OBJ Inc. issued $1000 par value, 17-year bonds at a coupon rate
of 10.8 percent. These...
OBJ Inc. issued $1000 par value, 17-year bonds at a coupon rate
of 10.8 percent. These bonds were issued 2 years ago. These bonds
currently sell for 97 percent of par value and make semiannual
payments. What is the YTM?
Weismann Co. issued 17-year bonds a year ago at a coupon rate of
11 percent. The bonds make semiannual payments and have a par value
of $1,000. If the YTM on these bonds is 8 percent, what is the
current bond price? Multiple Choice • $586.82 • $1,278.10 •
$1,718.94 • $1,268.10 • $1,187.49
The 17 year, $1000 par
value bonds of Waco Industries pay 6 percent interest annually. The
market price of the bond is $945, and the market's required yield
to maturity on a comparable-risk bond is 5 percent.
a. Compute the bond's yield to maturity.
b. Determine the value of the bond to you given
the market's required yield to maturity on a comparable-risk
bond.
c. Should you purchase the bond?
A company issued $1000 par value 20- year zero coupon bonds on
jan.1,2020. The purpose was to raise $100 million of funding for
future development. Yield to Maturity on this bond is 3.5%
1. Calculate the total cash amount that the company needed to
have available on the maturity date of jan.1,2040 to pay all the
bondholders?
2. Use the IRS amortization rule to calculate the company's
total interest expense for on the bonds for 2020/
Assume a bond has a 1000 par value and a 5 percent coupon rate,
two year remaining to maturity, and a 10 percent yield to maturity.
What is the duration of this bond?
A. 2
B. 1.97
C. 1.95
D. 1.83
Answer is C. I need to know how, please show work!
Company issued 10-year, 11 percent coupon bond with a par value
of $1,000. The bonds may be called in 5 years at a call price of
$1,150. The bond currently sells for $1,350.
You are required to answer the following questions:
a) What is the bond's yield to maturity?
b) What is the bond's current yield?
c) What is the bond's capital gain or loss yield?
d) What is the bond's yield to call?
e) If you bought this bond...
Bond valuation relationships)
The 17-year, $1000 par value bonds of Waco Industries pay 11
percent interest annually. The market price of the bond is
$1,095, and the market's required yield to maturity on a
comparable-risk bond is 8 percent.
a. Compute the bond's yield to maturity.
b. Determine the value of the bond to you given the market's
required yield to maturity on a comparable-risk bond.
c. Should you purchase the bond?
a. What is your yield to maturity on...
Micro Spinoffs Inc. issued 20-year debt a year ago at par value
with a coupon rate of 5%, paid annually. Today, the debt is selling
at $1,140. If the firm’s tax bracket is 21%, what is its percentage
cost of debt? Assume a face value of $1,000
Micro Spinoffs, Inc., issued 10-year debt a year ago at par
value with a coupon rate of 8%, paid annually. Today, the debt is
selling at $1,160. If the firm’s tax bracket is 35%, what is its
after-tax cost of debt? (Do not round intermediate
calculations. Round your answer to 2 decimal places.)
After-tax cost of debt
%
ABC Inc. recently issued $1,000 par bonds at a 18.96% coupon
rate. If the bonds have 19 years to maturity and a YTM of 18.16%,
what is the current price of the bond? Assume semi-annual
compounding.