1. Company X is issuing bonds. They plan to issue 10,000, $1000 par, 7% bonds that...

1. Company X is issuing bonds. They plan to issue 10,000, $1000 par, 7% bonds that pay semi-annual for 5 years. What are the proceeds from this bond sale if the market rate is 8%?

2. Company X is issuing bonds. They plan to issue 10,000, $1000 par, 6% bonds that pay semi-annual for 5 years. If the bond price is $980, what is the market annual rate-of-return? (percentage, 2 decimals, e.g. xx.xx)

3. Assume you will make $40,000/year with a high school diploma. You will make $70,000/year with accounting degree. Assume you work for 40 years and earn 8%. How much is that accounting degree worth? (hint: compare PVs)

4. If the price of the bond is the same as the par value, then the bond is a:

Group of answer choices a. premium bond. b. discount bond c. at par bond

Expert Solution

ekkarill92 answered 2 years ago

1. company x is issuing bonds. they plan to issue 10,000 $1000 par, 7% bonds that...

1. company x is issuing bonds. they plan to issue 10,000 $1000 par, 7% bonds that pay semi-annual for 5 years. If the price per bond is $1020, what is the market annual rate-of- return?(percentage, 2 decimals,) 2.assume you will make $40,000/year with a high school dipolma. you will make$70,000/year with accounting degree. Assume you work for 40 years and earn 8%. How much is that accounting degree worth?(hint: compare PVs)

Company X is issuing bonds. They plan to issue 10,000, $1000 par, 6% bonds that pay...

Company X is issuing bonds. They plan to issue 10,000, $1000 par, 6% bonds that pay semi-annual for 5 years. What are the proceeds from this bond sale if the market rate is 7%?

Company Y is issuing bonds. They plan to issue 10,000, $1000 par, 6% bonds that pays...

Company Y is issuing bonds. They plan to issue 10,000, $1000 par, 6% bonds that pays semi-annual for 5 years. If the bond price is $1020, what is the market annual rate of return? (Percentage, 2 dp)

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