xam-2 One year tmnr wad LnkmannCo.ismed 15-year, tonlable,63%annual coupon bonds st their parul"ofsuoo. Today, t뇨 market...
One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 9.5% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity? Select the correct answer. a. $1,386.61 b. $1,392.65 c. $1,383.59 d. $1,389.63 e. $1,395.67
One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 6% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity? Select the correct answer. a. $1,047.95 b. $1,055.29 c. $1,062.63 d. $1,051.62 e. $1,058.96
One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 5% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity? Select the correct answer. a. $947.41 b. $952.05 c. $945.09 d. $954.37 e. $949.73
One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 6.2% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity? $__________ If 10-year T-bonds have a yield of 6.2%, 10-year corporate bonds yield 10.6%, the maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.4% liquidity premium versus...
Grossnickle Corporation issued 20-year, noncallable, 9.4% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 19 years to maturity? a. $1,714.18 b. $1,496.28 c. $1,452.70 d. $1,583.44 e. $1,539.86
The Corp. has issued 18-year, 8% semi-annual coupon, noncallable bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 4.5%. What is the current price of the bonds? (Hint: the bonds have 17 years to maturity now).
The Ally Food Corp. has issued 18-year, 8% semi-annual coupon, noncallable bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 4.5%. What is the current price of the bonds? (Hint: the bonds have 17 years to maturity now).
The Ally Food Corp. has issued 18-year, 8% semi-annual coupon, noncallable bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 4.5%. What is the current price of the bonds? (Hint: the bonds have 17 years to maturity now).
7. Currently, Bruner Inc.'s bonds sell for $1.250. They pay a S120 annual coupon, have a 15-year maturity, and a $1.000 pa value, but they can be called in 5 years at $1,050. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. What is the difference between this bond's YTM...
One year ago a company sold 10-year, $1,000 par value, annual coupon bonds at a price of $950.00 per bond. At that time the market rate was 8 percent a year. Today the market rate is 8.5 percent a year. At what price are the bonds currently selling?