Question
In: Accounting
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
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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8) a. Suppose a 7.6% semi-annual coupon 20-year Treasury issue
with a par value of $100 issue is priced in the market based on the
on-the-run 20-year Treasury yield. Assume further that this yield
is 6.20%, so that each cash flow is discounted at 6.20% divided by
2. What is the market price of the Treasury issue based on this
assumption?
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AB Corporation currently has 40,000 of its 9.5% semi-annual coupon bonds outstanding (Par value = $1,000)....
AB Corporation currently has 40,000 of its 9.5% semi-annual
coupon bonds outstanding (Par value = $1,000). The bonds will
mature in 20 years and are currently priced at $1,280 per bond. The
company has an issue of 1.2 million preferred shares outstanding
with a market price of $10.95. The preferred shares offer an annual
dividend of $1.05. The company also has 2.5 million shares of
common stock outstanding with a price of $26.00 per share. The
company is expected to...
AB Corporation currently has 40,000 of its 9.5% semi-annual coupon bonds outstanding (Par value = $1,000)....
AB Corporation currently has 40,000 of its 9.5% semi-annual
coupon bonds outstanding (Par value = $1,000). The bonds will
mature in 20 years and are currently priced at $1,280 per bond. The
company has an issue of 1.2 million preferred shares outstanding
with a market price of $10.95. The preferred shares offer an annual
dividend of $1.05. The companyalso has 2.5 million shares of common
stock outstanding with a price of $26.00 per share. The company is
expected to pay...
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....
O’Biren Corporation issues bonds with $8,000,000 face value and 8% coupon rate (paid semi-annually), which mature...
O’Biren Corporation issues bonds with $8,000,000 face value and
8% coupon rate (paid semi-annually), which mature in 5 years. The
market initially prices these bonds to yield 6%, compounded
semi-annually. Prepare the bond amortization schedule following the
format below. Please round up the number to one dollar. Please do
this in Excel first and then copy the numbers to the table
below.
Period
Bond Beginning Balance
Coupon Amount
Interest Expense
Change in Bond Value
Bond Ending Balance
1
2
3...
ABC's bonds will be maturing in 8 years, pay 8 percent coupon rate on the $1,000...
ABC's bonds will be maturing in 8 years, pay 8 percent
coupon rate on the $1,000 par value.
a. The value of the bond is
$________, if the coupon is paid
semiannually. (Round to the nearest cent.)
b. The value of the bond is
$________, if the coupon is paid
annually.
A 20 yr maturity bond with par value of $1000 makes semi-annual coupon payment at a...
A 20 yr maturity bond with par value of $1000 makes semi-annual
coupon payment at a coupon rate of 8%. What is the effective annual
yield if the bond price is $950?
The answer is 8.7%
Please show work, USING THE BA CALCULATOR. Thank you.
21. If a 3-year, semi-annual bond ($1,000 par value) has an annual coupon rate of 8...
21. If a 3-year, semi-annual bond ($1,000 par
value) has an annual coupon rate of 8 percent, and
an annual yield to maturity of 6 percent, then
calculate Macaulay's duration of the bond using
the table format demonstrated in the video
(not the equation)
PP Inc. has outstanding bonds with an annual 8% coupon. The bonds have a par value...
PP Inc. has outstanding bonds with an annual 8% coupon. The
bonds have a par value of $1,000 and a price of $865. The bonds
will mature in 11 years. What is the yield to maturity on the
bonds?
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