The Loughran Corporation has issued zero-coupon corporate bonds with a five-year maturity. Investors believe there is a 20% chance that Loughran will default on these bonds. If Loughran does default, investors expect to receive 25% of their promised payoff at maturity (e.g., $0.25 cents per dollar they are promised). If investors require a 8.0% expected return on their investment in these bonds, which of the following statements most accurately describes the price (per $100 face value) and current YTM of these bonds? OA. This bond is priced at $54.45 per $100 face value with a YTM of 12.9% OB. This bond is priced at $68.06 per $100 face value with a YTM of 8.0%. OC. This bond is priced at $57.85 per $100 face value with a YTM of 8.0%. OD. This bond is priced at $57.85 per $100 face value with a YTM of 11.6%. OE. This bond is priced at $85.00 per $100 face value with a YTM of 3.3%.

Give typing answer with explanation and conclusion

A 10-year bond of a firm in severe financial distress has a coupon rate of 10% and sells for $900. The firm is currently renegotiating the debt, and it appears that the lenders will allow the firm to reduce coupon payments on the bond to one-half the originally contracted amount. The firm can handle these lower payments. what are the stated and expected yields to maturity of bonds? The bond makes its coupon payments annually. Do not round intermediate calculations. ( Round your answers to 2 decimal places.).

Assets, Incorporated, plans to issue $6 million of bonds with a coupon rate of 7.8 percent, a par value of $1,000, semiannual coupons, and 25 years to maturity. The current market interest rate on these bonds is 7.1 percent. In one year, the interest rate on the bonds will be either 9 percent or 5 percent with equal probability. Assume investors are risk-neutral. a. If the bonds are noncallable, what is the price of the bonds today?

Ezzell Enterprises' noncallable bonds currently sell for $1,218.00. They have a 5-year maturity, semi-annual coupon rate of 12.00%, and a par value of $1000. What is the bond's capital gain or loss yield?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.

The Loughran Corporation has issued zero-coupon corporate bonds with a five-year maturity. Investors believe there is a 40% chance that Loughran will default on these bonds. If Loughran does default, investors expect to receive 25% of their promised payoff at maturity (e.g., $0.25 cents per dollar they are promised). If investors require a 7.0% expected return on their investment in these bonds, which of the following statements most accurately describes the price (per $100 face value) and current YTM of these bonds? OA. This bond is priced at $42.78 per $100 face value with a YTM of 18.5% OB. This bond is priced at $49.91 per $100 face value with a YTM of 14.9% OC. This bond is priced at $71.30 per $100 face value with a YTM of 7.0%. OD. This bond is priced at $49.91 per $100 face value with a YTM of 7.0%. OE. This bond is priced at $70.00 per $100 face value with a YTM of 7.4%.

Katie Pairy Fruits Incorporated has a $2,200 23-year bond outstanding with a nominal yield of 15 percent (coupon equals 15 % × $2,200 = $330 per year). Assume that the current market required interest rate on similar bonds is now only 12 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Compute the current price of the bond. Note: Do not round Intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual. Current price of the bond b. Find the present value of 3 percent x $2,200 (or $66) for 23 years at 12 percent. The $66 is assumed to be an annual payment. Add this value to $2,200. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual, Present value

The Chauncey Corporation currently has a bond outstanding with a coupon rate of 6 percent and annual payments. The bond is currently selling for $983.04. The bond matures in 11 years and has a par value is $1,000. What is the yield to maturity (YTM) of The Chauncey Company's bonds?  a)3.11%  b)12.29% c)6.37%  d)None of these options are correct e) 6.22%

Short Corp just issued bonds that will mature in 10 years, and Long Corp issued bonds that will mature in 20 years. Both bonds promise to pay a semiannual coupon, they are not callable or convertible, and they are equally liquid. Further assume that the Treasury yield curve is based only on the pure expectations theory. Under these conditions, which of the following statements is CORRECT? O a. If Long's and Short's bonds have the same default risk, their yields must under all conditions be equal. O b. If the Treasury yield curve is upward sloping and short has less default risk than Long, then Short's bonds must under all conditions have a lower yield than Long's bonds. O c. If the yield curve for Treasury securities is flat, Short's bond must under all conditions have the same yield as Long's bonds. O d. If the yield curve for Treasury securities is upward sloping, Long's bonds must under all conditions have a higher yield than Short's bonds. O e. If the Treasury yield curve is…