Birchip Wood Chip Ltd issued 15-year bonds one year ago at a coupon rate of 4.8%. The bonds have a face value of $1,000 and make half-year payments. If the YTM on these bonds is 5.3%, what is the current bond price?
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- Waylan Sisters Inc. issued 3-year bonds with a par value of $100,000 and a 6% annual coupon when the market rate of interest was 5%. If the bonds sold at 102.438, how much cash did Williams Sisters Inc. receive from issuing the bonds?Ninja Co. issued 14-year bonds a year ago at a coupon rate of 6.9 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.2 percent, what is the current bond price?Dufner Co. issued 15-year bonds one year ago at a coupon rate of 6.6 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.5 percent, what is the current dollar price assuming a par value of $1,000?
- Volbeat Corporation has bonds on the market with 30 years to maturity, a YTM of 6.2%, and a current price of $924. The bonds make semiannual payments. What must the annual coupon rate be on the bonds?Jones and Jones Co. issued 15-year bonds a year ago at a coupon rate of 4.1 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 4.5 percent, what is the current bond price?Rove Enterprises has bonds on the market making annual payments, with 10 years to maturity, and selling for $935. At this price, the bonds yield 6%. a) What is the value of the yearly coupon payment on Rove Enterprises' bonds? b) What must the coupon rate be on the bonds? c) Are the bonds of Rover Enterprises considered discount bonds or premium bonds and why?
- Grohl Co. issued 9-year bonds a year ago at a coupon rate of 7 percent. The bonds make semiannual payments. If the YTM on these bonds is 10 percent, what is the current bond price?Wesimann Co. issued 10-year bonds a year ago at a coupon rate of 8.8 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 7.1 percent, what is the current bond price?Sarkozi Watches SpA issued 15-year bonds two years ago at a coupon rate of 7.8 percent. The bonds make semiannual payments. If these bonds currently sell for 104 percent of par value, what is the YTM?
- Play Store Co. issued 10-year bonds one year ago at a coupon rate of 2.4%. The bonds make monthly payments. If the YTM on these bonds is 4.8%, what is the current bond price?Nikita Enterprises has bonds on the market making annual payments, with 16 years to maturity, a par value of $1, 000, and selling for $962. At this price, the bonds yield 8.5 percent. What must the coupon rate be on the bonds?Twalilwisha Limited has issued bonds with a face value of K100, which pay a coupon rate of 6%. Coupon payments are payable semi-annually. The yields on similar bonds are currently 8% per year. The maturity date is in 10 years’ time.(i) What is the value of each bond? (ii) What is the bonds annual effective rate?