Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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MJ bonds currently sell for $1,280 and have a par value of $1000. they pay $135 annual coupon and have a 15 year maturity, they can be called in 5 years at $1,050. what is the YTC?
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- 3) 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_forwardYour company currently has $1,000 par, 6.5% coupon bonds with 10 years to maturity and a price of $1,084. 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 six months. (Round to two decimal places.)arrow_forward(Bond valuation) Enterprise, Inc. bonds have an annual coupon rate of 14 percent. The interest is paid semiannually and the bonds mature in 13 years. Their par value is $1,000. If the market's required yield to maturity on a comparable-risk bond is 8 percent, what is the value of the bond? What is its value if the interest is paid annually? Question content area bottom Part 1 a. The value of the Enterprise bonds if the interest is paid semiannually is $enter your response here. (Round to the nearest cent.) Part 2 b. The value of the Enterprise bonds if the interest is paid annually is $enter your response here. (Round to the nearest cent.)arrow_forward
- Dyl Inc.'s bonds currently sell for $810 and have a par value of $1,000. They pay a $65 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100. What is their yield to maturity (YTM)? Answer choices 8.83% 10.78% 7.33% 7.60% 9.28%arrow_forwardBelow you will find the Demand and Supply Curves for $250,000 bonds that mature in 18 years: Qd = 400,000 – 2(P) Qs = 3(P) – 100,000 What is the current market price of these bonds?arrow_forwardYour company wants to raise $8.5 million by issuing 10-year zero-coupon bonds. If the yield to maturity on the bonds will be 5% (annual compounded KAPR), what total face value amount of bonds must you issue? ve this 6 F V The total face value amount of bonds that you must issue is $. (Round to the nearest cent.) View an example Get more help. G B.B % 5 T G 1 B A 6 Y H ☐ MacBook Pro N & 7 U J * 8 M Ⓒ K ( 9 H 15 X 1 option Clear all + = Check answer delete returarrow_forward
- Your company wants to raise $8.0 million by issuing 30-year zero-coupon bonds. If the yield to maturity on the bonds will be 5% (annual compounded APR), what total face value amount of bonds must you issue?arrow_forwardCompany Z's bonds currently sell for $1233 and have a par value of $1,000. They pay a $110 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,350. What is their yield to call (YTC)?arrow_forwardall subpartsarrow_forward
- Dyl Inc.'s bonds currently sell for $880 and have a par value of $1,000. They pay a $70 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,140. What is their yield to maturity (YTM)? a. 8.50% b. 5.80% c. 7.95% d. 8.44% e. 9.14%arrow_forwardYour company wants to raise $9.0 million by issuing 25-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.)arrow_forwardPerry Inc. bonds sell at $1,150, they have a mature in 6 years, an annual coupon of $85 and par value of $1000. What is current yield?arrow_forward
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