A Japanese company has a bond outstanding that sells for 106
percent of its ¥100,000 par...
A Japanese company has a bond outstanding that sells for 106
percent of its ¥100,000 par value. The bond has a coupon rate of
5.4 percent paid annually and matures in 11 years.
A japanese comapny has a bond outstanding that sells for 91.53
percent of its 100,000 par value. The bond has a coupon rate of 3.4
percent paid annually and matures in 16 years. What is the yield to
maturity of this bond?
Settlement date = 1/1/2000
Maturity date = 1/1/2016
Annual coupon rate = 3.4%
Coupons per year = 1
Face value (% of par) = 100
Bond price (% of par) = 91.530
Face value = 100,000
Please answer...
The Corner Grocer has 7-years , 6 percent annual coupon bond
outstanding with a 1,000 par value . the bond has a yield to
maturity of 5.5 percent . which one of the following statements is
correct if the market yield suddenly increases 6.5 percent?
Applied Software has a $1,000 par value bond outstanding that
pays 20 percent interest with annual payments. The current yield to
maturity on such bonds in the market is 9 percent.
Compute the price of the bonds for these maturity dates:
(Use a Financial calculator to arrive at the
answers. Do not round intermediate calculations.
Round the final answers to 2 decimal places.)
Price of the
bond
a. 30 years
$
b. 18 years
$
c. 4 years
$
The Corner Grocer has an 8-year, 7 percent annual coupon bond
outstanding with a $1,000 par value. The bond has a yield to
maturity of 6.4 percent. Which one of the following statements is
correct if the yield to maturity suddenly increases to 7.3
percent?
a. The bond price will decrease by $55.21.
b. The bond price will increase by 5.25 percent.
c. The bond price will decrease by 5.11 percent.
d. The bond price will increase by $58.69.
e....
Midland Utilities has a bond issue outstanding that will mature
to its $1,000 par value in 19 years. The bond has a coupon interest
rate of 11% and pays interest annually.
a. Find the value of the bond if the required return is (1)
11%, (2) 15%, and (3) 8%.
b. Use your finding in part a and the graph here, to discuss
the relationship between the coupon interest rate on a bond and the
required return and the market...
Bella Donna Company has 100,000 shares of $4 par common stock
issued and outstanding as of January 1, 2018. The shares were
originally issued for $9 per share. On February 3, 2018, Bella
Donna repurchased 3,690 shares at $6 per share for the purposes of
retiring them. What will be the balance in
Paid in capital in excess of par after February
3rd transaction?
PLEASE SHOW ALL WORK AND EXPLAIN, THANK YOU
Consider the following information:
1) Bonds outstanding: 80,000. Each bond sells at its $1,000 par
value. The bonds are priced to provide a YTM of 8.6 percent.
2) Stock outstanding: 4 million shares. Current stock price =
$40 per share. Book value = $28 per share. Current stock beta =
1.1.
3) The risk-free rate is 4%, the tax rate is 34%, and the
expected return on the market portfolio is 12%.
What is the weighted average cost of capital...
a. Company x has 25,000 bonds outstanding that trade at
par
value (each bond has a par value of $1,000). Companies with similar
characteristics have
their bonds trading at a yield of 5.5%. The company also has 2
million shares of common
stock outstanding. The stock has a beta of 1.2 and sells for $50 a
share. The risk free rate
is 2% and the market risk premium is 5%. The company’s tax rate is
30%. What is the
company’s...
Kilgore Natural Gas has a $1,000 par value bond outstanding that
pays 10 percent annual interest. The current yield to maturity on
such bonds in the market is 15 percent. Use Appendix B and Appendix
D for an approximate answer but calculate your final answer using
the formula and financial calculator methods. Compute the price of
the bonds for these maturity dates: (Do not round intermediate
calculations. Round your final answers to 2 decimal places. Assume
interest payments are annual.)...
Kilgore Natural Gas has a $1,000 par value bond outstanding that
pays 13 percent annual interest. The current yield to maturity on
such bonds in the market is 15 percent. Use Appendix B and Appendix
D for an approximate answer but calculate your final answer using
the formula and financial calculator methods.
Compute the price of the bonds for these maturity dates:
30years_______
16years_______
7years________