mstar electric has a bond issue outstanding that has a 20 year life, a $1,000 par...
mstar electric has a bond issue outstanding that has a 20 year life, a $1,000 par value and coupon rate of 4% per annum, paid semi-annually. The bonds are currently trading for $768.85. What is the yield to maturity on these bonds?
Homework Answers
Bond's yield to maturity is calculated using the RATE function:-
=RATE(nper,pmt,pv,fv)
=RATE(20*2,4%/2*1000,-768.85,1000)*2
=6.00%
Add Answer to:
mstar electric has a bond issue outstanding that has a 20 year
life, a $1,000 par...
36 Yes They May, Inc. has a bond issue outstanding with a $1,000 par value and...
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%
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?
Tyson Corporation has an outstanding issue of 25-year maturity corporate bond with face value of $1,000...
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.
the top two are together Bridge Water Inc. has a bond issue outstanding with a $1,000...
the
top two are together
Bridge Water 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. a) What is the quoted annual yield-to-maturity for the bonds? b) What is the quoted annual yield-to-call for the bonds? The bonds have an annual coupon rate of 6.0% with quarterly coupon payments. The current market price for the bonds is $895. The...
7. Paccione Corporation has a bond issue outstanding with 9 years to maturity, a coupon rate...
7. Paccione Corporation has a bond issue outstanding with 9 years to maturity, a coupon rate of 7.5 percent, and a $1,000 face value. The bonds pay coupons semi-annually. The bonds sell for $1,140. What is the yield to maturity on the bonds?
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...
Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with a 15% coupon...
Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with a 15% coupon interest rate. The issue pays interest annually and has 16 years remaining to its maturity date. a. If bonds of similar risk are currently earning a rate of return of 11%, how much should the Complex Systems bond sell for today? b. Describe the two possible reasons why the rate on similar-risk bonds is below the coupon interest rate on the Complex Systems bond....
Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with a 16% coupon...
Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with a 16% coupon interest rate. The issue pays interest annually and has 13 years remaining to its maturity date. a. If bonds of similar risk are currently earning a rate of return of 8%, how much should the Complex Systems bond sell for today? b. Describe the two possible reasons why the rate on similar-risk bonds is below the coupon interest rate on the Complex Systems bond....
JPR, Inc has one outstanding bond issue, which has seventeen years remaining to maturity and a...
JPR, Inc has one outstanding bond issue, which has seventeen years remaining to maturity and a coupon rate of 4.875%. Interest payments are made semi-annually, the firm’s tax rate is .40, and the bonds are currently trading at $928.00. a. What is the yield to maturity on the bonds? b. Ignoring flotation costs, what is the firm’s cost of debt (before tax)? c. What is its after-tax cost of debt?
Cost of Debt Jones, Inc has one outstanding bond issue, which has twelve years remaining to...
Cost of Debt Jones, Inc has one outstanding bond issue, which has twelve years remaining to maturity and a coupon rate of 2.325%. Interest payments are made semi-annually, the firm’s tax rate is .35, and the bonds are currently trading at $1,021.00. What is the yield to maturity on the bonds? Ignoring flotation costs, what is the firm’s cost of debt (before tax)? What is its after-tax cost of debt?
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?
the
top two are together
Bridge Water 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. a) What is the quoted annual yield-to-maturity for the bonds? b) What is the quoted annual yield-to-call for the bonds? The bonds have an annual coupon rate of 6.0% with quarterly coupon payments. The current market price for the bonds is $895. The...
Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with a 16% coupon interest rate. The issue pays interest annually and has 13 years remaining to its maturity date. a. If bonds of similar risk are currently earning a rate of return of 8%, how much should the Complex Systems bond sell for today? b. Describe the two possible reasons why the rate on similar-risk bonds is below the coupon interest rate on the Complex Systems bond....
Most questions answered within 3 hours.
-
Questions:(to
be answered within the video)
Write a C++ program
with the following specifications:
1.
Create...
asked 10 minutes ago -
A 7.55 g sample of an aqueous solution of
hydrochloric acid contains an unknown amount of...
asked 3 minutes ago -
Why would the following user group need accounting information
related to a business? Support your answers...
asked 5 minutes ago -
4. How much work is it to lift a 25 kg sack of cement vertically
4.3...
asked 6 minutes ago -
Write the mechanism for the reaction involving [emim][Br] and
lithium bis(trifluoromethylsulfonyl)imide.
asked 27 minutes ago -
The half life of a specific Tc-99m is 6 hours. How much of an
192 mg...
asked 35 minutes ago -
If you have 35.0g of Na and 100.0g of Cl2, what is the
maximum amount of...
asked 38 minutes ago -
Assume that adults have IQ scores that are normally distributed
with a mean of 96.8 and...
asked 37 minutes ago -
If a product or other segment of a business is generating a
loss, it is erroneous...
asked 41 minutes ago -
I need help writing c++ code to make this program.
1. Define a function that can...
asked 42 minutes ago -
Problem #5
A communications cable is 2.00 km long and consists of two
parallel wires separated...
asked 1 hour ago -
Cranium, Inc., purchases term papers from an overseas supplier
under a continuous review system. The average...
asked 4 hours ago