In: Finance

ExxonMobil 12 year bonds pay 9 percent interest annually on a $1,000 par value. If the bonds sell at $775 what is the bonds' expected rate of return? The bonds' expected rate of return is ?

The expected rate of return on the Bond is calculated using excel below

The expected rate of return is therefore = 12.76%

The 12-year, $1,000 par value bonds of Waco Industries pay 12
percent interest annually. The market price of the bond is $955,
and the market's required yield to maturity on a comparable-risk
bond is 14 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?
Round to nearest two decimal places:

The 11-year, $1,000 par value bonds of Waco Industries pay 9
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 6 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?

Fingen's 13-year, $1,000 par value bonds pay 9 percent
interest annually. The market price of the bonds is $850 and the
market's required yield to maturity on a comparable-risk bond is
10 percent.
a. Compute the bond's yield to maturity.
b. Determine the value of the bond to you, given your required
rate of return.
c. Should you purchase the bond?

Fingen's 12-year, $1,000 par value bonds pay 15 percent
interest annually. The market price of the bonds is $880 and the
market's required yield to maturity on a comparable-risk bond is
16 percent.
a. Compute the bond's yield to maturity.
b. Determine the value of the bond to you, given your required
rate of return.
c. Should you purchase the bond?

The 12-year, $1,000 par value bonds of Smith Industries pay 7
percent interest annually. The market price of the bond is $885,
and the market’s required yield to maturity on a comparable-risk
bond is 10 percent.
What is your yield to maturity on the Smith bonds given the
current market price of the bonds? Round to two decimal
places.
What should be the value of the Smith bonds given the market's
required yield to maturity on acomparable-risk bond? Round to...

Fingen's 15-year, $1,000 par value bonds pay 12 percent
interest annually. The market price of the bonds is $1,100 and
the market's required yield to maturity on a comparable-risk bond
is 9 percent.
a. Compute the bond's yield to maturity.
b. Determine the value of the bond to you, given your required
rate of return.
c. Should you purchase the bond?

The 12-year, $1,000 par value bonds of Waco Industries pay 12
percent interest annually. The market price of the bond is
$1,135, and the market's required yield to maturity on a
comparable-risk bond is 9 percent. Compute the bond's yield to
maturity.1. Determine the value of the bond to you given the market's
required yield to maturity on a comparable-risk bond.

Fingen's 15-year, $1,000 par value bonds pay 11
percent interest annually. The market price of the bonds is $920
and the market's required yield to maturity on a comparable-risk
bond is 14 percent.
a. Compute the bond's yield to maturity.
b. Determine the value of the bond to you, given your required
rate of return.
c. Should you purchase the bond?

The 16-year, $1,000 par value bonds of Waco Industries pay 11
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 10 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?

The 11-year, $1,000 par value bonds of Witt Industries pay 7
percent interest annually. The market price of the bond is $865,
and the market’s required yield to maturity on a comparable-risk
bond is 10 percent. A. What is your yield to maturity on the Witt
bonds given the current market price of the bonds? _% Please round
to two decimal places. B. What should be the value of the Witt
bonds given the market's required yield to maturity on...

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