. has...
The HUANG Company currently has one bond issue outstanding. This bond pays a coupon rate of 8% ($80 per year) and matures in six years, and has a par value of $1,000. If you require a 14% rate of return, What is the current yield (not yield )of this bond in the first year? a. 10.080% b.11.012% c.11.061% d.10.435% e.11.096%
2. A coupon bond pays annual int coupon rate of 10%, and has a yield to maturity of annual interest, has a par value of $1.000, matures in 4 years, has a ed to maturity of 12%. The current yield on this bond is a. 10.52% b. 10.45% c. 10.95% d. 10.65% e. none of the above 3. A coupon bond that pays interest annually is selling op and has a coupon rate of 9%. The yield to maturity on...
Roadside Markets has a 6.75% coupon bond outstanding that matures in 10.5 years. The bond pays interest semiannually. What is the market price per bond if the face value is $1000 and the yield to maturity is 7.6%? 8,
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
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O The mo company currently has one bond issue outstanding. This bond pays a coupon rate of 10% ($100 peryear) and matures in five years, and has a par value of $1,000. If your require a 15% rate of return, What is the capital gains yield of this bond in the first year? (Assuming this is an semi-annual bond 2,986% 3.038% 3.986% 2.038% annat it does