Determining values: Convertible bond Craig's Cake Company has an outstanding issue of 15-year convertible bonds with a $1,000 par value. These bonds are con vertible into 80 shares of common stock. They have a 13% annual coupon interest rate, whereas the interest rate on straight bonds of similar risk is 16

Twenty-five-year B-rated bonds of Parker Optical Company were initially issued at a 12 percent yield and 12 percent coupon. After 12 years the bonds have been upgraded to Aa2. Such bonds are currently yielding 10 percent to maturity. Use Table 16-2. Determine the price of the bonds with 15 years remaining to maturity.   Price of the bonds

On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.625%. The purchase price was 89.875, and the commission was $8 per bond. Bonds from this particular company pay interest on February 1 and August 1. (a)What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) 10.7  % (b)What is the total purchase price (in $) of the bonds? (Round your answer to the nearest cent.) $   (c)If Wayne sold the bonds on November 1 for 94.875, what are the proceeds (in $) from the sale? (Round your answer to the nearest cent.) $

Intro Lomack Company's bonds have a 8-year maturity, a 9% coupon, paid semiannually, and a par value of $1,000. The market interest rate is 4%, with semiannual compounding. Part 1 What is the bond's value (in $)? 0+ decimals Submit

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PRACTICE QUESTIONS 1-3 1.A company issued 5%, 20-year bonds with a face amount of $80 million. The market yield for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price did the bonds sell? 2.A company issued 6%, 15-year bonds with a face amount of $75 million. The market yield for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price did the bonds sell? 3. A company issued 5%, 20-year bonds with a face amount of $100 million. The market yield for bonds of similar risk and maturity is 4%. Interest is paid semiannually. At what price did the bonds sell?

The yield to maturity for 25-year bonds is as follows for four different bond rating categories. AAA 10.20% A 10.40 888 10.80% 12,00 The bonds of Falter Corporation were rated as A and issued at par a few weeks ago. The bonds have just been downgraded to BBB. Determine the new price of the bonds, assuming a 25-year maturity and semiannual interest payments. Assume the par value of the bonds is $1,000. (Use a Financial calculator to arrive at the answers. Round the final answer to 2 decimal places.) Price of the bonds

On January 2, Year 3, JRCorp purchases a 5-year $100,000 face value, 4 percent fixed coupon bond paying annual interest when market rates at issuance for comparable bonds are 5 percent. The bond cost $95,671 at purchase and one year later, the market price was $94,742. Market rates most likely: Decreased by 0.5 percent. Increased by 0.5 percent. OC. Increased by 5.5 percent. O D. Decreased by 5.5 percent. A. OB. What is the calculations to derived at an increase of 5% for market rates.

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profile-image Sunny issued a convertible bond on January 1, 20X8, for $1,000,000, which is the face value of the bonds. The bonds are convertible into 20,000 common shares and pay interest annually on December 31 at a rate of 29%. Similar bonds without a conversion feature are priced to yield 6%. The bonds mature in seven year   What is the interest expense recognized for 20X9 related to this bon   a $48,1   b. $40,0   c. $46,0   d $60,0 00980098d?s   d $60,000