Bells Inc. plan to issue new 7.0% coupon, 25-year semi-annual bonds with a standard par value. If the bonds are currently selling at $1100.00, what would the yield to maturity be for bond investors?
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Bells Inc. plan to issue new 7.0% coupon, 25-year semi-annual bonds with a standard par value.
If the bonds are currently selling at $1100.00, what would the yield to maturity be for bond
investors?
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- Jordie Systems Co. plans to issue bonds with a par value of $1,000 and 20 years to maturity. These bonds will pay a coupon rate of 2.5% and interest paid semiannually. Current market conditions are such that the bonds will be sold to net $1,042.00. What is the yield to maturity (YTM) on an annual basis that a broker would quote to an investor?Goatboy Corporation bonds are currently priced at $1182.56 and have 25 years until maturity. The bonds have a 12% coupon rate and pay interest semiannually. The bonds also have a par value of $1000 and a yield to maturity of 10%. Assuming that the YTM stays the same, what would be the bond's capital gians yield if sold next year?Phil Manufacturing, Inc. bonds have a face value of $1,000, a coupon rate of 6.5 percent, semiannual interest payments, and mature in 19 years. What is the current price of these bonds if the yield to maturity is 6.65 percent? Can the calculator and excel solution be provided?
- Mertol Corporation has 7-year, 1000t par value bonds that make semiannual coupon payments. The current yield-to-maturity on the bonds 22,45% and the bond currently sells for 673,99t. a. What is the annual coupon rate on the bond? b. What is the current yield of the bond? What is the expected capital gains yield tor the next year? c. What is the effective YTM an investor will earn on Mertol bonds?KIC Inc. plans to issue $5.0 million of bonds with a coupon rate of 10 percent paid semiannually and 30 years to maturity. The current one-year market interest rate on these bonds is 9 percent. In one year, the interest rate on the bonds will be either 12 percent or 6 percent with equal probability. Assume investors are risk neutral. If the bonds are non-callable, what is the price of the bonds today?A firm’s bonds have a maturity of 8 years with a $1,000 face value,have an 11% semiannual coupon, are callable in 4 years at $1,154, and currently sell at aprice of $1,283.09. What are their nominal yield to maturity and their nominal yield to call?What return should investors expect to earn on these bonds?
- Last year Carson Industries issued a 10-year, 13% semiannual coupon bondat its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,065and it sells for $1,200.a. What are the bond’s nominal yield to maturity and its nominal yield to call? Would aninvestor be more likely to earn the YTM or the YTC?b. What is the current yield? Is this yield affected by whether the bond is likely to be called?(Hint: Refer to footnote 6 for the definition of the current yield and to Table 7.1.)c. What is the expected capital gains (or loss) yield for the coming year? Is this yielddependent on whether the bond is expected to be called? Explain your answer.Your company wants to raise $8.0 million by issuing 30-year zero-coupon bonds. If the yield to maturity on the bonds will be 5% (annual compounded APR), what total face value amount of bonds must you issue?Your company wants to raise $7.0 million by issuing 20-year zero-coupon bonds. If the yield to maturity on the bonds will be 6% (annual compounded APR), What total face value amount of bonds must you issue? The total face value amount of bonds that you must issue is $_____ (Round to the nearest cent.)
- Pharaoh, Inc. has four-year bonds outstanding that pay a coupon rate of 7.0 percent and make coupon payments semiannually. If these bonds are currently selling at $918.32. What is the yield to maturity that an investor can expect to earn on these bonds? Assume face value is $1000. (Round to 1 decimal) Solve for yield to maturity What is the effective annual yield?ABC Inc. is planning to issue new annual coupon bonds with a maturity of ten years. The company outstanding (annual coupon paying) bonds have a 7.5% coupon rate and mature in ten years. They are currently selling for $1,013.03. What would the coupon rate on the new bonds have to be such that they will sell at par upon issuance?Bondo is issuing a new 13.0-year bond at a face value of $1,000 with a coupon rate of 9.0%. Coupons are semi-annual. What should the market price of these bonds be if the yield to maturity is 2.0%?