Midland Oil has $1,000 par value bonds outstanding at 18 percent interest. The bonds will mature in 25 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the current price of the bonds if the present yield to maturity is: (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.) Bond Price a. 10 percent b. 11 percent c. 15 percent 69 69 69

Midland Oil has $1,000 par value bonds outstanding at 18 percent interest. The bonds will mature in 25 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the current price of the bonds if the present yield to maturity is: (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.) Bond Price a. 10 percent b. 11 percent c. 15 percent 69 69 69

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Please show complete steps using both formula dn financial calculator. The Lone Star Company has $1,000 par value bonds outstanding at 9 percent interest. The bonds will mature in 19 years. Calculate your final answer using both the formula and financial calculator methods. Compute the current price of the bonds if the present yield to maturity is. (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.) What is the bond price at. . . a. 6 percent b. 8 percent c. 12 percent.
Essex Biochemical Company has a $1,000 par value bond outstanding that pays 10 percent annual interest. The current yield to maturity on such bonds in the market is 8 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the price of the bonds for the maturity dates: Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual. a: 30 years b: 16 years c: 1 years
The Lone Star Company has $1,000 par value bonds outstanding at 10 percent interest. The bonds will mature in 18 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the current price of the bonds if the present yield to maturity is. Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual. a. 7 percent b. 8 percent c. 13 percent Bond Price I
Midland Oil has $1,000 par value bonds outstanding at 16 percent interest. The bonds will mature in 25 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the current price of the bonds if the present yield to maturity is: Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual. a. 15 percent Bond Price S b. 14 percent c. 16 percent
The Pioneer Petroleum Corporation has a bond outstanding with an $80 annual interest payment, a market price of $800, and a maturity date in four years. Assume the par value of the bond is $1,000. Find the following: Note: Use the approximation formula to compute the approximate yleld to maturity and use the calculator method to compute the exact yleld to maturity. Do not round Intermediate calculations. Input your answers as a percent rounded to 2 decimal places. a. Coupon rate b. Current yield e-1. Approximate yield to maturity c-2. Exact yield to maturity % %
Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 19 percent annual interest. The current yield to maturity on such bonds in the market is 11 percent. Calculate your final answer using the formula and financial calculator methods. Compute the price of the bonds for these maturity dates: (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.) Bond Price a) 25 years b) 19 years c) 5 years
Applied Software has a $1,000 par value bond outstanding that pays 12 percent interest with annual payments. The current yield to maturity on such bonds in the market is 7 percent. Use Appendix B and Appendix D. Compute the price of the bonds for these maturity dates: (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answer to 2 decimal places.) Price of the bond a. 30 years $ b. 15 years $ c. 1 year $
Barry's Steroids Company has $1,000 par value bonds outstanding at 16 percent interest. The bonds will mature in 40 years. If the percent yield to maturity is 14 percent, what percent of the total bond value does the repayment of principal represent? Assume interest payments are annual. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. Principal as a percentage of bond price %
Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 19 percent annual interest. The current yield to maturity on such bonds in the market is 11 percent. Compute the price of the bonds for these maturity dates: (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.) a. 25 years b. 19 years c. 5 year
Exodus Limousine Company has $1,000 par value bonds outstanding at 17 percent interest. The bonds will mature in 40 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the current price of the bonds if the percent yield to maturity is: (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual) Bond Price a) 5 percent b) 6 percent
You issued debt in the form of bonds, with a face value of $1,000, and have 9 years until maturity. The bonds have an annual coupon rate of 7.8%, which are paid semiannually. a. The current price is $1,100. What is the pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g 12.34.) b. The tax rate is 22%. What is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34.)
A Sunfish bond is paying 10 percent interest for 20 years on a semiannual basis. Assume interest rates in the market (yield to maturity) increase from 6 percent to 14 percent. (Use a Financial calculator to arrive at the answers. Do not round intermediate calculations. Enter all amounts as positive value. Round the final answers to 2 decimal places.) a. What is the bond price at 6 percent? Bond price $ b. What is the bond price at 14 percent? Bond price $ c. What would be the percentage return on an investment bought when rates were 6 percent and sold when rates are 14 percent? Return on investment % (Click to select) profit loss (Type answer only)

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