Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Jones and Jones Co. issued 15-year bonds a year ago at a coupon rate of 4.1 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 4.5 percent, what is the current
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- Nikita Enterprises has bonds on the market making annual payments, with 16 years to maturity, a par value of $1, 000, and selling for $962. At this price, the bonds yield 8.5 percent. What must the coupon rate be on the bonds?arrow_forwardPage Enterprises has bonds on the market making annual payments, with eight years to maturity, and selling for $1,092.99. At this price, the bonds yield 5.16 percent. What must the coupon rate be on the bonds?arrow_forward3) Sari Minerals Co. issued 15-year bonds three years ago with a coupon rate of 5%. These bonds make semiannual payments. If these bonds are currently selling for $950, what is their Yield to Maturity (YTM)arrow_forward
- Ytmarrow_forwardParkway Void Co. issued 15-year bonds two years ago at a coupon rate of 9.9 percent. The bonds make semiannual payments. If these bonds currently sell for 99 percent of par value, what is the YTM?arrow_forwardWeismann Company issued 14-year bonds a year ago at a coupon rate of 10 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 8 percent, what is the current bond price?arrow_forward
- Westco Company issued 11-year bonds a year ago at a coupon rate of 8.3 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 6.6 percent, what is the current bond price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)arrow_forwardFive years ago, XYZ company issued K10000 (ten thousand). 20-year, K1000 par value bonds at par. At that time the market rate for such bonds was at 8%. The coupon is paid annually. Today the actual market value of all the bonds together is K11,942,450. What is the yield to maturity of these bondsarrow_forwardDufner Co. issued 17-year bonds one year ago at a coupon rate of 6.8 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.4 percent, what is the current dollar price assuming a par value of $1,000? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current bond pricearrow_forward
- Westco Company issued 15-year bonds a year ago at a coupon rate of 8.1 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 6.4 percent, what is the current bond price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current bond pricearrow_forwardMellon Corporation has bonds outstanding on the market with 15 years to maturity. The bonds have the following information: a YTM of 6%, a par value of $1,000, and a current price of $1,125. The bonds make quarterly payments. What is the coupon rate on these bonds?arrow_forwardMcCue Inc.'s bonds currently sell for $1,250. They pay a $120 quarterly coupon, have a 15.5 semesters maturity, and a $1,000 par value, but they can be called in 5.25 years at $1,050. What is the difference between this bond's YTM and its YTC?arrow_forward
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