Variance Logistics wants to issue 20-year, zero-coupon bonds that yield 6.2 percent. What price should it charge for these bonds if the face value is $1,000? Assume semiannual compounding.
Value of bonds=Face value/(1+yield/2)^(2*time period)
=$1000/(1+0.062/2)^(2*20)
=$1000/(1.031)^40
=$1000*0.29488548
=$294.89(Approx).
Variance Logistics wants to issue 20-year, zero-coupon bonds that yield 6.2 percent. What price should it...
Arts and Crafts Warehouse wants to issue 15-year, zero coupon bonds that yield 7.5 percent. What price should it charge for these bonds if the face value is $1,000? (Assume semi-annual compounding.)
1) A $1,000 face value bond currently has a yield to maturity of 6.03 percent. The bond matures in thirteen years and pays interest semiannually. The coupon rate is 6.25 percent. What is the current price of this bond? 2) The $1,000 face value bonds of Galaxies International have coupon of 5.5 percent and pay interest semiannually. Currently, the bonds are quoted at 98.02 and mature in 12 years. What is the yield to maturity? 3) Variance Logistics wants to...
A.Zero Coupon Bonds A 7 year maturity zero coupon corporate bond has an 8% promised yield. The bond's price should equal B.The Fishing Pier has 6.40 percent, semi-annual bonds outstanding that mature in 12 years. The bonds have a face value of $1,000 and a market value of $1,027. What is the yield to maturity? C.Bond Yields Find the promised yield to maturity for a 7% coupon, $1,000 par 20 year bond selling at $1115.00. The bond makes semiannual coupon...
Your company wants to raise $8.5 million by issuing 20-year zero-coupon bonds. If the yield to maturity on the bonds will be 9% (annual compounded APR), what total face value amount of bonds must you issue? The total face value amount of bonds that you must issue is s (Round to the nearest cent.)
Oriole, INC., Management wants to raise $1 million by issuing six-year zero coupon bonds with a face value of $1,000. The comapn'ys investment banker states that investors would use an 9.0 percent discount rate to value such bonds. Assume semiannual coupon payments. At what price would these bonds sell (Round 2 dec) How many bonds would the firm have to issue to raise $1 million (round to 2 dec)
Navarro, Inc., plans to issue new zero coupon bonds with a par value of $1,000 to fund a new project. The bonds will have a YTM of 5.01 percent and mature in 25 years. If we assume semiannual compounding, at what price will the bonds sell?
Navarro, Inc., plans to issue new zero coupon bonds with a par value of $1,000 to fund a new project. The bonds will have a YTM of 5.61 percent and mature in 15 years. If we assume semiannual compounding, at what price will the bonds sell?
Crane, Inc., management wants to raise $1 million by issuing
six-year zero coupon bonds with a face value of $1,000. The
company’s investment banker states that investors would use an 9.1
percent discount rate to value such bonds. Assume semiannual coupon
payments.
At what price would these bonds sell in the marketplace?
(Round answer to 2 decimal places, e.g.
15.25)
Market rate
$
How many bonds would the firm have to issue to raise $1 million?
(Round answer to 0...
Navarro, Inc., plans to issue new zero coupon bonds with a par value of $1,000 to fund a new project. The bonds will have a YTM of 6.09 percent and mature in 15 years. If we assume semiannual compounding, at what price will the bonds sell? $406.62 $390.36 $411.99 $393.07 $396.46
You are purchasing a 14-year, zero-coupon bond. The yield to maturity is 5.94 percent and the face value is $1,000. What is the current market price? Assume semi-annual compounding. A. $463.87 B. $382.80 C. $390.77 D. $440.66