Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $850. What is the bond's nominal (annual) coupon interest rate? 6.27% 6.60% 6.95% 7.32% 7.70%arrow_forwardXYZ, Inc's bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 8%. The bonds have a yield to maturity of 9%. What is the current market price of these bonds? Question 12 options: a) $828.93 b) $928.39 c) $892.93 d) $882.39arrow_forwardYtmarrow_forward
- A corporate bond matures in five years. This bond’s credit spread over comparable maturity Treasury Bonds is 3.25%. Treasury bond yields are currently 2.125%, 4.375%, and 6.250% for 2-year, 5-year, 10-year maturity bonds, respectively. What is the cost of debt for the firm which issued the bond?arrow_forwardA corporate bond has a face value of $1,000, and pays a $14 coupon semiannually (that is, the bond has a 2.8 percent coupon). The bond matures in 6 years and sells at a price of $545. What is the bond's nominal yield to maturity? O 13.87% O 15.37% O 14.37% O 15.87% O 14.87%arrow_forwardMorin 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 6.1% on these bonds. What is the bond's price? O a. $1,024.74 O b. $1,116.97 O c. $1,147.71 O d. $1,096.47 O e. $1,280.93arrow_forward
- Mellon 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_forwardRadoski Corporation's bonds make an annual coupon interest payment of 7.35% every year. The bonds have a par value of $1,000, a current price of $920, and mature in 12 years. What is the yield to maturity on these bonds? a. 6.15% b. 9.15% c. 8.50% d. 7.99% e. 8.44%arrow_forward
- Nikita Enterprises has bonds on the market making annual payments, with 14 years to maturity, a par value of $1,000, and selling for $953. At this price, the bonds yield 9.4 percent. What must the coupon rate be on the bonds?arrow_forwardYtmarrow_forwardFish Company bonds have a face value of $1,000 and are currently quoted at 98.4% of par. The bonds pay $60 annually. What is the current yield on these bonds? Question 4 options: 6.52% 6.10% 6.71% 7.20% 6.95%arrow_forward
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