3) Par Value =1000
Coupon =20%*1000 =200
Rate =19%
Number of Periods =18
Price of bond =PV of Coupons+PV of par Value
=200*((1-(1+19%)^-18)/19%)+1000/(1+19%)^18 =1050.33 (Option b is
correct option)
4. Number of Periods =27
Face Value =1000
Coupon =20%*1000 =200
Price =1141
Annual rate of Return using rate function of excel
=RATE(27,200,-1141,1000) =17.50%
need help with question 3 and 4 please. Question 3 (2 points) You are considering buying bonds in ACBB, Inc. The bon...
need answers for question 11 and 12 Question 11 (4 points) You are considering buying bonds in ACBB, Inc. The bonds have a par value of $1,000 and mature in 25 years. The annual coupon rate is 18.0% and the coupon payments are annual. If you believe that the appropriate discount rate for the bonds is 9.0%, what is the value of the bonds to you? $507.98 $2043.16 $1884.03 $596.54 $1971.55 Question 12 (4 points) You are considering buying bonds...
35 You are considering buying bonds in ACBB, Inc. The bonds have a par value of $1,000 and mature in 35 years. The annual coupon rate is 20.0% and the coupon payments are annual. If you believe that the appropriate discount rate for the bonds is 17.0%, what is the value of the bonds to you? $1,374.92 $1,175.75 $850.25 $1,019.97 $1,285.29
34 You are considering buying bonds in ACBB, Inc. The bonds have a par value of $1,000 and mature in 15 years. The annual coupon rate is 13.0% and the coupon payments are annual. If you believe that the appropriate discount rate for the bonds is 18.0%, what is the value of the bonds to you? $864.56 $745.42 $1,323.12 $1,474.34 $810.95
need help with question 14 and 15 Question 14 (4 points) XZYY, Inc. currently has an issue of bonds outstanding that will mature in 17 years. The bonds have a face value of $1,000 and a stated annual coupon rate of 14% with annual coupon payments. The bond is currently selling for $1167. The bonds may be called in 3 years for 116% of par value. What is your expected quoted annual rate of return if you buy the bonds...
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%...
need help with question 5 and 6 please. Question 5 (2 points) Again, Inc, bonds have a par value of $1,000, a 32 year maturity, and an annual coupon rate of 12.0% with annual coupon payments. The bonds are currently selling for $862. The bonds may be called in 6 years for 112.0% of par. What quoted annual rate of return do you expect to earn if you buy the bonds and company calls them when possible? 14.24% 13.96% 18.86%...
Question 15 (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 20% with semi-annual coupon payments. The bond is currently selling for $857. The bonds may be called in 6 years for 124% of par value. What is the quoted annual yield-to- call for these bonds assuming the company calls the bonds as soon as possible? O...
Question 20 Unsaved Again, Inc. bonds have a par value of $1,000, a 38 year maturity, and an annual coupon rate of 19.0% with annual coupon payments. The bonds are currently selling for $1,193. The bonds may be called in 4 years for 119.0% of par. What quoted annual rate of return do you expect to earn if you buy the bonds and company calls them when possible?
Question 19 (3.5 points) Within Year, Inc. has bonds outstanding with a $1,000 par value and a maturity of 28 years. The bonds have an annual coupon rate of 12.0% with quarterly coupon payments. You would expect a quoted annual return of 13.0% if you purchased these bonds. What are the bonds worth to you? O $954.38 O $925.22 $1,080.29 O $954.49 $3,617.42
37 Again, Inc. bonds have a par value of $1,000, a 25 year maturity, and an annual coupon rate of 8.0% with annual coupon payments. The bonds are currently selling for $868. The bonds may be called in 6 years for 108.0% of par. What quoted annual rate of return do you expect to earn if you buy the bonds and company calls them when possible? 9.39% 12.21% 13.42% 10.13% 8.30%