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?

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jeff jeffy answered 1 year ago

Weismann Co. issued 17-year bonds a year ago at a coupon rate of 11 percent. The...

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...

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...

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/

Company issued 10-year, 11 percent coupon bond with a par value of $1,000. The bonds may...

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...

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...

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

What is the present value of bonds with the followingcharacteristics: Annual Coupon Rate =3% Par=$1000...

What is the present value of bonds with the following characteristics: Annual Coupon Rate =3% Par=$1000 Maturity=25 years YTM=7%

ABC Inc. recently issued $1,000 par bonds at a 18.96% coupon rate. If the bonds have...

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.

XYZ limited had issued bonds with a par value of Rs. 100 and a coupon rate...

XYZ limited had issued bonds with a par value of Rs. 100 and a coupon rate of 12% p.a. The bond has maturity of 30 months and pays quarterly coupons. Calculate the fair price of the bond if the required rate of return by investors is 8%.

In December 2010, Alpha Technologies Plc. issued coupon bonds with par value £100. The coupon rate...

In December 2010, Alpha Technologies Plc. issued coupon bonds with par value £100. The coupon rate is 8 percent annually and the bonds will be redeemed at par value in December 2015. What is the price of the bond if the competitive market interest rate is 10 percent? How would your answer change if the coupons were paid semi-annually?

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