If you bought one of these bonds today, what is your expected rate of return? (Round answer to 2 decimal places, e.g. 15.25%.) Realized rate of return %
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Answer problem 8.30(c)
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- Sheridan Corp. has 18-year bonds outstanding. These bonds, which pay interest semiannually, have a coupon rate of 10.065 percent and a yield to maturity of 9.3 percent. Assume face value is $1,000. Problem 8.30(a) Your answer is incorrect. Compute the current price of these bonds. (Round answer to 2 decimal places, e.g. 15.25.) Current price $ eTextbook and Media Save for Later Attempts: unlimited Submit AnswerPharoah Corp. has 18-year bonds outstanding. These bonds, which pay interest semiannually, have a coupon rate of 9.635 percent and a yield to maturity of 9.0 percent. Assume face value is $1,000. Problem 8.30(a) Your answer is correct. Compute the current price of these bonds. (Round answer to 2 decimal places, e.g. 15.25.) Current price $ eTextbook and Media Problem 8.30(b) Your answer is correct. 1,056.09 Realized yield If the bonds can be called in five years at a premium of 11.0 percent over par value, what is the investor's realized yield? (Round answer to 3 decimal places, e.g. 15.255%.) 9.936 Attempts: unlimited %You are analyzing the cost of debt for a firm. You know that the firm's 14-year maturity, 8.6 percent coupon bonds are selling at a price of $832.00. The bonds pay interest semiannually. If these bonds are the only debt outstanding, answer the following questions. Problem 13.17 a1-a2(a1) Your answer is incorrect. What is the current YTM of the bonds? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to O decimal places, e.g. 15%.) Current YTM for the bonds %
- An insurance company is analyzing the following three bonds, each with five years to maturity, annual interest payments, and is using duration as its measure of interest rate risk. What is the duration of each of the three bonds? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) a. $10,000 par value, coupon rate=9.7%, r 0.17 b. $10,000 par value, coupon rate 11.7%, r= 0.17 c. $10,000 par value, coupon rate = 13.7%, p=0.17 Duration of the bond yearsWildhorse Corp. has 18-year bonds outstanding. These bonds, which pay interest semiannually, have a coupon rate of 9.875 percent and a yield to maturity of 6.0 percent. Assume face value is $1,000. Problem 8.30(a) Your answer is incorrect. Compute the current price of these bonds. (Round answer to 2 decimal places, e.g. 15.25.) Current price $ EAIS - Sampoerna. O Dashboard VitalSource Booksh. O Spotify - Web Player Company XYZ's bonds have 12 years remaining to maturity, interest is paid annually, the bonds have $1,000 par value, and the coupon rate is 8%. The bonds have a yield to maturity of 9%. What is the current market price of these bonds?* a. 828.78 b. 968.39 c. 1,000,00 d. 1,075.36 O e. none of the above Which of the following statement is (are) correct? a zero coupon bend means the bond does not give (pay) coupon until maturity O b. the price of zero coupon bond is always at discount until its maturity O c. the price of bond will be at discount when the coupon is lower than its interest ra da and b e. a, b and c
- Your answer is partially correct. Swifty Ltd. issued a $1,184,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Swifty followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond.You are analyzing the cost of debt for a firm. You know that the firm’s 14-year maturity, 8.6 percent coupon bonds are selling at a price of $849.00. The bonds pay interest semiannually. If these bonds are the only debt outstanding for the firm, answer the following questions. What is the current YTM of the bonds? (round intermediate calculations to 4 decimal places, and final answer to 0 decimal places) What is the after-tax cost of debt for this firm if it has a 30 percent marginal and average tax rate? (Round final answer to 2 decimal places, e.g. 15.25%.)Please show complete steps using both formula dn financial calculator. The Lone Star Company has $1,000 par value bonds outstanding at 9 percent interest. The bonds will mature in 19 years. Calculate your final answer using both the formula and financial calculator methods. Compute the current price of the bonds if the present yield to maturity is. (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.) What is the bond price at. . . a. 6 percent b. 8 percent c. 12 percent.
- Nikita Enterprises has bonds on the market making annual payments, with eleven years to maturity, a par value of $1,000, and selling for $970. At this price, the bonds yield 7 percent. What must the coupon rate be on the bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Coupon rate I%Showbiz, Inc., has issued eight-year bonds with a coupon of 6.73 percent and semiannual coupon payments. The market’s required rate of return on such bonds is 7.51 percent. a. What is the market price of these bonds? (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answer to 2 decimal places, e.g. 15.25.) Market price $ _____________ b). If the above bond is callable after five years at an 9.7 percent premium on the face value, what is the expected return on this bond? (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answer to 2 decimal places, e.g. 15.25%.) Expected return _______________ %You are analyzing the cost of debt for a firm. You know that the firm’s 14-year maturity, 8.6 percent coupon bonds are selling at a price of $984.08. The bonds pay interest semiannually. If these bonds are the only debt outstanding for the firm, answer the following questions. What is the current YTM of the bonds? (Round final answer to 2 decimal places, e.g. 15.25%.) Current YTM for the bonds enter the current YTM of the bonds in percentages rounded to 2 decimal places %