Hello, How do i solve this corporate finanace question without the use of excel. A financial calculator can be used if required. Can you please show each step in the calculation process? Find the annual rate of this coupon bond: A corporate bond with a face value of $1,000 and coupons paid semi-annually, sells for $1,058.39. The term to maturity is 15 years. The yield to maturity of similar bonds is 9.5%.
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Hello,
How do i solve this corporate finanace question without the use of excel. A financial calculator can be used if required. Can you please show each step in the calculation process?
Find the annual rate of this coupon bond: A corporate bond with a face value of $1,000 and coupons paid semi-annually, sells for $1,058.39. The term to maturity is 15 years. The yield to maturity of similar bonds is 9.5%.
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- How would you solve these using a financial calculator? What values would you enter for N, I/YR, PV, PMT, and FV? *assume corporate bonds pay 2x annually and have a FV on $1000 *MACRS table attached a) Calculate the YTM of a 20-year corporate bond with a market price of $1,020, interest rate of 4.5% with 15 years left to maturity. [YTM b) What is the MACRS depreciation for a 5-year property asset purchased for $50,000 in the 2nd year?Create an essay using the following information: Assume you are evaluating whether to purchase the following $1,000 face value bonds: Co. X bond with a 6% coupon rate that matures in 9 years. Co. Y bond with an 11% coupon rate that matures in 7 years. Also, you may wish to review https://t.ly/wJqNM and https://t.ly/2EX2k about corporate junk (junk bonds). Given the scenario and information about junk bonds, address the following: Value these bonds assuming a market rate on similar risk bonds is 7% and interest is paid annually. Value these bonds assuming a market rate on similar risk bonds is 7% and interest is paid semi-annually. Value these bonds assuming a market rate on similar risk bonds is 12% and interest is paid annually. Assuming both bonds were issued at the same time, why would the Co. Y bond pay a higher coupon rate?Hi, I'm working on this corporate finance question from my textbook. How do I solve it using formulas or the financial calculator? A bond promises a risk-free payment of $1000 in one year. The risk-free rate of interest is2.64%. a) What is the price of the bond? b) If the price of the bond is actually $960, what is the arbitrage strategy? Illustrate all cash flowstoday and one year from today.
- 3. Assume you purchased a bond for $9,186. The bond pays $300 interest every six months. You sell the bond after 18 months for $10,000. Calculate the following: a. Income. b. Capital gain (or loss). c. Total return in dollars and as a percentage of the original investment. Review Only Click the icon to see the Worked Solution. a. The current income is $ (Round to the nearest dollar.) b. The capital gain (or loss) is $ (Enter a loss as a negative number and round to the nearest dollar.) c. The total return in dollars is $ (Round to the nearest dollar.) The total return as a percentage of the original investment is %. (Enter as a percentage and round to two decimal places.)Answer the following question and show all working using a financial calculator. DO NOT use excel: a.The face value for WICB Limited bonds is $250,000 and has a 6 percent annual coupon. The 6 percent annual coupon bonds matures in 2035, and it is now 2020. Interest on these bonds is paid annually on December 31 of each year, and new annual coupon bonds with similar risk and maturity are currently yielding 10 percent. How much should Karen sell her bonds today?Suppose you purchase a T-bills that is 125 days from maturity for $9,765. The T-bills has a face value of $10,000.a. Calculate the T-bills’s quoted discount rate. b. Calculate the T-bills’s annualized rate.c. Who are the major issuers of and investors in money market securities?
- Your company is planning to issue new bonds soon. Your boss gives you the following informationand asks you to calculate the interest rate at which to issue the bonds. Given this information, whatinterest rate do you recommend? Expected Inflation Rate: 3% Interest rate of similar corporations' (AAA rated) 30-year bonds: 6.5% Interest rate of 30 - Year Treasury Bonds: 5.38% Interest rate of 3 -month treasury bills: 4.89% Liquidity - risk premium: 0.03 Instruction: Type ONLY your numericalanswer in the unit of dollars, NO $ sign, NO comma, and round to two decimal places. E.g., if youranswer is $7, 001.56, should type ONLY the number 7001.56, NEITHER 7,001.6, $7001.6, $7,001.6,NOR 7002. Otherwise, Blackboard will treat it as a wrong answer.Use of a financial calculator or Excel (functions PRICE and YIELD will be helpful) will be helpful to calculate the following problems. Show your work, include your calculator entries (i.e. N, PV, PMT, FV, IM, and/or Excel formulas where applicable. 1. Suppose there is a bond with a par value of $1,000 that matures in 6 years. Coupon payments are made annually. The coupon rate is 9%. It has a 12% yield to maturity. The annual coupon payments = $ b. The price of the bond today (present value) = $Suppose that you purchase a bond from a company that promises to pay $52.66 in coupon payments for the next 6 years, with a maturity bonus of $152.05 What is the total amount of money that this bond will pay out over its Motime? Round your answer to two (2) decimal places if necessary and do not include a dollar sign Plz do fast
- Answer the following question step by step using a financial calculator. Show all working: XYZ Inc. issued 20-yr bonds which pay semi-annual coupons of $60 and is currently selling at $1,000. The firm has decided to raise new funds using bond financing with maturity of 10 years, par value of $1,000 and semi-annual coupons of $80. How many new bonds must XYZ Inc. issue to raise a sum of $10,000,000 in case if we assume that both bonds have the same interest rate. Rounded to the nearest whole number.problems should be solved by using a financial calculator or MS excel spreadsheet. Accordingly, you must show the values of all relevant time valu of money variables Columbus Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 30 years. Their nominal yield to maturity is 10%, they pay interest quarterlly, and they sell at a price of $980. What is the bond's annual coupon interest rate?Hi can teach me how to solve the question step by step? TQ 2. suppose that the market interest rate is 5%. calculate the present value of the following. a. A coupon bond with an annual coupon payment of $135 and a face value of $1500 that matures in five years. b. A discount bond with a face value of $5000 that matures in one year. c. A fixed payment loan with annual payments of $163 that matures in three years.