One year ago, Henderson Honey issued a 10-year bond for $1,000. The bond's coupon rate of interest is 6 percent, and interest is paid annually. The current value of the bond is $941. What are the current yield and capital gains yield Henderson's bondholders earned during the year? Do not round intermediate calculations. Round your answers to one decimal place. Use a minus sign to enter a negative value, if any. Current yield:  _____ % Capital gains yield: _____  % What is the bond's yield to maturity today? Do not round intermediate calculations. Round your answer to one decimal place.  _____ %

Q: Wildhorse, Inc., has four-year bonds outstanding that pay a coupon rate of 6.4 percent and make…

A: Compound = n = Semiannually = 2Time = nper = 4 * 2 = 8Coupon Rate = 6.4 / 2 = 3.2%Current Price of…

Q: ou purchased a zero-coupon bond one year ago for $76.00. The market interest rate is now 9.0…

A: Zero coupon bonds are those bonds that do not pay any coupons.These bonds are issued at steep…

Q: An investor purchased the following five bonds. Each bond had a par value of $1,000 and a 9% yield…

A: Par value: $1,000Yield to maturity: 9%New yield to maturity: 5%Price of bonds: ?Percentage change in…

Q: An investor purchased the following five bonds. Each bond had a par value of $1,000 and a 11% yield…

A: A bond indicates the debt instrument that entitles its holder the right to receive a particular…

Q: A $1,000 face value bond matures in 11 years, pays interest annually, and has a 6.25 percent coupon.…

A: Yield to maturity (YTM) is the total return anticipated on a bond if it is held until it matures. It…

Q: A newly issued 10-year, $1,000, zero coupon bond just sold for $311.05. What is the implicit…

A: Data given: FV=$1000 n=10 year PV= $311.05 Interest is semiannual compounding.

Q: Bettis Corporation issued 7 percent bonds 3 years ago with 22 years until maturity.  The coupons are…

A: Yield to call refers to the total return earned by the bondholders if the bond is held until the…

Q: Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of $1,000.…

A: Present value 1270 coupon amount (PMT) = 15%*1000/2 75 Face value (FV) 1075 NPER (6*2) 12

Q: Katie Pairy Fruits Inc. has a $1,300 14-year bond outstanding with a nominal yield of 18 percent…

A: a)  Data given: Face value=$1300 Coupon rate=18% p.a. (compounded annually) n=14 years Yield…

Q: Ashburn Company issued 15-year bonds two years ago at a coupon rate of 9.4 percent. The bonds make…

A: Compound = Semiannually = 2Time = nper = (15 - 2) * 2 = 26Coupon Rate = 9.4 / 2 = 4.7%Quoted Price =…

Q: You purchased a zero-coupon bond one year ago for $278.33. The market interest rate is now 8…

A: Data given:: Interest rate = 8% (compounding semiannually) Assumed Par value of bond = $1000…

Q: The Pioneer Petroleum Corporation has a bond outstanding with an $100 annual interest payment, a…

A: Step 1:a)We have to calculate the yield-to-maturity using the approximation method. The formula of…

Q: Popie Drink Corp issued 12 year bonds 2 years ago at a coupon rate of 8.4 percent. The bonds make…

A: Compound = semiannually = 2 Time = nper = (12 - 2) * 2 = 20 semiannually Coupon rate = 8.4/ 2 = 4.2%…

Q: You bought a six-year bond issued by Oriole Corp. four years ago. At that time, you paid $972.33 for…

A: Bonds can be termed as debt instruments that are issued for raising public funds by issuing at a…

Q: Last year Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of $1,000.…

A: 1.Calculation of YTM and YTC:Formula used:Since the YTM is above the YTC, the bond is likely to be…

Q: You buy a 20-year bond with a coupon rate of 9.2% that has a yield to maturity of 10.2%. (Assume a…

A: Yield to maturity (YTM) is a financial concept used to measure the total return an investor can…

Q: Carla Vista, Inc., has bonds outstanding that will mature in eight years. The bonds have a face…

A: Excl formula:Solution:

Q: One year ago, Henderson Honey issued a 15-year bond for $1,000. The bond's coupon rate of interest…

A: Current yield formula= (coupon interest rate*maturity value)/previous year bond price.   Capital…

Q: The bonds make semiannual payments. ? (Do not round Intermediate calculations. Round the final…

