Maroon Two Inc. would like to issue 10,000 coupon bonds with face value of $1,000, coupon rate of 9%, semi-annual coupon payment, and maturity of 10 years. Bonds in the market with similar maturity and risk-level are currently selling for $985. What will be the yield to maturity on Maroon Two bonds?
Maroon Two Inc. would like to issue 10,000 coupon bonds with face value of $1,000, coupon...
DMC Inc. is planning to issue a $1,000 face-value bond with an annual coupon rate of 10% that matures in 20 years. DMC is planning to pay semi-annual interest payments. Similar DMC bonds are quoting at 95% of par. What is yield to maturity for this bond? 5.3% 11.2% 7.5% 10.6% None of the above
ABC Ltd is planning to issue 16-year semi-annual coupon bonds with a face value of $1,000 and a coupon rate of 6.5%. The nominal yield to maturity of potential investors is estimated to be 7.6% per annum. Calculate the required number (expressed as an integer) of semi-annual coupon bonds to be issued if the firm aims to raise $15 million. (3 marks)
Springfield Nuclear Energy Inc. bonds are currently trading at $1291.39, The bonds have a face value of $1,000 a coupon rate of 10.5% with coupons paid annually, and they mature in 15years. What is the yield to maturity of the bonds? The yield to maturity of the bonds is ____ beam inc. bonds are trading today for a price of $798.96. the bond pays annual coupons with a coupon rate of 6% and the next coupon is due in one...
1. A firm has a bond issue with face value of $1,000, 8% coupon rate, and eight years to maturity. The bond makes coupon payments every six months, and is currently priced at $1,055.85. What is the yield to maturity on this bond? Select one: a. 3.54% b. 6.95% c. 7.07% d. 7.49% e. 14.99% 2. What is the duration of a five-year bond with coupon rate of 8%, yield to maturity of 6%, semi-annual coupon payment, and face value...
A bond has a face value of $1,000. The coupon rate is 7.2% (expressed as an annual percentage rate with semi-annual compounding). There are 2 coupon payments per year and the bond will mature in 4 years. The price is $985. A coupon payment has just been made and the next coupon payment for this bond is in 6 months. An investor buys the bond today and sells the bond in 2 years’ time, just after a coupon payment. When...
36 Yes They May, Inc. has a bond issue outstanding with a $1,000 par value and a maturity of 23 years. The bonds have an annual coupon rate of 18.0% with semi-annual coupon payments. The current market price for the bonds is $845. The bonds may be called in 3 years for 118.0% of par. What is the quoted annual yield-to-maturity for the bonds? 10.67% 21.34% 23.87% 30.32% 38.91%
need answers for 13 and 14 Question 13 (4 points) XZYY, Inc. currently has an issue of bonds outstanding that will mature in 24 years. The bonds have a face value of $1,000 and a stated annual coupon rate of 15% with semi-annual coupon payments. The bond is currently selling for $856. The bonds may be called in 3 years for 117% of par value. What is the quoted annual yield-to- maturity for these bonds? 26.30% 8.79% 19.25% 17.58% 34.44%...
Ten years ago, Simply Splendid Corp. issued 40 year bonds with a $1,000 face value and a 7 percent coupon rate, paid semiannually. Bond of this risk currently have a yield to maturity of 9 percent. How much would you expect to pay for one of these bonds today? Harley Group has outstanding $1,000 face value bonds that have a 6.5 percent coupon rate, paid semiannually, and mature in 18 years. They are currently selling for $935.15. What is their...
Tyson Corporation has an outstanding issue of 25-year maturity corporate bond with face value of $1,000 and a coupon of 4%, paying coupon interest semi-annually. If the market rate of interest (YTM) is 6% on similar risk bonds, at what price would this bond trade in the market.
Susan's Lemonade, Inc. has a single issue of bonds. The bonds have a face value of $1000, a coupon rate of 5.25% with coupons paid semi-annually, a time to maturity of 2 years, and a current market price of $985.04. The firm is financed with 35% debt and 65% common stock. The firm's common stock has a beta of 1.3. The risk-free rate is 1.56%. The expected return on the market portfolio is 9.6%. The corporate tax rate is 30%....