Each of the $1,000 face bonds pays interest semi-annually on 6/30 and 12/31 and had 15 years until maturity at the Spice acquisition date. The bond was originally issued when the market rate was 6% with a coupon rate of 5%. On 1/1/19, the market rate was 3%. what is the book value and fair value?
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- The Saleemi Corporation's $1,000 bonds pay 6 percent interest annually and have 11 years until maturity. You can purchase the bond for $1,155. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 3 percent?(b) Bluechip Company has TWO (2) bonds to evaluate and below are the information:- • Bond A has coupon rate of 10 percent and par value of RM1,000. The bond duration is 7 years with yield to maturity is 8 percent annually. • Bond B with coupon rate of 6 percent and yield to maturity is 10 percent. The maturity for bond is 5 years which paid semiannually. Evaluate the purchase price of both bonds and identify its relationship with the par value.Fingen's 16-year, $1,000 par value bonds pay 11 percent interest annually. The market price of the bonds is $1,090 and the market's required yield to maturity on a comparable-risk bond is 8 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond? What is your yield to maturity on the Fingen bonds given the market price of the bonds? __% (Round to two decimal places.)
- San Miguel Company's 18-year, $1,000 par value bonds pay 6.5 percent interest annually. The market price of the bond is $1,105, and your required rate of return is 8.5 percent. a. Compute the bond's expected rate of return. b. Determine the value of the bond to you given your required rate or return. c. Should you purchase the bond? Why or why not? (*You must show your calculation process as well.)A one-year premium bond with a face value of $10,000 has been purchased for $11,150. What is the yield to maturity? What is the yield on a discount basis?The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 9 years. The bond certificate indicates that the stated coupon rate for this bond is 8.2% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 9.3%, then this bond will trade at: A. a discount. B. a premium. C. par. D. none of the above