A corporation issues a series of bonds that pays 8% coupon
interest with 6 years to...
A corporation issues a series of bonds that pays 8% coupon
interest with 6 years to maturity. If the yield to maturity is 12%
and the face value is $1000 what is the Macaulay’s duration of this
bond?
A corporation has 10,000 bonds outstanding with a 6% annual
coupon rate, 8 years to maturity, a $1,000 face value, and a $1,100
market price.
The company’s 500,000 shares of common stock sell for $25 per
share and have a beta of 1.5. The risk free rate is 4%, and the
expected return on the market is 12%.
The company recently paid a dividend of $2.0 per share on the
common stock. The expected dividend growth rate is 7%.
The...
- A corporation has 10,000 bonds outstanding with 6% annual
coupon rate, 8 years to maturity, $1,000 face value, and $1,100
market price.
- The company’s 500,000 shares of common stock sell for $25 per
share and have a beta of 1.5. The risk-free rate is 4%, and the
market risk premium is 8%.
- The company’s 100,000 shares of preferred stock pay a $3
annual dividend, and sell for $30 per share.
- Assuming a 40% tax rate, what...
XYZ Corporation has 8% coupon bonds with 5 years to maturity.
The bonds have a YTM of 5%. What is their current market price and
current yield? Assume interest is paid semi-annually.
Use formula and show all work step by step.
Consider two bonds, X and Y. Each pays a coupon rate of interest
of 8% semi-annually. Bond X will mature in 3 years while Bond Y
will mature in 2 years. If the yields to maturity on the two bonds
change from 8% to 7.5%, ________.
Group of answer choicesboth bonds will decrease in value but
Bond X will decrease more than Bond Y. both bonds will increase in
value but Bond Y will increase more than Bond X. both...
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
On December 31, 2018, when the market interest rate is 8%, Arnold Corporation issues $200,000 of 6%, 10-year bonds
payable. The bonds pay interest semiannually. Determine the present value of the bonds at issuance.
On January 1, 2018, Vandenplas issues $800,000 of 8% bonds, due
in ten years, with interest payable semiannually on June 30 and
December 31 each year. Assuming the market interest rate on the
issue date is 9%, the bonds will issue at $747,968.
Record the bond issue on January 1, 2018, and the first four
semi-annual interest payments on June 30, 2018, December 31, 2018,
June 30, 2019, and December 31, 2019.
Marwick Corporation issues 8%, 5 year bonds with a par value of
$1,150,000 and semiannual interest payments. On the issue date, the
annual market rate for these bonds is 6%. What is the bond's issue
(selling) price, assuming the following Present Value
factors:
n=
i=
Present Value of an
Annuity
Present value
of $1
5
8
%
3.9927
0.6806
10
4
%
8.1109
0.6756
5
6
%
4.2124
0.7473
10
3
%
8.5302
0.7441
Multiple Choice
$1,248,104
$757,611
$1,150,000
$939,244...
An Exxon bond carries a 6 percent coupon rate, pays interest
semiannually, and has 15 years to maturity. If this bond is
currently selling for $950, what is the exact yield to maturity (to
the nearest tenth of 1 percent)? ?
Sage Hill Inc. issues $7,750,000 of 6% bonds due in 9 years with
interest payable at year-end. The current market rate of interest
for bonds of similar risk is 8%. What amount will Sage Hill receive
when it issues the bonds?