A company is offering bonds that pay $100 per year indefinitely. If you require a 12% return on these bonds—that is, the discount rate is 12%—what is the value of each bond?

The Saleemi​ Corporation's ​$1,000 bonds pay 6 percent interest annually and have 15 years until maturity. You can purchase the bond for ​$1,155.   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?       Question content area bottom Part 1 a.  The yield to maturity on the Saleemi bonds is enter your response here​%. ​

A company considers issuing a 5-year bond with a face value of $1,000 and annual coupon payments. The interest rate is 3% per year. If the company aims to raise $1,100 today through this bond, what should the coupon rate be? 2.15% per year 2.84% per year 3.54% per year 5.18% per yea

If a 5 year annual bond with a 6% coupon rate, currently priced at $988 and par value is $1000, what is the cost of debt before tax? For the question above, if the tax rate is 30%, how much is the after tax cost of debt?

An insurance company is analyzing two bonds and is using duration as the measure of interest rate risk. Both the bonds trade at a yield to maturity of 8 percent, have $10,000 par values, and have five years to maturity. The bonds differ only in the amount of annual coupon interest that they pay: 5 and 7 percent. What is the duration for each five-year bond?

Assuming you want to purchase a 5 year bond that has a face value of $20,000 that pays 12% interest. How much are you willing to pay for this bond assuming the market rate is 12%

Apple would like to issue a 10 year bond with $1,000 face value. The coupon rate is 5.5%, and is paid semiannually. The bond is expected to sell at $975. The issued cost is 3% of the total bond value. What is the yield to maturity of this bond?

You need to know the yeild to maturity on your company's debt. The quoted bond is 103.425, the stated coupon rate is 5.68% and the coupons are paid semiannually. The bond matures in 10 years. Calculate the yeild to maturity.

San Miguel Company's 18-year, $1,000 par value bonds pay 6.5 percent interest annually. The market price of the bond is $1,105, and your required rate of return is 8.5 percent. a. Compute the bond's expected rate of return. b. Determine the value of the bond to you given your required rate or return. c. Should you purchase the bond? Why or why not? (*You must show your calculation process as well.)

You wish to purchase some 25-year - maturity strip bonds with the $11,874 in cash you now have. If these strip bonds are currently priced to yield 2.125% compounded semiannually, how many $1000 denomination bonds can you purchase? a 5 bonds b 8 bonds c 6 bonds d 14 bonds e 7 bonds