ZuoTi.Pro
Question

Assume a par value of $1,000. Caspian Sea plans to issue a 19.00 year, annual pay...

Assume a par value of $1,000. Caspian Sea plans to issue a 19.00 year, annual pay bond that has a coupon rate of 8.14%. If the yield to maturity for the bond is 7.77%, what will the price of the bond be?

Assume a par value of $1,000. Caspian Sea plans to issue a 13.00 year, annual pay bond that has a coupon rate of 7.93%. If the yield to maturity for the bond is 8.26%, what will the price of the bond be?

Assume a par value of $1,000. Caspian Sea plans to issue a 26.00 year, annual pay bond that has a coupon rate of 10.00%. If the yield to maturity for the bond is 10.0%, what will the price of the bond be?

Caspian Sea Drinks needs to raise $27.00 million by issuing bonds. It plans to issue a 12.00 year semi-annual pay bond that has a coupon rate of 5.15%. The yield to maturity on the bond is expected to be 4.75%. How many bonds must Caspian Sea issue? (Note: Your answer may not be a whole number. In reality, a company would not issue part of a bond.)

Answer format: Currency: Round to: 2 decimal places.

I would really appreciate the help! :)

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

1)

Hence, Bond price is $1,036.13

*Please rate Thumbs up

0 0
Add a comment
Know the answer?
Add Answer to:
Assume a par value of $1,000. Caspian Sea plans to issue a 19.00 year, annual pay...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Assume a par value of $1,000. Caspian Sea plans to issue a 13.00 year, annual pay...

    Assume a par value of $1,000. Caspian Sea plans to issue a 13.00 year, annual pay bond that has a coupon rate of 7.93%. If the yield to maturity for the bond is 8.26%, what will the price of the bond be? Assume a par value of $1,000. Caspian Sea plans to issue a 26.00 year, annual pay bond that has a coupon rate of 10.00%. If the yield to maturity for the bond is 10.0%, what will the price...

  • Assume a par value of $1,000. Caspian Sea plans to issue a 7.00 year, semi-annual pay...

    Assume a par value of $1,000. Caspian Sea plans to issue a 7.00 year, semi-annual pay bond that has a coupon rate of 8.02%. If the yield to maturity for the bond is 7.66%, what will the price of the bond be?

  • Assume a par value of $1,000. Caspian Sea plans to issue a 20.00 year, semi-annual pay...

    Assume a par value of $1,000. Caspian Sea plans to issue a 20.00 year, semi-annual pay bond that has a coupon rate of 7.92%. If the yield to maturity for the bond is 8.41%, what will the price of the bond be?

  • #4 Assume a par value of $1,000. Caspian Sea plans to issue a 10.00 year, semi-annual...

    #4 Assume a par value of $1,000. Caspian Sea plans to issue a 10.00 year, semi-annual pay bond that has a coupon rate of 8.01%. If the yield to maturity for the bond is 7.71%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted #5 Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay bond that has a coupon rate of 7.92%. If...

  • unanswered not submitted Assume a par value of $1,000. Caspian Sea plans to issue a 17.00...

    unanswered not submitted Assume a par value of $1,000. Caspian Sea plans to issue a 17.00 year, semi-annual pay bond that has a coupon rate of 8.09%. If the yield to maturity for the bond is 7.72%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not submitted Assume a par value of $1,000. Caspian Sea plans to issue a 16.00 year, semi-annual pay bond that has a coupon rate of...

  • Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube...

    Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment, the RGM-7000, will allow Caspian Sea Drinks to expand production. It will cost $14.00 million fully installed and will be fully depreciated over a 20 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $3.04 million per year and increased operating costs of $507,343.00 per year. Caspian Sea Drinks' marginal tax rate is...

  • 22. Caspian Sea Drinks is considering the purchase of a new water filtration system produced by...

    22. Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment, the RGM-7000, will allow Caspian Sea Drinks to expand production. It will cost $14.00 million fully installed and will be fully depreciated over a 19.00 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $3.20 million per year and increased operating costs of $748,168.00 per year. Caspian Sea Drinks' marginal tax rate...

  • Pandora Media plans to issue original issue discount (OID) bonds with a 20-year maturity, $1,000 par...

    Pandora Media plans to issue original issue discount (OID) bonds with a 20-year maturity, $1,000 par value, and initial yield to maturity of 8%. Since these bonds are issued below par, the total yield will come from both annual coupon payments and appreciation. If the bonds are offered at a discounted price of $890, what is their nominal coupon rate? That is, at this price, what coupon rate will result in a yield to maturity of 8%? Your answer should...

  • BridgeWater Inc. has a bond issue outstanding with a $1,000 par value and a maturity of...

    BridgeWater Inc. has a bond issue outstanding with a $1,000 par value and a maturity of 20 years. The bonds have an annual coupon rate of 6.0% with quarterly coupon payments. The current market price for the bonds is $895. The bonds may be called in 3 years for 120% of par. a) What is the quoted annual yield-to-maturity for the bonds? b) What is the quoted annual yield-to-call for the bonds?

  • 5a FYI bonds have a par value of $1,000. The bonds pay an 8% annual coupon...

    5a FYI bonds have a par value of $1,000. The bonds pay an 8% annual coupon and will mature in 11 years. i) Calculate the price if the yield to maturity on the bonds is 7%, 8% and 9%, respectively. ii) What is the current yield on these bonds if the YTM on the bonds is 7%, 8% and 9%, respectively. Hint, you can only calculate current yield after you have determined the intrinsic value (price) of the bonds. iii)...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT