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Dawgpound Incorporated has a bond trading on the secondary market that will mature in four years. The bond pays an annual coupon with a coupon rate of 5.00% and has a face value of $1,000.00. Based on the economy and risk associated with Dawgpound, you seek a 10.50% return on Dawgpound debt. What price are you willing to pay for the bond? Submit Answer format: Currency: Round to: 2 decimal places. An investor looks at today's yield to maturities in the Wall Street Journal for debt with 10 year maturities. He observes the following: Rating AAA AA А BBB BB YTM 4.49% 4.60% 4.75% 4.95% 5.15% Exxon Mobil (XON) has debt that is AAA rated. Suppose an investor wants to value Exxon bonds that will mature in 10- years. He sees one Exxon bond that pays a 7.875% annual coupon with a face value of $1,000. What should the bond trade for today? Submit Answer format: Currency: Round to: 2 decimal places.

Answer 1

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| 0 = a = 3 3 4 5 W v ( 23:50 ENG 10-02-20202 B068 BI BJ BK BL BM BN BO 1 DAWGPOUND ANNUAL COUPON BOND first of all set C/Y = P/Y = then N= 1/Y = PMT= FV = ANSWER CPT PV = 10.5 -50 (1000 X 5%] -1000 827.53 EXXON ANNUAL COUPON BOND first of all set C/Y = P/Y = then N= 1/Y = PMT= FV = CPT PV = 10 4.49 -78.75 [1000 X 7.875%] -1000 1267.98 ANSWER ... BOND PV FV Sheet4 choice EAR nper WACC Sheet1 Sheet2 Sheet3 Sheet5 HERO WACC AFN manual MIS ... :