Union Local School District has bonds outstanding with a coupon rate of 3.8 percent paid semiannually and 29 years to maturity. The yield to maturity on these bonds is 2.9 percent and the bonds have a par value of $10,000. What is the dollar price of the bonds? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Price
Q: Calculate the amount of simple interest earned.
A: Given that,
Q: Pv = $23000 t = 5 years i = 10% 1 - Calculate the PMT 2 - Form a Laon amortization table.
A: Present value of payment = pv = $23,000Time = t = 5 yearsInterest Rate = i = 10%
Q: Consider the following information: State of Economy Probability of State of Economy Rate of Return…
A: Given Data: State of economyProbability ReturnReturnReturnBoom…
Q: K Calculate the after-withdrawal future value of $12,000.00 invested for 5 years in each share class…
A: When evaluating the after-withdrawal future value of an investment in each share class over a 5-year…
Q: Bhupatbhai
A: The objective of this question is to find the cost of capital at which the Net Present Value (NPV)…
Q: BHP Billiton, an Australian company, just paid $0.85 as a dividend, which is expected to grow at 6.0…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Suppose Wacken, Limited just issued a dividend of $2.61 per share on its common stock. The company…
A: The cost of equity is the expense associated with the stake of equity shareholders in the company.…
Q: 1. XYZ Corporation is currently paying a dividend of $1.5 per share and is expected to increase this…
A: To find the current value of a share for XYZ Corporation, we need to use the dividend discount…
Q: Your firm is contemplating the purchase of a new $535,000 computer-based order entry system. The…
A: Purchase cost = $535,000Useful life = 7 yearsEarnings before tax = $189,000Salvage value =…
Q: You have been given the following return information for a mutual fund, the market index, and the…
A: The Treynor ratio is identified using two variables namely the excess returns and the beta value.…
Q: wour yield to maturity? Your yield to maturity on the Abner bonds is %. (Round to two decimal…
A: Face value - $1,000Coupon rate = 7%Years to maturity = 18 yearsCurrent price of bond = $875.
Q: Here are the returns on two stocks. Digital Cheese Executive Fruit January +15 +8 February -2 +1…
A: Standard deviation is the measure of risk or the deviation in returns for a given period. In other…
Q: What is the net present value of the flier project, which is a 3-year project where Dispersion would…
A: The net present value is a helpful metric for calculating the investment value. It compares the…
Q: A project has the following estimated data: Price = $58 per unit; variable costs $36 per unit; fixed…
A: At break even point there is no profit and no loss and all costs are covered and sales is equal to…
Q: Australian company, just paid $0.85 as a dividend, which is expected to grow at 5.0 per cent. Its…
A: WACC is the cost of capital of the company and is the weighted cost of equity and weighted cost of…
Q: Bond J has a coupon of 6.4 percent. Bond K has a coupon of 10.4 percent. Both bonds have 20 years to…
A: Step 1:a.Price of Bond J:Coupon Rate = 6.4%YTM = 7.8%N = 20 yearsFV = 1,000Using FInancial…
Q: Carilla has just received a special one-time-only order for 4,000 pieces at $150 per piece.…
A: 1. To determine whether Carilla should accept the special order for 4,000 pieces at $150 per piece,…
Q: Here are the returns on two stocks. Digital Executive Cheese Fruit January +16 +9 February -4 +1…
A: Return in finance is defined as periodic income earned on an investment in a real or financial…
Q: ou must evaluate a proposal to buy a new milling machine. The purchase price of the milling machine,…
A: NPV Net Present Value is a capital budgeting technique which helps to evaluate the profitability and…
Q: None
A: Answer image:
Q: Consider a project of the Cornell Haul Moving Company, the timing and size of the incremental…
A: Net Present Value (NPV) is a financial measure employed to evaluate the profitability of an…
Q: Compute the price of a $1,000 par value, 20 percent (semi-annual payment) coupon bond with 15 years…
A: The objective of this question is to calculate the price of a bond given its par value, coupon rate,…
Q: Jayden and Ziad own four identical pizza shops in downtown Newark. Each shop equity ratio of 35…
A: Given Data: Debt equity35%Interest Payment 52,000Cost of levered…
Q: Walen Co. has intends to purchase a new forklift for $90,000.00 cash. It expects annual net…
A: Net Present value (NPV) is a financial tool that measures the attractiveness of the project or…
Q: Your division is considering two projects with the following cash flows (in millions): 0 1 2 3…
A: Step 1:NPV is the present value of cash inflows minus initial investment. IRR is the rate at which…
Q: Estimate the value of a share of Target common stock using the discounted cash flow (DCF) model as…
A: The stock price is the value of a single share of a business. It fluctuates according to investors'…
