A company issued bonds with 7.7% coupons paid annually (once per year), $1,000 face value, and 10 years left to maturity. If the YTM in the market for similar bonds is 9.7%, what is the current bond price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 12.34.) Current bond price
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- Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual coupon (payable June 30 and December 31) on January 1, 2018, when the market rate of interest was 10%. Were the bonds issued at a discount or premium? Assuming the bonds sold at 92.288, what was the sales price of the bonds?Marshall Company is issuing eight-year bonds with a coupon rate of 6.19 percent and semiannual coupon payments. If the current market rate for similar bonds is 9.23 percent. What will be the bond price? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and bond price to 2 decimal places, e.g. 15.25.) Bond price $ ___________ If the company wants to raise $1.25 million, how many bonds does the firm have to sell? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and number of bonds to 0 decimal places, e.g. 5,275.) Number of bonds _____________ BondsMarshall Company is issuing eight-year bonds with a coupon rate of 6.19 percent and semiannual coupon payments. If the current market rate for similar bonds is 9.23 percent. a). What will be the bond price? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and bond price to 2 decimal places, e.g. 15.25.) Bond price $ ________________ b). If the company wants to raise $1.25 million, how many bonds does the firm have to sell? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and number of bonds to 0 decimal places, e.g. 5,275.) Number of bonds ____________bonds?
- Langford Co. Issued 14-year bonds a year ago at a coupon rate of 8.8%. The bonds make semiannual payments. If the YTM on these bonds Is 7.1%, what is the current bond price? (Do not round Intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) Current bond priceYou issued debt in the form of bonds, with a face value of $1,000, and have 9 years until maturity. The bonds have an annual coupon rate of 7.8%, which are paid semiannually. a. The current price is $1,100. What is the pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g 12.34.) b. The tax rate is 22%. What is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34.)The following table gives the prices of bonds Bond Principal ($) Time to maturity Annual coupon ($) Bond Price ($) 100 (years) 0.5 100 1 100 100 1.5 2 The bonds provide coupon are semiannual coupon bond a. Calculate 6-month, 12-month, 18-month and 24-month zero rates. 1567 0 98 100 100 101 b. What is the forward rate for the six-month period beginning in 12 months. c. Estimate the price of a two-year bond providing annual coupon of 7% annually.
- A firm issued bonds that will pay $1000 with certainty in one year. The market price was $970. If you purchased one of those bonds, what is the yield in percent, on the bond held to maturity? Round to one decimal place and do not enter the % sign. If your answer is 1.333%, enter 1.3. If your answer is 1.666%, enter 1.7. If appropriate, remember to enter the sign.Sandhill Company is issuing eight-year bonds with a coupon rate of 6.8 percent and semiannual coupon payments. If the current market rate for similar bonds is 10 percent. Assume face value is $1,000. What will the bond price be? (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and bond price to 2 decimal places, e.g. 15.25.) Bond price $ If company management wants to raise $1.25 million, how many bonds does the firm have to sell? (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and number of bonds to O decimal places, e.g. 5,275.) Number of bondsYou issued debt in the form of bonds, with a face value of $1,000, and have 12 years until maturity. The bonds have an annual coupon rate of 8.4%, which are paid semiannually. a. The current price is $1,115. What is the pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34.) b. The tax rate is 25%. What is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34.) a. Pretax cost of debt b. Aftertax cost fo debt % %
- Carla Vista Corp is issuing a 10-year bond witha coupon rate of 10 percent. The interest rate for similar bonds is currently 6 percent. Assuming annual payments, what is the value of the bond? (Round answer to 2 decimal places, e.g. 15.25.) Value of bond %24 eTextbook and Media %24Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100 Bond Coupon (X) Price X) 89.00 10.00 139.00 10 o. What is the yield to maturity of each bond? (Do not round intermediate calculations. Enter your enswers es a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. Bond Coupon (%) YIM 434 % 4.04 O% 5.10 O% 10 b. What is the duration of each bond? (Do not round intermediete celculations. Round your enswers to 2 decimal places.) Answer is complete but not entirely correct. Bond Duration Coupon () 873 years 3. 817 years 10 7.19 CyearsAssume coupons are paid annually. Here are the prices of three bonds with 10 year maturities. Assume face value is $100. Bond Coupon a. What is the yield to maturity of each bond? b. What is the duration of each bond? Complete this question by entering your answers in the tabs below. Required A Required B What is the duration of each bond? Note: Do not round intermediate calculations. Round your answers to 2 decimal places.