GAMA Corp has issued bonds that have a 10% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000 and a yield to maturity of 8.5% . What is the price of the bonds? Show calculation in excel for better understanding
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GAMA Corp has issued bonds that have a 10% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000 and a yield to maturity of 8.5% . What is the price of the bonds? Show calculation in excel for better understanding
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- Renfro Corporation’s bonds will mature in 10 years. The bonds have a face value of $1,000 and an 8% coupon rate, paid semiannually. The price of the bonds is $1,100. What is the bond’s yield to maturity, current yield and capital gains yield? how to calculate in excelAAA company plans to issue bonds to expand operations. The bonds will have a par value of $1,000, a 10-year maturity, and a coupon interest rate of 9%, paid semiannually. Current market conditions are such that the bonds will be sold to net $937.79. What is the yield-to-maturity of these bonds?Elliot Enterprises’ bonds currently sell for $1,150; have an 11% coupon interest rate and a $1,000 par value, pay interest annually, and have18 years to maturity. (i) Calculate the bonds’ current yield(ii) Calculate the bonds’ yield to maturity (YTM).(iii) Compare the YTM calculated in part (ii) to the bonds’ coupon interest rate and current yield calculated in part (i). Use a comparison of the bonds’ current price and par value to explain these differences.
- Elliot Enterprises' bonds currently sell for $1,150; have an 11% coupon interest rate and a $1,000 par value, pay interest annually, and have18 years to maturity. (i) Calculate the bonds' current yield (ii) Calculate the bonds' yield to maturity (YTM). (iii) Compare the YTM calculated in part (ii) to the bonds' coupon interest rate and current yield calculated in part (i). Use a comparison of the bonds' current price and par value to explain these differences.Pharaoh, Inc. has four-year bonds outstanding that pay a coupon rate of 7.0 percent and make coupon payments semiannually. If these bonds are currently selling at $918.32. What is the yield to maturity that an investor can expect to earn on these bonds? Assume face value is $1000. (Round to 1 decimal) Solve for yield to maturity What is the effective annual yield?Wildhorse, Inc., has four-year bonds outstanding that pay a coupon rate of 6.4 percent and make coupon payments semiannually. If these bonds are currently selling at $914.89. What is the yield to maturity that an investor can expect to earn on these bonds? Assume face value is $1,000. (Round answer to 1 decimal place, e.g. 15.2 %.) Yield to maturity % What is the effective annual yield? (Round answer to 1 decimal place, e.g. 15.2 %.) Effective annual yield %
- Suppose a firm is issuing 10,000 bonds. Each bond has a face amount of $950, a stated rate of 7.5%, and an 18-year term. When the bonds are issued, the market rate for similar bonds is 6.8%. What is the coupon (interest) payment of this bond? Based on the coupon (interest) payment found in (1.), what is the bond price when issued given the market rate of 6.8%? Based on your answer to (2.), explain why investors are either willing to pay more or less than the face amount of $950? How much capital does the firm raise assuming all 10,000 bonds are sold at the bond price you found in (2.)? Suppose after 8 years an investor decides to sell their bond for $925. What is the yield to maturity after 8 years given the bond price of $925? Based on the yield to maturity you calculated in (5.), is the bond at par, a premium bond, or a discount bond? Why? What is the bond price after the 8th year if the yield to maturity is 7.5%?Show all your work. The bonds issued by XYZ CO. currently sell for $1,020. They have a 8-year maturity, an annual coupon of $75, and a par value of $1,000. What are their current yield and capital gains yield during the current year?You are analyzing the cost of debt for a firm. You know that the firm’s 14-year maturity, 6.60 percent coupon bonds are selling at a price of $825.00. The bonds pay interest semiannually. If these bonds are the only debt outstanding, answer the following questions: What is the current YTM of the bonds?
