Bonaqua Alison Corporation Limited is planning to issue 10-year bonds with a face value of $1,000. The current market rate for similar bonds is 3.5%. Assume that coupon payments will be semi-annual. The company is trying to decide between issuing a 2.8% coupon bond or a zero coupon bond. The company needs to raise $2.5 million. a. What will be the price of the 2.8% coupon bonds? b. How many coupon bonds would have to be issued? c. Is the bond selling at a premium and why? d. What will be the price of the zero coupon bonds?

To make its bond offering attractive to investors, Creamy Crisp is attaching warrants. The bonds will have a 30-year maturity and semi-annual interest payments. Each bond will come with 15 warrants that give the holder the right to purchase one share of stock per warrant. The investment bankers estimate that each warrant will have a value of $10.00. A similar straight-debt issue would require a 9% per year yield. What annualized coupon rate should be set on the bonds-with-warrants so that the package would sell for $1,000? 7.64% per year O 3.77% per year O 3.58% per year O 7.55% per year O 8.42% per year 0730 4

CCC Co issues a bond today that will pay a coupon of 8%, twice a year. The yield to maturity for this company is 4.8%. Calculate the price of this bond if it matures in (a) 6 years, (b) 12, and (c) 22.5 years, knowing that its face value is GBP 10,000. What happens to the price of this bond if on the same day of the issue, the yield to maturity changes to 4.6%? What if the YTM changeis in the opposite direction, to 5%?  Please don't use excel shortcut formulas

Your company wants to raise $8.0 million by issuing 30-year zero-coupon bonds. If the yield to maturity on the bonds will be 5% (annual compounded APR), what total face value amount of bonds must you issue?

Builtrite needs to raise $2,000,000 for a plant improvement. It plans to sell $1000 par value bonds with a 10% coupon rate arde a 15 year maturity. Investors require a 9% rate of return. Calculate the market value of the bonds, what is the net price of the bonds if flotation costs are 5% of the market price?

Sunderland Company is issuing 8 yr bonds with a coupon rate of 5.9% and semiannual coupon pymts. If the current market rate for similar bonds is 8%... What will the bond price be? (Round intermediate calculations to 5 decimal places & the bond price to 2 decimal places.)   And if the company management wants to raise $1.25 million, how many bonds does the firm have to sell?

KroBank issues a zero coupon bond and it has to pay the face value of the bond  of  $100 M due in exactly five years.  Assuming interest rates are currently at 8% p.a., which of the following is the best investment option for the bank to ensure it has enough funds to meet the liability in five years: Invest $100M today in coupon-paying bonds paying 8% p.a. annual coupons with maturity of  7 years (duration is 5.62 years), sell the bonds in year 5. Invest $100M today in coupon-paying bonds paying 8% p.a. annual coupons with maturity of  6 years (duration is 4.99 years), sell the bonds in year 5. Invest $100 M today in coupon-paying bonds paying 8% p.a. annual coupons with maturity of  5 years (duration is 4.31 years). Invest $100 M today in coupon-paying bonds paying 8% p.a. annual coupons with maturity of 8 years (duration is 6.21 years), sell the bonds in year 5.

McCue Inc.'s bonds currently sell for $1,245. They pay a $80 annual coupon, have a 7-year maturity, and a $1,000 par value, but they can be called in 4 years at $1,080. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. What is the difference between this bond's YTM and its YTC? (Subtract the YTC from the YTM; it is possible to get a negative answer.) O 0.56% O 0.86% O 0.66% O 0.76% 0.96%

Dizzy Inc. wishes to issue new bonds but is uncertain how the market would set the yield to maturity. The bonds would be 20-year, 3.5% semi-annual coupon bonds with a $1,000 par value. Dizzy has determined that these bonds would sell for $887.45 each. Expressed as an annual percentage rate, what is yield to maturity for these bonds? 6.54% 9.54% 8.15% 7.35%

QAV Group wants to issue ninety 10-year, $1,000 zero-coupon bonds. If each bond is to yield 6%, how much will QAV receive when the bonds are first sold? be five years from now?