Q: -unit material and labor cost together make up the variable cost per unit. Assuming that Cox…
A: Break-Even Point-The Break-Even Point expressed in units is calculated by dividing total fixed costs…
Q: Required information Section Break (8-11) [The following information applies to the questions…
A: An optimal risky portfolio refers to the ideal combination of risky assets that maximizes expected…
Q: Kappa Holdings is looking at a new system with an installed cost of $705,000. This cost will be…
A: To calculate NPV, first the depreciation per year, after tax salvage value and operating cash flow…
Q: Preferred stock is a hybrid security, because it has some characteristics typical of debt and others…
A: Preferred stocks are the shares of a company's stock. The holders of preferred stocks are called the…
Q: Your credit card company charges you 1.5% per month. What is the annual percentage rate on your…
A: Annual percentage rate refers to the annual real rate of return on the investment. It is the yearly…
Q: Conceptualquestions on portfolio and stand-alone risk Manuel holds a $5,000 portfolio that consists…
A: Risk: Systematic and Unsystematic riskSystematic risk is a type of risk that is unavoidable and…
Q: Question content area top Part 1 WACClong dashBook weights and market weights Webster Company has…
A: WACC is the weighted average cost of capital that can be computed for evaluating projects that are…
Q: Harper Electronics is considering investing in manufacturing equipment expected to cost $400,000.…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: None
A: NPV is a method used to evaluate the profitability of an investment or to compare the different…
Q: Suppose Beta Industries and Delta Technology have identical assets that generate identical cash…
A: Variables in the question:Beta Industries:No. of shares outstanding=7 millionPrice per…
Q: You own a portfolio that is invested 15 percent in Stock X, 35 percent in Stock Y, and 50 percent in…
A: Solution:-Expected return on portfolio means the weighted average of rerun of assets in the…
Q: When the direct rate in the United States for the euro is USD 0.9568 per EUR, the reciprocal rate…
A: The objective of the question is to find the reciprocal rate of the given direct rate of USD 0.9568…
Q: A borrower is making a choice between a mortgage with monthly payments or biweekly payments. The…
A: Loan Amount $ 2,38,000.00Interest rate 6%Tenure, Years20Compounding Period26
Q: None
A: Step 1:Discount rate (r) = 0.03Discount days (D) = 15Credit term (C) = 30 Annual effective rate = ?…
Q: Here are the returns on two stocks. Digital Executive Cheese Fruit January +14 +8 February -4 +2…
A: In finance, standard deviation refers to a statistical metric used to measure the extent of…
Q: The bond in the table pays coupons semi-annually. years to maturity 27 yield to maturity 7.2% What…
A: P = C [(1 - (1 + r/2)^(-2n)) / (r/2)]Where:P = Bond price ($1000)C = Semi-annual coupon paymentr =…
Q: (a) What would Rich's monthly payment be if he takes the 5- year 0% financing? Monthly payment for…
A: The monthly payment is the sum of money you pay each month for goods you own or borrow. It is…
Q: You have looked at the current financial statements for J&R Homes, Company. The company has an EBIT…
A: A stock, often referred to as equity or shares, signifies ownership in a corporation. Acquiring…
Q: IN EXCEKL FORMAT
A: To solve the assignment problem and determine the optimal assignment with the minimum total cost,…
Q: A company is considering investing in new machinery. The machinery will cost $1,500,000 and will be…
A: Internal rate of return:The internal rate of return (IRR) in this scenario represents the discount…
Q: Suppose you manage a $2 million fund that consists of four stocks with the following investments:…
A: Portfolio beta-Portfolio beta is the weighted sum of it's individual asset betas.Where,W=Weightage…
Q: As an "ownership" investment, stocks represent a legal obligation for the issuing company to pay…
A: Question 1Stocks represent ownership in a company and are categorized as "ownership" investments…
Q: Cullumber Bottling Corporation is considering the purchase of a new bottling machine. The machine…
A: Net present value is the difference between present value of all cash inflows and initial…
Q: Required: What is the internal rate of return (IRR) of the project? Should the firm take this…
A: The internal rate of return implies the quality of an investment. It displays the rate at which an…
Step by step
Solved in 2 steps with 1 images
- On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The bonds paid interest semi-annually. Assuming the bonds sold at 58.55, what was the selling price of the bonds? Explain why the cash received from selling this bond is different from the $200,000 face value of the bond.Union Local School District has bonds outstanding with a coupon rate of 2.9 percent paid semiannually and 24 years to maturity. The yield to maturity on these bonds is 3.4 percent and the bonds have a par value of $10,000. What is the dollar price of the bonds? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. PriceUnion Local School District has bonds outstanding with a coupon rate of 3.7 percent paid semiannually and 26 years to maturity. The yield to maturity on these bonds is 4.3 percent and the bonds have a par value of $10,000. What is the dollar price of the bonds? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
