Global Trade, Inc. has $1,000 face value bonds outstanding with a market price of $983. The bonds pay interest annually, mature in 20 years, and have a yield to maturity of 8 percent. What is the current yield? 0% Allowed attempts: 3 Check Answer
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- Yield to Maturity and Yield to Call Arnot International’s bonds have a current market price of $1,200. The bonds have an 11% annual coupon payment, a $1,000 face value, and 10 years left until maturity. The bonds may be called in 5 years at 109% of face value (call price = $1,090). What is the yield to maturity? What is the yield to call if they are called in 5 years? Which yield might investors expect to earn on these bonds, and why? The bond’s indenture indicates that the call provision gives the firm the right to call them at the end of each year beginning in Year 5. In Year 5, they may be called at 109% of face value, but in each of the next 4 years the call percentage will decline by 1 percentage point. Thus, in Year 6 they may be called at 108% of face value, in Year 7 they may be called at 107% of face value, and so on. If the yield curve is horizontal and interest rates remain at their current level, when is the latest that investors might expect the firm to call the bonds?Current Yield for Annual Payments Heath Food Corporations bonds have 7 years remaining to maturity. The bonds have a face value of 1,000 and a yield to maturity of 8%. They pay interest annually and have a 9% coupon rate. What is their current yield?Wilson Wonders bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value and the coupon interest rate is 10%. The bonds sell at a price of $850. What is their yield to maturity. show YTM calculation not excel formula
- Smooth Sailing Warehouse wants to issue 15-year, zero coupon bonds that yield 7.50% with semi-annual compounding. What price should it charge for these bonds if the face value is $1,000? Group of answer choices $331.40 $337.97 $362.14 $369.94Dry Seal plans to issue bonds to expand operations. The bonds will have a par value of P1,000, 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 P937.79. What is the yield-to-maturity of these bonds? Group of answer choices 8% 10% 9% 11%Harrimon Industries bonds have 6 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 10%. a. What is the yield to maturity at a current market price of $1,166 Show working without using excel please
- A company is going to undertake an issue of $100 million of high yield bonds, with a maturity of 5 years. The bonds are rated BB. The coupon on the bonds is 5%, paid semi-annually. The underwriter is charging a commission of 2%. What is the effective yield on the bonds, from the company's point of view? Group of answer choices 5.46 % 7.00% 5.75% 2.73%Your company currently has 7% coupon-rate bonds ( coupons are paid semi - annually) with ten years to maturity and a price of $ 1089. If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to set? (Assume that for both bonds, the next coupon payment is due in exactly 6 months.) Question content area bottom Part 1 You need to set a coupon rate of enter your response here %please solve a,b,c. CTI Inc. issues 500 callable bonds with par value of $1,000. This callable bond pays 20% annual coupon and matures in 20 years. Its yield is 16% and it is callable at the end of year 5 at par value plus one additional coupon payment. Yield at end of Year 5 Probability 30% 40% 20% 30% 10% 30% a) What is the price of the bond if it were not callable? b) What is the price of the callable bond? c) Assume at the end of year 5, CTI calls the bonds and replaces them by a 15-year bond selling at par. The flotation cost is 1% of the par value. CTI has to issue the new bonds one month before calling. During the month, the proceeds will earn 4% per year. The tax rate is 0.3. What is the NPV of refunding?
- dieH uoisenn Your company wants to raise $9.0 million by issuing 20-year zero-coupon bonds. If the yield to maturity on the bonds will be 4% (annual compounded APR), what total face value amount of bonds must you issue? The total face value amount of bonds that you must issue is $ (Round to the nearest cent.) Enter your answer in the answer box and then click Check Answer.The $1,000 face value bonds of Galaxies International have coupon of 6.45 percent and pay interest semiannually. Currently, the bonds are quoted at 103.4% of face value and mature in 8 years. What is the yield to maturity? Select one: a. 3.39 percent b. 5.78 percent c. 7.88 percent d. 4.99 percent e. 5.92 percentACB Products has a bond issue outstanding with 8 years remaining to maturity, a coupon rate of 10 percent with interest paid annually, and a par value of $1,000. If the current market price of the bond issue is $814.45, what is the yield to maturity, rd. Question 6 Select one: a. 14% b. 16% c. 12% d. 15% e. 13%If you think you can sell an asset for $15,000 in eight (8) years and you think the appropriate discount rate is 5%, how much would you be willing to pay for the asset today? Question 7 Select one: a. $15,000 b. $10,153 c. $11,236 d. $15,771.00 e. None of the above