The Allstate Corporation (ALL) issued a 14.25-year, 7.65% weekly-coupon bond selling for $1,135.90 can be called in 7.65 years for $1,175.73. If Jackson bought ALL's callable bond, he would expect a capital. which is about Assume that a year has 52 weeks, and its face value is $1,000. O A. gain/ 0.12% OB. loss/0.52% OC. loss/0.75% OD. loss/0.92%

A. 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…

Kimberly purchased a $6,500 bond that was paying a 6.75% compounded semi- annually coupon rate and had 3 more years to maturity. The yield rate at the time of purchase was 5.75% compounded semi-annually. a. How much did Kimberly pay for the bond? Round to the nearest cent b. What was the amount of premium or discount on the bond?

3. Assume you purchased a bond for $9,186. The bond pays $300 interest every six months. You sell the bond after 18 months for $10,000. Calculate the following: a. Income. b. Capital gain (or loss). c. Total return in dollars and as a percentage of the original investment. Review Only Click the icon to see the Worked Solution. a. The current income is $ (Round to the nearest dollar.) b. The capital gain (or loss) is $ (Enter a loss as a negative number and round to the nearest dollar.) c. The total return in dollars is $ (Round to the nearest dollar.) The total return as a percentage of the original investment is %. (Enter as a percentage and round to two decimal places.)

Gadget Co invests in a $100,000 bond with an 8% coupon rate. The market rate of interest is 10% annually and it is a 5 year bond 1. Assuming the company invests on January 1st and only pays $92,418 for this bond, what is the journal entry on January 1st? 2. Prepare a full amortization table for this bond: Purchase Year 1 Year 2 Year 3 Year 4 Year 5 Cash Received Interest Revenue Amortized Value Carrying Value stess Questions 3 and 4 on the next tab +

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$1,134.88

A firm's $1,000 par value bonds mature in 7 years. The have an annual coupon payment of $70 and the market interest rate is 8.5%. What is the bond's price? Select one: a. $923.22 b. $946.30 c. $969.96 d. $994.21 e. $1,019.06

A company issued 10%, 10-year bonds with a face amount of $100 million. The market yield for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price did the bonds sell? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. Use tables, Excel, or a financial calculator.(FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Price of bonds

On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.325%. The purchase price was 89.875, and the commission was $9 per bond. Bonds from this particular company pay interest on February 1 and August 1.   (a) What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) = ____ %   (b) What is the total purchase price (in $) of the bonds? (Round your answer to the nearest cent.) =____$    (c)If Wayne sold the bonds on November 1 for 94.875, what are the proceeds (in $) from the sale? (Round your answer to the nearest cent.)

Krystian Inc. issued 12-year bonds with a face value of $110,000 and a stated rate of 5% when the market rate was 7%. Interest was paid semi-annually. A. Calculate the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. NOTE: The requirement is referring to total interest and principal. X B. Would an investor be willing to pay more or less than face value for this bond? Less than