a.YP Cheang Corporation issued a 20 years, non-callable, 7.5 percent annual coupon bonds at their par...

a.YP Cheang Corporation issued a 20 years, non-callable, 7.5 percent annual coupon bonds at their par value of RM1000 one year ago. Today, the market interest rate on these bonds is 5.5 percent. What is the current price of the bonds, givens that they have 19 years to maturity?

b. Penasonik Berhad’s bonds make an annual coupon interest payment of 7.35 percent. The bonds have a par value of RM1000, current price is at RM1130, and mature in 12 years. What is the yield to maturity on these bonds?

c. Hunda Corporation’s expected year end dividend amounting to RM1.60, and its required return is 11 percent. The dividend yield is 6 percent and its growth rate is expected to be constant in the future. What is Hunda Corporation’s expected stock price in 7 years?

d. The Airasiang Berhad is expected to pay a dividend of RM1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6 percent per year in the future. The company’s beta is 1.15, the market risk premium is 5.5 percent and the risk free rate is 4 percent. What is the Airasiang Berhad’s current stock price?

e. If the dividend already paid at RM1.75, the growth which is constant at 3.6 percent, and the price of the stock is RM32.00, what is the stock’s expected total return for coming year?

f. Makan Makan Incorporations has a stock with a required rate of return of 10.25 percent, and it sells for RM57.50 per share. The dividend is expected to grow at a constant rate of 6 percent per year. What is the expected year end dividend for this stock?

Expert Solution

jeff jeffy answered 2 years ago

Amir Enterprises’ non-callable semiannual coupon bonds currently sell for $1,150. They have a 20-yearmaturity, an annual coupon...

Amir Enterprises’ non-callable semiannual coupon bonds currently sell for $1,150. They have a 20-yearmaturity, an annual coupon of $100, and a par value of $1,000. What is their yield to maturity (annual)? Show work.

Boeing Corporation has just issued a callable (at par) three-year, 5.3% coupon bond with semi-annual coupon...

Boeing Corporation has just issued a callable (at par) three-year, 5.3% coupon bond with semi-annual coupon payments. The bond can be called at par in two years or anytime thereafter on a coupon payment date. It has a price of $98.65. a. What is the bond's yield to maturity? b. What is its yield to call? c. What is its yield to worst?

Bob’s Roofing’s non-callable bonds were issued several years ago and now have 20 years to maturity....

Bob’s Roofing’s non-callable bonds were issued several years ago and now have 20 years to maturity. These bonds have a 7.28% annual coupon, paid semiannually, sells at a price of $1,054, and has a par value of $1,000. If the firm’s tax rate is 35%, what is the component cost of debt (after-tax) for use in the WACC calculation?

Three years ago, the Fairchildress Co. issued 20-year, 7.75 percent semiannual coupon bonds at par. Today,...

Three years ago, the Fairchildress Co. issued 20-year, 7.75 percent semiannual coupon bonds at par. Today, the bonds are quoted at 102.6. What is this firm's pretax cost of debt?

Boeing Corporation has just issued a callable (at par) three-year, 5.3 % coupon bond with semi-annual...

Boeing Corporation has just issued a callable (at par) three-year, 5.3 % coupon bond with semi-annual coupon payments. The bond can be called at par in two years or anytime thereafter on a coupon payment date. It has a price of $ 98.58 a. What is the bond's yield to maturity? b. What is its yield to call? c. What is its yield to worst?

Boeing Corporation has just issued a callable (at par) three-year, 4.7 % coupon bond with semi-annual...

Boeing Corporation has just issued a callable (at par) three-year, 4.7 % coupon bond with semi-annual coupon payments. The bond can be called at par in two years or anytime thereafter on a coupon payment date. It has a price of $98.65. a. What is the bond's yield to maturity? b. What is its yield to call? c. What is its yield to worst?

Suppose Disney issued a convertible (non-callable) bond with an annual coupon of 10% that matures in...

Suppose Disney issued a convertible (non-callable) bond with an annual coupon of 10% that matures in 5 years. The conversion ratio is 26.32 shares of stock per bond and Disney’s stock is currently trading at $30 per share. The convertible bond is priced at $900 in the market and the appropriate discount rate is 13%. What is the Straight Bond Value of this convertible? What is the Option Value of the Bond? What is the Conversion Value of the Bond?...

A corporation issues $8 000 000-par value , 8 percent semi-annual coupon bonds maturing in 20...

A corporation issues $8 000 000-par value , 8 percent semi-annual coupon bonds maturing in 20 years. The market initially prices these bonds to yeild 6 percent compounded semi-annually. 1.) compute the issues of these bonds 2.) compute interest expense for the first six-month period 3.) compute intrest for the second six-month period

Debt: 5,500 7.5 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for...

Debt: 5,500 7.5 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. Common stock: 132,000 shares outstanding, selling for $57 per share; the beta is 1.11. Preferred stock: 18,000 shares of 6.5 percent preferred stock outstanding, currently selling for $106 per share. Market: 8.5 percent market risk premium and 6 percent risk-free rate. Assume the company's tax rate is 31 percent. What is the WAAC?

Bettanin Corporation recently issued 20-year bonds. The bonds have a coupon rate of 8 percent and...

Bettanin Corporation recently issued 20-year bonds. The bonds have a coupon rate of 8 percent and pay interest semiannually. Also, the bonds are callable in 6 years at a call price equal to 115 percent of par value of $1,000. The par value of the bonds is $1,000. If the yield to maturity is 7 percent, what is the yield to call?

Question