Five years ago (t=0), Cooper Inc. issued a 20-year zero-coupon bond with a yield to maturity of 10%. The face value of the bond is $1,000. Because of the operation improvement, the yield to maturity now drops to 6%. What is the bond price today (t=5)? Assume compounded semi-annually. A. $239.39 B. $231.38 C. $306.56 D. $411.99

Rahul

Company Z bonds have an $1000 par value and they mature in 30 years the nominal annual yield to maturity is 8.25% but they pay interest semi annually and their current price is $875. what is the bonds nominal coupon interest rate?

Lourdes Corporation's 14% coupon rate, semiannual payment, $1,000 par value bonds, which mature in 30 years, are callable 6 years from today at $1,075. They sell at a price of $1,422.83, and the yield curve is flat. Assume that interest rates are expected to remain at their current level. a. What is the best estimate of these bonds' remaining life? Round your answer to the nearest whole number. years b. If Lourdes plans to raise additional capital and wants to use debt financing, what coupon rate would it have to set in order to issue new bonds at par? I. Since the bonds are selling at a premium, the coupon rate should be set at the going rate, which is the YTC. II. Since the bonds are selling at a premium, the coupon rate should be set at the going rate, which is the YTM. III. Since Lourdes wishes to issue new bonds at par value, the coupon rate should be set the same as that on the existing bonds. IV. Since Lourdes wishes to issue new bonds at par value, the coupon rate should be set…