(Bond valuation-zero coupon) The Latham Corporation is planning on issuing bonds that pay no interest but can be converted into $1,000 at maturity, 7 years from their purchase. To price these bonds competitively with other bonds of equal risk, it is determined that they should yield 5 percent, compounded annually. At what price should the Latham Corporation sell these bonds? ACCESS The price of the Latham Corporation bonds should be $ (Round to the nearest cent.)

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(Bond valuation-zero coupon) The Latham Corporation is planning on issuing bonds that pay no interest but can be converted into $1,000 at maturity, 5 years from their purchase. To price these bonds competitively with other bonds of equal risk, it is determined that they should yield 7 percent, compounded annually. At what price should the Latham Corporation sell these bonds? G The price of the Latham Corporation bonds should be $. (Round to the nearest cent.)

Uliana Company wants to issue new 19-year bonds for some much-needed expansion projects. The company currently has 10.3 percent coupon bonds on the market that sell for $1,143, make semiannual payments, have a par value of $1,000, and mature in 19 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Answer is complete but not entirely correct.

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%

Kevin Rogers is interested in buying a five-year bond that pays a coupon of 8.5 percent on a semiannual basis. The current market rate for similar bonds is 6.9 percent. What should be the current price of this bond? (Do not round intermediate computations. Round your final answer to the nearest dollar.) O $1,067 O $1,099 O $965 O $982

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Uliana Company wants to issue new 15-year bonds for some much-needed expansion projects. The company currently has 7 percent coupon bonds on the market that sell for $1,060, have a par value of $1,000, make semiannual payments, and mature in 15 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Coupon rate %

The Chief Financial Officer of a company would like to raise money for new equipment by floating a new bond issue.  The CFO would like to receive $1000 (full face value) for each of the bonds she sells.  After collecting the below bond market data, and if the bonds carry a rating of A and have a term of 10 years, what coupon rate should be included in the bond contract?   Assume an annual coupon payment.      Security& Rating          Maturity Face     Coupon     Price  Treasury    1 $    1,000    0.00% $     965.00  Treasury    3 $    1,000    1.90% $     939.06  Treasury    5 $    1,000    4.30% $     932.42  Treasury   10 $    1,000    6.80% $   1,007.12  Treasury   15 $    1,000    6.60% $     908.25  CorpA  A   5  $    1,000    8.10% $     990.00  CorpB  BB  10 $    1,000    7.90% $     859.88  CorpC  AA  15 $    1,000    7.00% $     660.00