LO 2 5. Coupon Rates. Barnes Enterprises has bonds on the market making annual payments, with 12 years to maturity, a par value of $1,000, and a price of $963. At this price, the bonds yield 6.14 percent. What must the coupon rate be on the bonds? .
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BOOK IS STATING THE CORRECT ANSWER IS 5.70 WHICH I DON'T UNDERSTAND WHEN TRYING TO SOLVE FOR PMT
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- Cost of debt. Kenny Enterprises has just issued a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 10.5% with semiannual payments. What is the cost of debt for Kenny Enterprises if the bond sells at the following prices? What do you notice about the price and the cost of debt? a. b. $1,000.00 c. $1,036.72 d. $1,161.82 $977.21Cost of debt. Kenny Enterprises has just issued a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 10.2% with semiannual payments. What is the cost of debt for Kenny Enterprises if the bond sells at the following prices? What do you notice about the price and the cost of debt? a. $938.10 b. $1,000.00 c. $1,041.98 d. $1,187.22 ..... a. What is the cost of debt for Kenny Enterprises if the bond sells at $938.10? % (Round to two decimal places.)Cost of debt. Kenny Enterprises has just issued a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 10.7% with semiannual payments. What is the cost of debt for Kenny Enterprises if the bond sells at the following prices? What do you notice about the price and the cost of debt? a. $967.34 b. $1,000.00 c. $1,045.83 d. $1, 189.10% (Round to two decimal places.)
- 8.4. Coupon Rates Rhiannon Corporation has bonds on the market with 11.5 years to maturity, a YTM of 6.8 percent, a par value of $1,000, and a current price of $1,055. The bonds make semiannual payments. What must the coupon rate be on these bonds?6. The Mariposa Co. has two bonds outstanding. One was issued 25 years ago at a coupon rate of 9%. The other was issued 5 years ago at a coupon rate of 9%. Both bonds were originally issued with terms of 30 years and face values of $1,000. The going interest rate is 14% today. a. What are the prices of the two bonds at this time? b. Discuss the result of part (a) in terms of risk in investing in bonds.15. Staind plc has 8.5 per cent coupon bonds on the market that have 10 years left to maturity. The bonds make annual payments. The par value of the bond is E1000. If the YTM on these bonds is 9.75 per cent, what is the current bond price? А. 922 В. 1200 C. 980 D. 1000
- (Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 9 percent interest annually and have 15 years until maturity. You can purchase the bond for $1,125. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 6 percent? a. The yield to maturity on the Saleemi bonds is %. (Round to two decimal places.)16. Steen Familie NV has bonds on the market making annual payments, with 13 years to maturity, and selling for €1,045. At this price, the bonds yield 7.5 per cent. The par value of the bond is €1000. What must the coupon rate be on the bonds? A. 8.05% B. 10% C. 7.5% D. 6%(Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 12 percent interest annually and have 11 years until maturity. You can purchase the bond for $945. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 14 percent? Question content area bottom Part 1 a. The yield to maturity on the Saleemi bonds is enter your response here%. (Round to two decimal places.)
- Glacier Industries has bonds on the market making annual payments, with 14 years to maturity, and selling for RM1,382.01. At this price, the bonds yield 7.5 percent. What is the coupon rate? Select one: A. 8.50 percent B. 12.00 percent C. 16.28 percent D. 10.50 percentHarrimon Industries bonds have 5 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 8%. a. What is the yield to maturity at a current market price of 1. $802? Round your answer to two decimal places. % 2. $1,049? Round your answer to two decimal places. % b. Would you pay $802 for each bond if you thought that a "fair" market interest rate for such bonds was 13%-that is, if rd = 13% ? I. You would not buy the bond as long as the yield to maturity at this price is less than the coupon rate on the bond. II. You would buy the bond as long as the yield to maturity at this price is greater than your required rate of return. III. You would buy the bond as long as the yield to maturity at this price is less than your required rate of return. IV. You would buy the bond as long as the yield to maturity at this price equals your required rate of return. V. You would not buy the bond as long as the yield to maturity at this price is…еВook Harrimon Industries bonds have 5 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 9%. a. What is the yield to maturity at a current market price of 1. $822? Round your answer to two decimal places. % 2. $1,107? Round your answer to two decimal places. % b. Would you pay $822 for each bond if you thought that a "fair" market interest rate for such bonds was 13%-that is, if ra = 13%? I. You would not buy the bond as long as the yield to maturity at this price is less than the coupon rate on the bond. II. You would buy the bond as long as the yield to maturity at this price is greater than your required rate of return. III. You would buy the bond as long as the yield to maturity at this price is less than your required rate of return. IV. You would buy the bond as long as the yield to maturity at this price equals your required rate of return. You would not buy the bond as long as the yield to maturity at this price is…