Question 6 Dubai Properties pic has in issue 5% convertible debt with 8 years to redemption (at par or by converting £1,000 to 9 shares). The bond can only be converted at maturity. The bonds are trading at a yield of 6.7%. Dubai Properties' shares are currently trading at £83.20 and are expected to increase in value by 6% a year over the next 8 years. The bond has just paid a coupon and there is no accrued interest to account for. The lowest value the bond can have today today is: Question 6 options: £897.30 £975.20 £902.1 £1012.46 £1109.32
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- Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 10% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000, and a yield to maturity of 8.5%. What is the price of the bonds?QUESTION 1 MaNga Inc. bonds have a current market price of $1,128.87 the bonds have an 9% annual coupon payment, a $1,000 face value, and 12 years left until maturity. The bonds may be called in 3 years at $1,125. What yield might investors expect to eam on these bonds? @7% 4.42% 7.16% 4.33%Question 1: Two $900 par value bonds are bought to be redeemed at the end of the same period and to yield an annual nominal rate of 5% convertible semi-annually. The price of the first bond is $1027.63 and has a coupon rate of 6%. The second bond has a coupon rate of 3%. What is the price of the second bond? A) 644.74 B) 859.65 C) 429.83 D) 967.11 E) 322.37
- Activity 2 XYZ Co. Ltd is considering investing in a bond currently selling for $8,800. The coupon rate is 8%. The bond has a face value of $10,000 and maturity of 4 years. The appropriate discount rate for bonds of this type is 10%. (i) What is the intrinsic value of the bond? Should the company buy the bond? (ii) What is the yield to maturity on this bond?Question 3 (Bond and Equity Valuation) Bond A is a $1,000, 6% quarterly coupon bond with 5 years to maturity. (a) If you bought Bond A today at a yield (APR) of 8%, what is your purchase price? Is this a premium or discount bond? Why? (b) One year later, Bond A's YTM (APR) has gone down to 6% and you sell it immediately after receiving the coupon. (i) What is the current yield? (ii) What is the capital gains yield? (iii) What is the one-year total rate of return (in APR) if the coupons are reinvested at 2% per quarter during the holding period? (iv) Can Bond A’s one-year total rate of return be determined correctly by simply adding up the current yield and the capital gains yield? Explain your answer without calculations.Problem 1 Dundee Inc. bonds are currently selling for $1,250. They pay an annual coupon of $90, have a maturity of 25 years and a face value of $1,000, but can be redeemed in 5 years at $1,050. What is the difference between the YTM of this bond and its YTC? Problem 2 Gross Nickle Corporation issued 20-year 7.5% annual coupon bonds at $1,000 face value a year ago. Today, the YTM of these bonds is 5.5%. What is the current price of the bonds?
- Intro A corporate bond has 2 years to maturity, a coupon rate of 8%, a face value of $1,000 and pays coupons semiannually. The market interest rate for similar bonds is 0.095. Part 1 What is the price of the bond (in $)? 977.44 Correct ✓ Attempt 1/10 for 10 pts. Since market interest rates (or yields or yield to maturity), are quoted as bond equivalent yields (a type of APR), we need to divide the quoted rate by 2: Period rate: 0.095 = 0.0475 2 The 6-monthly interest payment, or coupon, is: Coupon rate 0.08 Coupon = Face value= 2 21,000 = 40 Bond price: Coupon Par value Р T + r (1+r) (1+r)* 40 0.0475 1 1,000 4+ (1+0.0475) (1+0.0475) = 973.25 Part 2 What is the bond's duration? 2+ decima Submit Part 3 Attempt 2/10 for 9.5 pts. Attempt 1/10 for 10 pts. If yields fall by 0.8 percentage points, what is the new expected bond price based on its duration (in $)? 0+ decima Submit Part 4 Attempt 1/10 for 10 pts. What is the actual bond price after the change in yields (in $)? 0+ decima Submit…QUESTION 1 Kinetik Bhd issued bonds with 11 years remaining to maturity. Interest is paid semi-annually and the bond has a coupon rate of 9% and a par value of RM1,000. The bond sells for RM1,200. a. Calculate the yield to maturity. b. Calculate the current yield?Fingen's 18-year, $1,000 par value bonds pay 13 percent interest annually. The market price of the bonds is $1,140 and the market's required yield to maturity on a comparable-risk bond is 10 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond? Question content area bottom Part 1 a. What is your yield to maturity on the Fingen bonds given the market price of the bonds? enter your response here%
- Fingen's 16-year, $1 comma 000 par value bonds pay 14 percent interest annually. The market price of the bonds is $1 comma 070 and the market's required yield to maturity on a comparable-risk bond is 11 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond? Question content area bottom Part 1 a. What is your yield to maturity on the Fingen bonds given the market price of the bonds? enter your response here%Question A .Your company currently has $1,000 par, 6.25% coupon bonds with 10 years to maturity and a price of $1,071. If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to set? Assume that for both bonds, the next coupon payment is due in exactly six months. You need to set a coupon rate of _ % (Fill in the _) Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this lineQ1 J Corporation issued zero-coupon bond, it will mature in 6 years and pay the face value of OMR 100. The initial price of the bond gave 9.5% return to investors. What is the present price of this bond issue? a. OMR 51.282 b. OMR 18.188 c. OMR 58.011 d. OMR 91.324