22. You are called in as a financial analyst to appraise the bonds of Olsen's Clothing Stores. The $1,000 par value bonds have a quoted annual interest rate of 10 percent, which is paid semiannually. The yield to maturity on the bonds is 10 percent annual interest. There are 15 years to maturity. a. Compute the price of the bonds based on semiannual analysis. b. With 10 years to maturity, if yield to maturity goes down substantially to 8 percent, what will be the new price of the bonds?

Ac

Ten bonds are purchased for $9,598.13 and are kept for 5 years. The bond coupon rate is 7% per year, payable semiannually. Immediately following the owner's receipt of the last coupon payment, the owner sells each bond for $50 less than its par value (price discount). The owner will invest in the bonds if the effective annual yield is at least 9%.What is the face value of each bond?______

(Related to Checkpoint 9.2) (Yield to maturity) Abner Corporation's bonds mature in 24 years and pay 14 percent interest annually. If you purchase the bonds for $900, what is your yield to maturity? Your yield to maturity on the Abner bonds is %. (Round to two decimal places.)

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Brandt Enterprises is considering a new project that has an estimated cost of $1,000,000 and cash inflows of $350,000 each year in next 5 years. The project’s WACC is 11%. After estimating the cash flows of the project, the CFO conducted a scenario analysis and found the CV (coefficient of variation) of the project’s NPV is 3.26.   Given that the CV of an average project of the company is in the range of 1.0 to 2.0, how will you interpret the result of the scenario analysis? If the CFO uses a subjective adjustment of 3% in the discount rate to differentiate projects with various risk levels, what will be the risk-adjusted NPV? What do you conclude from the calculation?

Your company has bonds that mature in 12 years and have a face value of $1,000. The bonds have an 8 percent semi-annual coupon (pays $40 every six months). The bonds may be called in five years. The bonds have a YTM of 7 percent and a yield-to-call of 8.62 percent. Determine the bonds' call price. O $1,100 O $1,080 O $1,160 O $1,140 O $1,120

(Related to Checkpoint 9.2) (Yield to maturity) Hoyden Co.'s bonds mature in 9 years and pay 8 percent interest annually. If you purchase the bonds for $725, what is their yield to maturity? The yield to maturity on the Hoyden bonds is%. (Round to two decimal places.)

Heather Smith is considering a bond investment in Locklear Airlines. The $1,000 par value bonds have a quoted annual interest rate of 9 percent and the interest is paid semiannually. The yield to maturity on the bonds is 12 percent annual interest. There are 9 years to maturity. Compute the price of the bonds based on semiannual analysis. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Bond price

(Related to Checkpoint 9.2) (Yield to maturity) Abner Corporation's bonds mature in 18 years and pay 13 percent interest annually. If you purchase the bonds for $925, what is your yield to maturity? Your yield to maturity on the Abner bonds is %. (Round to two decimal places.) C