Bond price: Nanotech Ltd has a bond issue maturing in seven years and paying a coupon...

Bond price: Nanotech Ltd has a bond issue maturing in seven years and paying a coupon rate of 11.39 percent (semiannual payments). The company wants to retire a portion of the issue by buying the securities in the open market. If it can refinance at 10.73 percent, Nanotech will pay $_______________ to buy back its current outstanding bonds?

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

As nothing was mentioned excel is used.

jeff jeffy answered 4 months ago

Nanotech, Inc., has a bond issue maturing in seven years that is paying a coupon rate...

Nanotech, Inc., has a bond issue maturing in seven years that is paying a coupon rate of 8.46 percent (semiannual payments). Management wants to retire a portion of the issue by buying the securities in the open market. If it can refinance at 10.82 percent, how much will Nanotech pay to buy back its current outstanding bonds? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25.) Nanotech will pay $......

Sunland, Inc., has a bond issue maturing in seven years that is paying a coupon rate...

Sunland, Inc., has a bond issue maturing in seven years that is paying a coupon rate of 8.5 percent (semiannual payments). Management wants to retire a portion of the issue by buying the securities in the open market. If it can refinance at 7.0 percent, how much will Sunland pay to buy back its current outstanding bonds? (Round answer to 2 decimal places, e.g. 15.25.) Sunland will pay $

Bond T is a coupon bond with a coupon rate of 2% maturing in 3 years....

Bond T is a coupon bond with a coupon rate of 2% maturing in 3 years. The bond pays coupon annually, and has a face value of $100.15. What is the Macaulay duration of the coupon bond

4. A bond maturing in 15 years has a coupon of 7.5% and a par value...

4. A bond maturing in 15 years has a coupon of 7.5% and a par value of $1,000. If you purchase the bond for $1,145.68: a. What is your current yield? b. What is your yield to maturity?

Part A Seven years ago you’ve purchased a corporate bond for $960 paying an annual coupon...

Part A Seven years ago you’ve purchased a corporate bond for $960 paying an annual coupon rate of 9%. At that time the YTM was 10% and there were 10 years left to maturity. Today, the YTM on your bond is 8%. Will the price of this bond be lower or higher than its face value? Why? Calculate the current price of this bond. Part B YMCA Company’s preferred stock pays a dividend of $12 per year. If the stock...

You buy a 7% coupon bond maturing in 5 years. The bond has a $70 annual...

You buy a 7% coupon bond maturing in 5 years. The bond has a $70 annual coupon, $1,000 face value, and the promised annual coupon is $70. The market's required return on similar bonds is 7%. I know that the present value of the face value is $712.99. How would I calculate the present value of the coupon payments? I know it's $287.01, but what values would I put in a Texas Instruments BA II plus calculator to yield this?

LLK Ltd recently issued bonds paying a fixed annual coupon of 10% p.a. and maturing in...

LLK Ltd recently issued bonds paying a fixed annual coupon of 10% p.a. and maturing in 5 years’ time. The yield to maturity on these bonds is 8% p.a. If market interest rates fall, what is most likely to happen to the price of the bonds?

Cassey Computer Ltd. has an outstanding issue of bond with a par value of $1,000, paying...

Cassey Computer Ltd. has an outstanding issue of bond with a par value of $1,000, paying 8 percent coupon rate semi‑annually. And, the company just paid a dividend of $2.70 per share. The dividends are expected to grow at 5.0 percent for next 2 years. i.e. year 1 and 2, and after year 2, dividends are estimated to grow at 4 percent thereafter indefinitely. Based on market information, government bond’s yield for 10-year maturity is 5 percent, market expected return is 15...

find the EAY of a bond maturing in 18 years with a coupon rate of 12%...

find the EAY of a bond maturing in 18 years with a coupon rate of 12% and market price of 1347.31

A company has a 6% coupon bond maturing in 2030. The bond has a call feature...

A company has a 6% coupon bond maturing in 2030. The bond has a call feature that can be exercised after 2020. Based on the current price, the yield to call on this bond is 6.4% and the yield to maturity is 6.7%. The yield to worst is: (Check correct answer.) ______a.) 6.4% ______b.) 6.0% ______c.) 6.7% A private placement of bonds (Indicate True or False for each statement): ______a.) Is preceded by the filing of a registration statement and...

Question