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Warrants Neubert Enterprises recently issued $1,000 par value 15-year bonds with a 6% coupon paid annually...
Warrants Gregg Company recently issued two types of bonds. The first issue consisted of 20-year straight (no warrants attached) bonds with an 10% annual coupon. The second issue consisted of 20-year bonds with a 7% annual coupon with warrants attached. Both bonds were issued at par ($800). What is the value of the warrants that were attached to the second issue? Round your answer to the nearest cent.
2. Suppose a company issues a bond with a par value of $1,000, 23 years to maturity, and a coupon rate of 5.8% paid annually. If the yield to maturity is 4.7%, what is the current price of the bond? 3. Seekers Inc. issued 15-year bonds a year ago at a coupon rate of 4.1%. The bonds make semiannual payments and have a par value of $1,000. If the YTM is 4.5%, what is the current bond price?
Problem /-/ Fix-It Inc. recently issued 10-year, $1000 par value bonds at an 10% coupon rate. Assume bond coupons are paid semiannually. Round PVFA and PVF values in intermediate calculations to four decimal places. Do not round other intermediate calculations. a. Two years later, similar bonds are yielding investors 6%. At what price are Fix-Its bonds selling? Round the answer to the nearest cent. b. What would the bonds be selling for if yields had risen to 12%? Round the...
Four years ago, your firm issued $1,000 par, 25-year bonds, with a 9% coupon rate and a 12% call premium. Assume semiannual compounding. If these bonds are now called, what is the actual yield to call for the investors who originally purchased them at par? Do not round intermediate calculations. Round your answer to two decimal places. ____% annually If the current interest rate on the bond is 6% and the bonds were not callable, at what price would...
ABC Inc. recently issued $1,000 par bonds at a 5.25% coupon rate. The bonds have 15 years to maturity and current price of the bond is $850. If the call price is $1,050 and the bond can be called in 10 years, what is the yield to call? Assume semi-annual compounding. Note: Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box.
ABC Inc. recently issued $1,000 par bonds at a 5.25% coupon rate. The bonds have 15 years to maturity and current price of the bond is $850. If the call price is $1,050 and the bond can be called in 10 years, what is the yield to call? Assume semi-annual compounding. Note: Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box.
Problem 12-06 Four years ago, your firm issued $1,000 par, 25-year bonds, with a 7% coupon rate and a 10% call premium. Assume semiannual compounding. a. If these bonds are now called, what is the actual yield to call for the investors who originally purchased them at par? Do not round intermediate calculations. Round your answer to two decimal places. % annually b. If the current interest rate on the bond is 5% and the bonds were not callable, at...
ABC Inc. recently issued $1,000 par bonds at a 8.40% coupon rate. The bonds have 18 years to maturity and the current price is $885. If the call price is $1,080 and the bond can be called in 8 years, what is the yield to call? Assume semi-annual compounding. Note: Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box. Question 19 1 pts The coupon rate on a bond...
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?
Suppose that a 15-year $1000-face value government (risk-free) coupon bond with 8% coupon payments (paid annually) is currently selling at par. ABC Company’s bonds are rated AA, and the credit spread on these bonds is 3%. At what price would you be willing to purchase a 15-year ABC Company bond with a $1000-face value if it offers 8% coupon payments (paid annually)? Show your calculations and explain your result.