- Saved iz G Union Local School District has bonds outstanding with a coupon rate of 3.2 percent paid semiannually and 21 years to maturity. The yield to maturity on these bonds is 3.5 percent and the bonds have a par value of $5,000. What is the price of the bonds? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) HR 4.778.24Union Local School District has bonds outstanding with a coupon rate of 3.2 percent paid semiannually and 21 years to maturity. The yield to maturity on these bonds is 3.5 percent and the bonds have a par value of $5,000. What is the price of the bonds? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) PriceUnion Local School District has a bond outstanding with a coupon rate of 3.3 percent paid semiannually and 20 years to maturity. The yield to maturity on this bond is 3.7 percent, and the bond has a par value of $10,000. What is the dollar price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Bond price 9,637.52 x $
- On January 1, 2024, Agricultural Credit Union (ACU) issued 6%, 20-year bonds payable with face value of $700,000. The bonds pay interest on June 30 and December 31. Read the requirements. Requirement 1. If the market interest rate is 5% when ACU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. ▼. They are in this market, so investors will pay The 6% bonds issued when the market interest rate is 5% will be priced at acquire them. Requirements C 1. If the market interest rate is 5% when ACU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. 2. If the market interest rate is 7% when ACU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. 3. The issue price of the bonds is 99. Journalize the following bond transactions: a. Issuance of the bonds on January 1, 2024. b. c. d. Payment of interest and amortization on June 30, 2024. Payment of interest…Your answer is partially correct. Swifty Ltd. issued a $1,184,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Swifty followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond.Union local school district has bonds outstanding with a coupon rate of 3.2 percent paid semiannually and 23 years to maturity. The yield to maturity on these bonds is 2.6 percent and the bonds have par value of 5000. What is the price of the bonds?
- Maryland Department of Transportation has issued 25-year bonds that make semiannual coupon payments at a rate of 10.81 percent. The current market rate for similar securities is 11.86 percent. a. What is the current market value of one of these bonds? (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answer to 2 decimal places, e.g. 15.25.) Current market value $ b. What will be the bond’s price if rates in the market (i) decrease to 9.86 percent or (ii) increase to 13.86 percent? (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answer to 2 decimal places, e.g. 15.25.) (i) Decrease to 9.86 percent $ (ii) Increase to 13.86 percent $ c. How do the interest rate changes affect premium bonds and discount bonds?Bonds, in general, (decrease or increase) in price when interest rates go up. When interest rates decrease, bond prices (Decrease or increase). d. Suppose the bond were to mature in 12 years. What…On January 1, 2024, Neighborhood Credit Union (NCU) issued 6%, 20-year bonds payable with face value of $700,000. The bonds pay interest on June 30 and December 31. Read the requirements Requirement 1. If the market interest rate is 5% when NCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. in this market, so investors will pay The 6% bonds issued when the market interest rate is 5% will be priced at They are ▼. They are to acquire them. Requirement 2. If the market interest rate is 8% when NCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. in this market, so investors will pay The 6% bonds issued when the market interest rate is 8% will be priced at Requirement 3. The issue price of the bonds is 99. Joumalize the bond transactions. (Assume bonds payable are amortized using the straight-line amortization method. Record debits first, them credits. Select explanations on the last line…Use the following to answer questions 8-10 (Round answers to the nearest dollar) The company issues 9%, 10-year bonds with a total face amount of $100,000. The market interest rate for bonds of similar risk and maturity is 9%. Interest is paid semiannually. What is the issue price of the bond? When the company records the 2nd interest payment, how much will the company record for 8. $ 9. $ interest expense? 10. $ . What is the bond liability (carrying amount) after the 2nd interest payment?