You have been hired to value a new 30-year callable, convertible bond. The bond has a 7 percent coupon, payable annually, and its face value is $1,000. The conversion price is $60, and the stock currently sells for $50. Comparable non-convertible bonds are priced to yield 9 percent. What is the conversion premium for this bond?

Your client is considering the purchase of a bond that is currently selling for $1058.15. The client wants to know what annual rate of return can they expect to earn on the bond. The bond has 27 years to maturity, pays a coupon rate of 7.8% (payments made semi-annually), and a face value of $1000, (Round to 100th of a percent and enter your answer as a percentage, e.g. 12.34 for 12.34%) Answer: Check

You purchase a bond with an invoice price of $1,041. The bond has a coupon rate of 5.63 percent, it makes semiannual payments, and there are 5 months to the next coupon payment. The par value is $1,000. What is the clean price of the bond?

Consider a(n) Ten-year, 14.5 percent annual coupon bond with a face value of $1,000. The bond is trading at a rate of 11.5 percent. a. What is the price of the bond?b. If the rate of interest increases 1 percent, what will be the bond’s new price?c. Using your answers to parts (a) and (b), what is the percentage change in the bond’s price as a result of the 1 percent increase in interest rates? (Negative value should be indicated by a minus sign.)d. Repeat parts (b) and (c) assuming a 1 percent decrease in interest rates.  (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))  a. Price of the bond     b. Bond's new price     c. Percentage change   % d. Bond's new price       Percentage change   %

You purchase a bond with a par value of $1,000 and an invoice price of $1,044. The bond has a coupon rate of 5.1 percent, and there are 4 months to the next semiannual coupon date. What is the clean price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Clean price _

You are considering the purchase of a Zero Coupon Bond. This bond has a coupon rate of 0%, a face value of $1000 and a 17-year maturity. The seller is offering the bonds at a price of $830. What is the YTM the seller is offering on the bonds? Assume annual compounding.

You have just been offered a $1,000 par value bond for $847.88. The coupon rate is 8 percent, payable annually, and yields to maturity on new issues of similar risk are 10 percent. You want to know how many more interest payments you will receive, but the party selling the bond cannot remember. Can you determine how many interest payments remain?

You are considering the purchase of a $1,000 par value bond with a coupon rate of 5.7% (with interest paid semiannually) that matures in 12 years. If the bond is priced to yield 8%, what is the bond's current price? The bond's current price is $ (Round to the nearest cent.) 0 www.

A convertible bond has a coupon of 9 percent, paid semiannually, and will mature in 12 years. If the bond were not convertible, it would be priced to yield 8 percent. The conversion ratio on the bond is 25 and the stock is currently selling for $43 per share. What is the minimum value of this bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)     Minimum value

Your broker offers to sell you a CleenWtr Bond for $1150. The bond has a coupon rate of 3%, semiannual interest payments,  and a maturity of 9 years. If the interest rate on comparable debt is 2.0% is your broker fairly pricing the bond? (What is the curent price of the bond)