1. FIN3100’s outstanding bonds mature in 10 years, have a par value of $1,000, and make...

FIN3100’s outstanding bonds mature in 10 years, have a par value of $1,000, and make an annual coupon payment of $70. The market yield on the bond is currently 10%. What is the bond's price?

B.) FIN3100 issued bonds with a 15-year maturity two year ago. The bonds have a 7% coupon, make one payment per year, and sold at their $1,000 par value. Market rate at the time was 7%. Now, two year later, the market rate has declined from 7% to 4%. At what price should FIN3100's bonds now sell?

C.)

FIN3100’s bonds have a 15-year maturity, a 12% quarterly coupon ($30 coupon payments are made every three months), a face value of $1,000, and cannot be called. The going nominal annual interest rate (rd) for similar quarterly payment bonds of equivalent risk is 8%. What is the bond's price?

Solutions

Expert Solution

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

1. O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years....

1. O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $875. What is the bond's coupon interest rate? 2. Stocks X just paid a dividend of $1 and a has a dividend growth rate of 10 percent. If the required rate of return is 20 percent, what is the value of the stock in one year? 3....

O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their...

O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal annual, not semiannual yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $700. What is the bond's nominal coupon interest rate? 6.15% 6.58% 7.01% 5.72% 4.86%

O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 20 years. Their...

O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 20 years. Their nominal yield to maturity is 8.75%, they pay interest semiannually, and they sell at a price of $875. What is the bond's nominal (annual) coupon interest rate? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.

FIN300 Ltd.'s outstanding bvonds have a $1,000 par value, and they mature in 20 years. Their...

FIN300 Ltd.'s outstanding bvonds have a $1,000 par value, and they mature in 20 years. Their nominal yield to maturity is 9.00%, they pay interest semiannually, and they sell at a price of $985. What is the bond's nominal coupon interest rate?

XYZ Corp.’s outstanding bonds have a $5,000 par value and they mature in 5 years. Their...

XYZ Corp.’s outstanding bonds have a $5,000 par value and they mature in 5 years. Their yield-to-maturity is 8%, annual coupon rate is 6%, and semi-annual compounding. (a) What's the bond's current market price? (b) What is the bond’s current yield? (c) If the Yield-to-maturity is 4%, what's the bond's current market price? please write the answer and how you worked it out on here instead of paper (d) If the Yield-to-maturity is 4%, what is the bond’s current yield?

A firm’s outstanding bonds have a $1,000 par value, are investment grade and mature in 6...

A firm’s outstanding bonds have a $1,000 par value, are investment grade and mature in 6 years. These bonds pay interest semiannually with a coupon of 8.0%. Assume that bond sells for $955.00. (a) What is the Yield-to-Maturity (YTM) bond? (b) What is the bond’s Current Yield? (c) What is the bond’s Capital Gains Yield? (d) Now, suppose the bond is trading at $1,150 and that the bond is callable in 2 years from now, at a call premium of...

Question 1 XYZ's corporate bonds mature in 20 years, have a par value of $1,000, and...

Question 1 XYZ's corporate bonds mature in 20 years, have a par value of $1,000, and an annual coupon rate of 8% (paid on an annual basis). The market requires an interest rate of 7% (annual) on these bonds. What is the bond's price (report answer as a positive number)? $1,066.32 $1,118.01 $1,241.89 $1,105.94 None of the above. Question 2 A corporate bond has a maturity of ten years, face value of $1,000, and an annual coupon rate of 6.75%....

SXS Companys bond mature in 8 years, have a par value of $1,000 and make an...

SXS Companys bond mature in 8 years, have a par value of $1,000 and make an annual coupon interest payment of $95. The market requires an interest rate of 4.2% on these bonds. What is the bonds price ?

The Garcia Company’s bonds have a face value of $1,000, will mature in 10 years, and...

The Garcia Company’s bonds have a face value of $1,000, will mature in 10 years, and carry a coupon rate of 19.0 percent. Assume interest payments are made semiannually. a. Determine the present value of the bond’s cash flows if the required rate of return is 19.0 percent. (Round factor value calculations to 5 decimal places, e.g. 0.52755. Round other intermediate calculations to 2 decimal places, e.g. 52.75. Round final answer to nearest dollar amount.) !!!!!ANSWER IS $1,000!!!! b. How...

Morin Company’s annual bonds mature in 8 years, have a par value of $1,000, and currently...

Morin Company’s annual bonds mature in 8 years, have a par value of $1,000, and currently sells for $903.04. The market requires an interest rate of 8.2% on these bonds. What is the bond’s coupon rate? 7.50% 7.25% 6.50% 6.25% 6.10%

Subjects