Corporation Ltd. have 6% coupon bonds traded on the market that have 5 years left to maturity. The face value is £1,000 and coupon payments are made annually. If investors require a rate of return of 10% then the current bond price, to the nearest whole pound, is: a. £848 b. £227 c. £885 d. £1,076 e. None of the above
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Corporation Ltd. have 6% coupon bonds traded on the market that have 5 years left to
maturity. The face value is £1,000 and coupon payments are made annually. If investors
require a rate of return of 10% then the current
a. £848
b. £227
c. £885
d. £1,076
e. None of the above
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- Corporation Ltd. have 6% coupon bonds traded on the market that have 5 years left to maturity. The face value is £1,000 and coupon payments are made annually. If investors require a rate of return of 10% then the current bond price, to the nearest whole pound, isXYZ pty Ltd is considering investing in one of two outstanding bonds. The bonds offer 11% coupon interest rates and pay annual interest. Bond A has exactly 5 years to maturity and bond B has 15 years to maturity. You are appointed to evaluate the bond. Calculate the value of bond A and B if the required return (YTM) is 9% A. R1077.79 & R1261.21 Respectively B. R1177.79 & R1161.21 Respectively C. R1 077.79 & R1 161.21 Respectively D. R1095 & R1161.21 RespectivelyBernard co. has 7% coupon bonds on the market that have 13 years left to maturity. The bonds will make annual payments. If the YTM on these bonds is 6%, what is the current bond price (in $ dollars)? (Assume the face value of the bond is $1,000) $. A Moving to another question will save this response. « < Question 27 of 30 ロ× F2 Esc DII FS F1 F3 F4 F6 @ 3 6. %24 %23
- Baywa has an outstanding bond that has a coupon rate of 8.3%. What is the market price of this bond if it pays interest semiannually, has 15 years to maturity, and the current required rate of return is 9% on bonds of similar quality? a. $954 b. $1059 c. $1,000 d. $943Wee Beastie Animal Farm bonds have 7 years to maturity and pay an annual coupon at the rate of 6.3%. The face value of the bonds is $1,000. The price of the bonds is $1,049.57 to yield 5.43%. What is the capital gain yield on the bonds? The capital gain yield is: (Select the best choice below.) A. +0.61% B. −0.57% C. +0.62% D. −0.63%Your company wants to raise $8.5 million by issuing 10-year zero-coupon bonds. If the yield to maturity on the bonds will be 5% (annual compounded KAPR), what total face value amount of bonds must you issue? ve this 6 F V The total face value amount of bonds that you must issue is $. (Round to the nearest cent.) View an example Get more help. G B.B % 5 T G 1 B A 6 Y H ☐ MacBook Pro N & 7 U J * 8 M Ⓒ K ( 9 H 15 X 1 option Clear all + = Check answer delete retur
- Zanobia Co.'s bonds currently sell for $1,150. They have a 8% annual coupon rate (but paid semiannually) and a 30-year maturity, and are callable in 10 years at $1,100. What is the yield to call of the bonds? Select one: O a. 6.64% O b. 4.34% O c. 4.57% O d. 4.12% e. 3.92% 4You want to find the value of a corporate bond with an annual coupon rate of 6%, making semi-annual coupon payments for 7 years, after which the bond matures, and the principal must be repaid. Assume a current YTM of 7%. (round to the nearest cent){DO INCLUDE COMMAS OR $}a) A Zero Coupon Bond with face value £100 and maturity in 4 years is sold for £85. Find its (gross) yield. (b) The same bond as in (a) pays capital gains tax at 20%. What is its net yield? (c) Find the price of a bond whose face value is £100, it pays semi-annual coupons at a rate of 1.5% p.a., it has maturity in 3 years and produces a yield of 3% p.a. effective. The bond is redeemable at par.
- A $1,000 per value bond with a 5.8% coupon and semi-annual interest payments has 25 years to maturity. If the bonds are currently trading for $1,122.75, what is the cost of debt for the firm? 4.94% 5.12% 4.93% 4.50% 6.02%1. You are financial advisor for a friend who addresses the following issues: a) A company issues £10m face value of five-year zero-coupon bonds when the interest rate is 6%. What is the initial price of the bond? b) A coupon bond of £100 pays annual coupons of 5% at the end of years 1, 2 and 3 (when it also matures). If the discount rate is 8%, what is its price today? c) A coupon bond of £100 pays annual coupons of 5% at the end of years 1 and 2 (when it also matures). If it trades today at £93.01, what is its yield to maturity?Small industries’ bonds sell for £885. They will mature in 8 years-time, and offer a yield to maturity of 8%. What is the coupon rate of the bond? Assume a nominal value of £1,000.