Interest Rate = 0.031 + 0.008
Interest Rate= 3.90%
Calculating Price of bond,
Using TVM Calculation,
PV = [FV= 100, PMT = 3.350, N = 4, I = 0.039/2]
PV = $105.34
please provide ste by step analysis 19. A firm issues two-year bonds with a coupon rate...
Your firm has a credit rating of A. You notice that the credit spread for five-year maturity A debt is 89 basis points(0.89 %). Your firm's five-year debt has an annual coupon rate of 6.2%.You see that new five-year Treasury notes are being issued at par with an annual coupon rate of 1.8%.What should be the price of your outstanding five-year bonds?
Your firm has a credit rating of A. You notice that the credit spread for five-year maturity A debt is 80 basis points (0.80%). Your firm's five-year debt has an annual coupon rate of 6.1% You see that new five-year Treasury notes are being issued at par with an annual coupon rate of 2.5% What should be the price of your outstanding five-year bonds?
Your firm has a credit rating of A. You notice that the credit spread for five-year maturity A debt is 8383 basis points left parenthesis 0.83 % right parenthesis(0.83%). Your firm's five-year debt has an annual coupon rate of 5.5 %5.5%. You see that new five-year Treasury notes are being issued at par with an annual coupon rate of 1.5 %1.5%. What should be the price of your outstanding five-year bonds?
Your firm has a credit rating of AA. You notice that the credit spread for 10-year maturity debt is 90 basis points (0.90%). Your firm's 10-year debt has a coupon rate of 5%. You see that new 10-year Treasury bonds are being issued at par with a coupon rate of 4.5%. What should be the price of your outstanding 10- bonds? уear
your firm has a credit rating of A. Notice that the credit spread for five years maturity is 83 basis point(0.83%) your firm's five year dept has an annual coupon rate of 6.3%. You see that new five year Treasury notes are being issued at par with an annual coupon rate of 2% what should be the price of your outstanding five year bonds?
3 Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.84 percent, a par value of $1,000 per bond, matures in 7 years, has a total face value of $5.3 million, and is quoted at 102 percent of face value. The second issue has a coupon rate of 6.61 percent, a par value of $1,000 per bond, matures in 16 years, has a total face value of $9.6 million, and is quoted at...
Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt–equity ratio of .75. The cost of equity is 11.6 percent and the pretax cost of debt is 6.7 percent. What is the capital structure weight of the firm's equity if the firm's tax rate is 40 percent?
Your firm has a credit rating of A. You notice that the credit spread for five-year maturity A debt is 85 basis points left parenthesis 0.85 % right parenthesis .(0.85%). Your firm's five-year has semi-annual coupons and a coupon rate of 6%. You see that new five-year Government of Canada bonds are being issued with a YTM of 3%. What should the price of your outstanding five-year bonds be? Assume a par value of $100.
A firm issues 5175 million in straight bonds at par and a coupon rate of 7%. The firm pays fees of 45% on the face value of the bonds. What is the net amount of funds that the debate will provide for the firm? O A. $167 million OB. 5184 milion OC. $159 million OD $175 milion
Weismann Co. issued 11-year bonds a year ago at a coupon rate of 10 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 10 percent, what is the current bond price? Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 8 years to maturity,...