The yield to maturity for 15-year bonds is as follows for four different bond rating categories. AAA AA 8.20% 8.60 A BBB 9.00% 10.00 The bonds of Falter Corporation were rated as A and issued at par a few weeks ago. The bonds have just been downgraded to BBB. Determine the new price of the bonds, assuming a 15-year maturity and semiannual interest payments. Assume the par value of the bonds is $1,000. (Use a Financial calculator to arrive at the answers. Round the final answer to 2 decimal places.) Price of the bonds
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- On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?The yield to maturity for 25-year bonds is as follows for four different bond rating categories. AAA 9.20% A 10.00% AA 9.40 BBB 10.40 The bonds of Falter Corporation were rated as AAA and issued at par a few weeks ago. The bonds have just been downgraded to AA. Determine the new price of the bonds, assuming a 25-year maturity and semiannual interest payments. Assume the par value of the bonds is $1,000. (Use a Financial calculator to arrive at the answers. Round the final answer to 2 decimal places.) Price of the bonds please show step by step how to use calculator BA IIThe yield to maturity for 25-year bonds is as follows for four different bond rating categories. AAA 10.20% A 10.40 888 10.80% 12,00 The bonds of Falter Corporation were rated as A and issued at par a few weeks ago. The bonds have just been downgraded to BBB. Determine the new price of the bonds, assuming a 25-year maturity and semiannual interest payments. Assume the par value of the bonds is $1,000. (Use a Financial calculator to arrive at the answers. Round the final answer to 2 decimal places.) Price of the bonds
- The yield to maturity for 20-year bonds is as follows for four different bond rating categories. AAA AA 10.00% A 10.20 BBB 11.00% 11.20 The bonds of Falter Corporation were rated as AAA and issued at par a few weeks ago. The bonds have just been downgraded to AA. Determine the new price of the bonds, assuming a 20-year maturity and semiannual interest payments. Assume the par value of the bonds is $1,000. (Use a Financial calculator to arrive at the answers. Round the final answer to 2 decimal places.) Price of the bonds $IThe yield to maturity for 25-year bonds is as follows for four different bond rating categories. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Aaa Aal Aa2 Aa3 10.00% 10.60% 11.00% 11.40% The bonds of Falter Corporation were rated as Aaa and issued at par a few weeks ago. The bonds have just been downgraded to Aa2. Determine the new price of the bonds, assuming a 25-year maturity and semiannual interest payments. Note: Do not round intermediate calculations and round your answer to 2 decimal places. Price of the bonds S 1,091 28The yield to maturity for 25-year bonds is as follows for four different bond rating categories. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Aaa 10.20% 10.40% Aal Aa2 10.80% Aa3 12.00% The bonds of Falter Corporation were rated as Aaa and issued at par a few weeks ago. The bonds have just been downgraded to Aa2. Determine the new price of the bonds, assuming a 25-year maturity and semiannual interest payments. (Do not round intermediate calculations and round your answer to 2 decimal places.) Price of the bonds
- The 7-year $1000 par bonds of Vail Inc. pay 11 percent interest. The market's required yield-to-maturity on a comparable-risk bond is 12 percent. The current market price for the bond is $910. a. Determine the yield to maturity. b. What is the value of the bonds to you given the yield to maturity on a comparable-risk bond? c. Should you purchase the bond at the current market price? __________________________________________________________________________ a. What is your yield to maturity on the Vail bonds given the current market price of the bonds? ____ % (Round to two decimal places.)A bond of Telink Corporation pays $120 in annual interest, with a $1,000 par value. The bonds mature in 15 years. The market's required yield to maturity on a comparable-risk bond is 8 percent. a. Calculate the value of the bond. b. How does the value change if the market's required yield to maturity on a comparable-risk bond (i) increases to 14 percent or (ii) decreases to 4 percent? c. Interpret your findings in parts a and bThe 12-year $1 comma 000 par bonds of Vail Inc. pay 13 percent interest. The market's required yield to maturity on a comparable - risk bond is 16 percent. The current market price for the bond is $910. a. Determine the yield to maturity. b. What is the value of the bonds to you given the yield to maturity on a comparable - risk bond? c. Should you purchase the bond at the current market price?
- A bond of Visador Corporation pays $70 in annual interest, with a $1,000 par value. The bonds mature in 16 years. The market's required yield to maturity on a comparable-risk bond is 8.5 percent. a. Calculate the value of the bond. b. How does the value change if the market's required yield to maturity on a comparable-risk bond (i) increases to 12 percent or (ii) decreases to 5 percent? c. Interpret your finding in parts a and b.The four different bond ratings below have a yeild to maturity for 10 year bonds. Baa 9.40% Ba1 9.60% Ba2 10.00% Ba3 10.60% The bonds of Parrot Corp. were rated as Baa (9.40%) and issued at par a few weeks ago. The bonds have just been downgraded to Ba2 (10.00%) . Determine the new price of the bonds, assuming a 10-year maturity and semi-annual interest payments.The 7-year $1,000 par bonds of Vail Inc. pay 8 percent interest. The market’s required yield to maturity on a comparable-risk bond is 5 percent. The current market price for the bond is $1,080. A. Determine the yield to maturity. B. What is the value of the bonds to you given the yield to maturity on a comparable-risk bond? C. Should you purchase the bond at the current market price ? A. What is your yield to maturity on the Vail bonds given the current market price of the bonds? Round to two decimal places