Your company wants to raise $10 million by issuing 20-year zero-coupon bonds. If the yield to maturity on the bonds will be 6% (annually compounded APR), what total principal amount of bonds must you issue?
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- Your company wants to raise $10 million by issuing 20-year zero-coupon bonds. If the yield to maturity on the bonds will be 6% (annually compounded APR), what total principal amount of bonds must you issue?
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- Your company wants to raise $8.0 million by issuing 30-year zero-coupon bonds. If the yield to maturity on the bonds will be 5% (annual compounded APR), what total face value amount of bonds must you issue?A company has decided to issue bonds with annual coupon payments. The bonds will have a par value of $1,000, 20 years to maturity, and a coupon rate of 9.6 percent paid annually. If the bond's yield to maturity is 8.3 percent, what is the price of the bond?Your company currently has $ 1,000 par, 5.75 % coupon bonds with 10 years to maturity and a price of $ 1,070. If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to set? Assume that for both bonds, the next coupon payment is due in exactly six months. You need to set a coupon rate of %
- Harbor Inc. wants to raise $80 million by issuing 10-year zero-coupon bonds at an annual interest rate of 5.4%. What should be the total face value of the bonds (in $ million)?A company's bonds have a face value of $1,000. The bonds carry a 6% coupon, pay interest semiannually, and mature in 15 years. What is the current value of these bonds if the yield to maturity is 9.23%? Your Answer:Your company currently has $1000 par, 6% coupon bonds with ten years to maturity and a price of $1078. If you want to issue new ten-year coupon bonds at par, what coupon rate do you need to set? Assume that for both bonds, the next coupon payment is due in exactly 6 months
- A company is offering bonds that pay $100 per year indefinitely. If you require a 12% return on these bonds—that is, the discount rate is 12%—what is the value of each bond?To expand its business, Laris Company would like to issue a bond with par value of $1,000, coupon rate of 15%, and maturity of 20 years from now. What is the value of the bond if the required rate of return is 12%? (Interest is paid annually)Consider buying a $1,000-denomination corporate bond at the market price of $996.25. The interest will be paid semiannually at an interest rate per payment period of 4.8125%. Twenty interest payments over 10 years are required. We show the resulting cash flow to the investor as shown. Find the return on this bond investment (or yield to maturity).
- A company is planning to issue perpetual, callable bonds with a coupon rate of 8% paid annually, and a par value of $1,000. The nominal interest rate on these bonds will be 9% for the next year. In one year, the nominal rate on the bonds will be either 10% with probability 0.6, or 8% with probability 0.4. The bonds are callable at $1200. Assuming the bonds are called if the interest rate decreases, what is the price of the callable bond today?Jordie Systems Co. plans to issue bonds with a par value of $1,000 and 20 years to maturity. These bonds will pay a coupon rate of 2.5% and interest paid semiannually. Current market conditions are such that the bonds will be sold to net $1,042.00. What is the yield to maturity (YTM) on an annual basis that a broker would quote to an investor?Concordant Inc. wants to raise $20 million by issuing 10-year zero-coupon bonds with a yield to maturity (EAR) of 6%. What should be the total face value of the bonds (in $ million)?