1. Ozarks Managed Care Inc. issued some callable bonds 19 years ago with 30-year life at their par value of $1,000. These bonds pay 9% coupon rate with annual payment. The firm just announced that these bonds are being called with $100 call premium. A non- callable bond with the same features (time till maturity; coupon rate, and par value) and same risks are selling at $1195 a piece on the market today. What's the yield to maturity on the non-callable bonds? Please round your answer to 2 decimal places and skip the %sign, e.g. put 2.35 instead of 2.35%.
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- Rick Barr Properties has two bonds outstanding. Bond A was issued 15 years ago with a coupon rate of 8%. The other, Bond B, was issued 12 years ago with a coupon rate of 8%. Both bonds were originally issued as 30-year bonds with coupon payments made semi-annually. The current market rate (YTM) is 11%? What is the current price of Bond A? What is the current price of Bond B?One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 9.8% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity? Select the correct answer. a. $1,405.41 b. $1,415.82 c. $1,408.88 d. $1,401.94 e. $1,412.35One year ago, an annual coupon bond was issued by Company X with maturity period of 10 years at coupon rate of 8%. Face value of the bond is $1,000. The interest rate of similar kind of bonds in the market is 9.00%. What is the current price of the bond? a) $935.82 b) $1,000 c) $940.05 d) $949.67
- FinCon, Inc, a group of financial consultants, have $1,000 face value bonds that mature in 20 years. These bonds are are callable at a price of $1060 in 10 years. The bonds carry a 6% semi-annually, and currently sell for $1081. First, compute the yield to maturity and yield to call for the bonds. Then, indicate which one you would you expect to get, YTM or YTC? OYTM 5.34, YTC= 5.40, Expect YTC OYTM 4.96, YTC - 5.21, Expect YTC. OYTM 5.34, YTC 5.40, Expect YTM OYTM 1.34, YTC 1.35, Expect YTM OYTM 4.96, YTC= 5.21, Expect YTM. WBare trees united issued 20 year bonds 3 years ago at a coupon rate of 8.5 percent. The bonds make semiannual payments. If these bonds sell for 91.4 percent of par value, what is the ytm? Could you please show how to find this by using Excel? Thank you :)The Emory Corporation issued an 8%, 25-year bond 15 years ago. At the time of issue it sold for its par (face) value of $1,000. Comparable bonds are yielding 10% today. What must Emory’s bond sell for in today’s market to yield 10% (YTM) to the buyer? Assume the bond pays interest annually. Also calculate the bond’s current yield. a) Suppose the bond was issued 20 years ago what price must it be sold for today and also calculate the bond’s current yield b) Assume the bond was issued 5 years ago what price must it be sold for today and also calculate the bond’s current yield
- DM Inc.'s outstanding, callable bonds were issued seven years ago, with a coupon rate of 5%, original maturity of 25 years, par value of $1,000, gall price of $1,100 and 10 years of call protection. The bonds are currently selling for $1,200. Interest rates are expected to remain stable in the next few years. Calculate the return that an investor purchasing the bond today should expect to earn.A. 1.43%B. 3.45%C. 3.75% D. 3.84%7 years ago the Singleton Company issued 30-year bonds with a 12.5% annual coupon rate at their $1,000 par value. The bonds had a 7.5% call premium, with 3 years of call protection. Today Singleton called the bonds. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. 12.50% 13.22% 7.50% 14.13% JhyBANK ABC purchased a corporate bond with a coupon rate of 5.5% and a face value of $1000. It has 11 years to maturity and is currently selling in the market for $821.53. The bond makes annual coupon payments. BANK ABC is planning on selling this bond at the end of 5 years for $934.86 (ex-interest). What is the holding period yield (HPY) on this bond? 4.7% 5.5% 7% 8% 9% Give typing answer with explanation and conclusion
- Gayane Corporation just issued a 20-year, 12% semi-annual coupon bond. The bond is currently selling for $950 in the market. Suppose that the bond includes a call provision that allows the issuer to redeem the bonds after 7 years at the call price of $1,100. What is its yield to call? O A. 14.03% B. 15.21% C. 15.96% O D. 16.34% OE. 16.84%Potter & Lopez Inc. just sold a bond with 50 warrants attached. The bonds have a 20-year maturity and an annual coupon of 12%, and they were issued at their $1,000 par value. The current yield on similar straight bonds is 15%. What is the implied value of each warrant? a. $4.35 b. $4.56 c. $4.14 d. $3.94 e. $3.76 Please explain why PMT is -120.IS - Sampoerna. O Dashboard VitalSource Booksh. O Spotify - Web Player Company XYZ's bonds have 12 years remaining to maturity, interest is paid annually, the bonds have $1,000 par value, and the coupon rate is 8%. The bonds have a yield to maturity of 9%. What is the current market price of these bonds?* a. 828.78 b. 968.39 c. 1,000,00 d. 1,075.36 O e. none of the above Which of the following statement is (are) correct? a zero coupon bend means the bond does not give (pay) coupon until maturity O b. the price of zero coupon bond is always at discount until its maturity O c. the price of bond will be at discount when the coupon is lower than its interest ra da and b e. a, b and c