Omega Inc. holds a 12-year bond that has a 12 percent coupon rate. It is currently selling for $1,190, which is the bond's face value. If interest is paid semiannually, what is the capital gains yield after one year? Group of answer choices -0.75% 10.08% 9.33% -2.35% 5.99%
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Omega Inc. holds a 12-year bond that has a 12 percent coupon rate. It is currently selling for $1,190, which is the bond's face value. If interest is paid semiannually, what is the
-0.75%
10.08%
9.33%
-2.35%
5.99%
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- 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?(Bond valuation) Enterprise, Inc. bonds have an annual coupon rate of 9 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 16 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.)Tom Inc. bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65, paid semiannually. The current price is $960. What is the current yield? Group of answer choices a)7.16% b)7.17% c)6.77% d)6.5%
- LotsaDough's bonds have a 20-year maturity, 8% coupon (paid annually), $1000 par (face) value, and are priced at $952.68. What is LotsaDough's cost of debt (ignoring taxes)? Group of answer choices 7.0% 7.5% 8.0% 8.5%A firm raises capital by selling $10,000 worth of debt with flotation costs equal to 2% of its par value. If the debt matures in 10 years and has an annual coupon interest rate of 11%, what is the bond's YTM? Question content area bottom Part 1 The bond's YTM is enter your response here%. (Round to two decimal places.)(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.)
- Manta Corp has a bond issue outstanding that pays a 9.25 percent coupon and matures in 15 years. The bonds have a par value of $1,000 and a market price of $1,236.16. Interest is paid semiannually. What is the yield to maturity? Question 5 options: 7.06% 6.93% 6.73% 7.30% 6.12%Tom Inc. bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65, paid semiannually. The market requires an interest rate of 6.7% on these bonds. What is the bond's price? Group of answer choices a)$1143.2 b)$780.2 c)$987.8 d)$1156.5XYZ has an outstanding bond. It's a 6% semiannual coupon bond maturing in 4 years with a par value of $100 and is trading at $90. Income tax rate is 25%. Calculate the after-tax cost of debt for XYZ. Group of answer choices 4.06% 4.64% 6.38% 6.77%
- Assume that Bunch Inc. has an issue of 18 -year $1,000 par value bonds that pay 7% interest, annually. Further assume that today's required rate of return on these bonds is 5%. How much would these bonds sell for today? Round off to the nearest $1. Select one:$1,201.32$1,233.79$1,032.56$1,134.88A. Morin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 6.7% on these bonds. What is the bond's price? a. $1,215.14 b. $1,155.86 c. $1,047.19 d. $770.58 e. $987.92 B. Which of the following statements is CORRECT? a. IPO prices are generally established by the market, and buyers of the new stock must pay the price that prevails at the close of trading on the day the stock is offered to the public. b. It is possible that the price set in an IPO is so low that investors will want to buy more shares than the company wants to sell. In that case, the company will have to issue more shares than it wants to sell. c. The term "IPO" stands for Introductory Price Offered, and it is the price at which shares of a new company are offered to the public. d. In a "Dutch auction," investors who want to buy shares in an IPO submit bids…D&G Enterprises issues bonds with a $1,000 face value that make coupon payments of $30 every 3 months. What is the coupon rate? A) 0.30% B) 3.00% C) 9.00% D) 12.00% E) 30.00%
