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A frugal shopper checks the prices of the same name-brand microwave oven at six different department stores and discovers the following sale prices Determine the median price of the values given
Heymann company bonds have four years left to maturity. Interest is paid annually, and the bonds have a $1000 par value and a coupon rate of 9 percent.
A firm's bonds have maturity of ten years with a $1000 face value, an 8 percent semiannual coupon, are callable in 5 years at $1050 and, currently sell at a price of 1100 dollar.
Kaufman Enterprises has bonds outstanding with a $1000 face value and ten years left until maturity. They have an 11% yearly coupon payment and their current price is $1175.
An 8% semiannual coupon bond matures in five years. The bond has a face value of $1000 and current yields of 8021%. Calculate the bond's price and YTM?
Compute the effective duration of a bond to a 100 basis point change in interest rates with a 6-1/4 coupon, 10-years remaining to maturity, & an asking quote of 110.7811 [decimal, not 32nds].
Nungesser Corporation's outstanding bonds have a $1,000 par value, an 8% semiannual coupon, 9 years to maturity, and a 10 percent YTM. Calculate the bond's price? Give your answer to the nearest hundr
Suppose the following: The real risk-free rate, r*, is expected to remain constant at 3%. Inflation is expected to be 3% next year and then to be constant at 2% a year thereafter.
Assume the interest rate on a 1-year T-bond is 5.0% and that on a 2-year T-bond is 6.0%. Suppose that the pure expectations theory is NOT valid, and the MRP is zero for a one year T-bond but 0.4% for
Determine the coupon rate should be set on the bond with warrants if the total package is to sell for $1,000?
Central City received 80,500,000 dollar from the bond issue. Use a spreadsheet program to find the NIC and TIC interest rates for the bond issue. Calculate the values for NIC and TIC be if the interes
New University plans to issue a 100,000 dollar bond. The money is to buy computer projection units for classrooms. The bond matures in ten years, & it makes semiannual interest payments.
Suppose that McDonald's and Burger King have similar 1,000 dollar par value bond issues outstanding. If the nominal required rate of return, kd is 12%, semiannual basis, for both bonds, determin
A six year bond which pays 8% interest semiannually sells at par [1,000 dollar]. Another six year bond of equal risk pays 8% interest yearly. Calculate the price of the bond which pays annual int
Fish & Chips Inc. has two bond issues outstanding, and both sell for 701.22 dollar. The first issue has a yearly coupon rate of 8% and 20 years to maturity.
A bond with a $100 yearly interest payment with 5 years to maturity [not expected to default] would sell for a premium if interest rates were below 9% and would sell for a discount if interest values
The following bond quotations are taken from the Wall Street Journal dated Friday, September 5, 2003. Why is the yield [yield to maturity] on the General Motors bond so much higher than the yield on t
Consider the Allied Signal Corporation zero coupon money multiplier notes of 2008. The bonds were issued on July 1, 1990, for $100. Interest is paid every July 1 and the bond matures July 1, 2008. Det
Two bonds are identical except for their maturity. The bonds have a coupon rate that is greater than their yield to maturity. Determine which of the following is true when comparing the two bonds?
SWH Corporation issued bonds on January 1, 2004. The bonds had a coupon rate of 4.5 percent, with interest paid semiannually. The face value of the bonds is 1,000 dollar and the bonds mature on Januar
Aaron Corporation has 2 bonds outstanding. Both bonds mature in ten years, have a face value of $1,000, & have a yield to maturity of 8 percent.
Thatcher Corporation’s bonds will mature in ten years. The bonds have a value of $1000.00 and an 8 percent coupon rate, paid semiannually. The price of the bonds is $1,100.
Health Foods’ bonds have seven years remaining to maturity. The bonds have a face value of $1000.00 & a yield to maturity of 8 percent. They pay interest yearly & have a 9% coupon rate.
The Lone Star Company has $1,000 par value bonds outstanding at 9% interest. The bonds will mature in twenty years.
Suppose that the following quote for the Financial Management Corporation’s 1,000 dollar par value bond was found in the Wednesday, November 8, issue of the Wall Street Journal.