A: Answer : Future value (FV)= $1000 Coupon rate = 8.8%/2= 4.4% Coupon payment (PMT)  = $1,000*4.4% =…

Q: DeChambeau Inc. has a $10,000 par value bond outstanding with a coupon rate of 4.7 percent paid…

A: Given:Face value = $10,000Coupon rate = 4.7%YTM = 4.4%Years to maturity = 9 yearsThe price of a bond…

Q: Oriole, Inc., has bonds outstanding that will mature in eight years. The bonds have a face value of…

A: Yield to Maturity (YTM) is a financial concept that reflects the total return an investor can…

Q: Rolling Company bonds have a coupon rate of 6.00 percent, 24 years to maturity, and a current price…

A: Solution:- Yield to maturity (YTM) of a bond means the rate of return the bond is yielding. We know,…

Q: Carrie's Clothes, Inc. has a five-year bond outstanding that pays $60 annually. The face value of…

A: Governments and businesses issue bonds as a means of raising capital. By purchasing a bond, you are…

Q: Realized rate of return

A: Realised rate of return is the return % generated from the bond. This can be computed with the excel…

Q: Bonds issued by the Coleman Manufacturing Company have a par value of $1,000, which of course is…

A: YTM is also known as Yield to maturity. It is a capital budgeting technique which helps in decision…

Q: Jackson Corporation's bonds have 8 years remaining to maturity. Interest is paid annually, the bonds…

A: A bond refers to an instrument that the companies use to raise debt capital from investors. Bonds…

Q: Jiminy's Cricket Farm Issued a bond with 30 years to maturity and a semlannual coupon rate of 7…

A: Bond maturity = 30 years  Coupon rate (Semi annual) = 7%/2 = 3.5% Coupon amount = $1000*3.5% = $35…

Q: You buy a 20-year bond with a coupon rate of 9.2 % that has a yield to maturity of 10.2 %. (Assume a…

A: Present value is the current value of the bond calculated by discounting the future cash flows and…

Q: Last year Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of $1,000.…

A: Current YEILD on bond can be calculated by annual coupon divided by current market price.

Q: Wall Pizzeria issued 5-year bonds one year ago at a coupon rate of 5 percent. If the YTM on these…

A: Price of bond is the sum of the present value of expected cash flows from the bond at a given…

Q: You purchase 2500 bonds with a par value of $1,000 for $983 each. The bonds have a coupon rate of…

A: Bonds are the securities which are issued by the entity in the market for the purpose of raising…

Q: Carrie's Clothes, Inc. has a six-year bond outstanding that pays $80 annually. The face value of…

A: Company issues bonds for the purpose of raising some funds and these are all considered to pay fixed…

Q: Heath Food Corporation’s bonds have 16 years remaining to maturity. The bonds have a face value of…

A: Face value (FV) = $1000 Coupon rate = 8% Annual coupon amount (C) = 1000*0.08 = $80 Years to…

Q: Madison Inc. just issued bonds with a par value of $1,000, an annual coupon rate of 3.5%, coupons…

A: Compound = Semiannually = 2Face value = fv = $1000Coupon rate = 3.5 / 2 = 1.75%Time = t = 10 * 2 =…

Q: A bond is issued with a coupon of 5% paid annually, a maturity of 37 years, and a yield to maturity…

A: Bonds refer to instruments that allow the issuing company access to debt capital from…

Q: Dynamic Systems has an outstanding bond that has a $1,000 par value and an 11 percent coupon rate.…

A: Current yield is basically the total amount of annual coupon of the bond divided by the current…

Q: What must the coupon rate be on the bonds? (Do not round intermediate calculations and enter your…

A: A bond's price is determined by the bond's future cash flows, which include periodic interest…

Q: X Katle Pairy Fruits Incorporated has a $2,400 16-year bond outstanding with a nominal yield of 17…

A: Current price of bond is present value of all future cash flows (i.e. coupon payments and principle…

Q: Harrimon Industries bonds have 5 years left to maturity. Interest is paid annually, and the bonds…

A: A bond provides access to debt capital from non-traditional sources such as investors for the…

Q: Dufner Co. issued 17-year bonds one year ago at a coupon rate of 6.8 percent. The bonds make…

A: Bond valuation is the process of determining the present value of future cash flows that an investor…