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Suppose that you are considering the purchase of a fifteen year bond with an annual coupon rate of 9.5%. The bond has face value of 1,000 dollar and makes semiannual interest payments.
Ezzell Enterprises’ non callable bonds currently sell for 1,165 dollar. They have a 15 year maturity, a yearly coupon of $95, and a par value of 1,000 dollar.
The Morrissey Company’s bonds mature in seven years, have a par value of $1,000, & make an annual coupon payment of 70 dollar. The market interest rate for the bonds is 8.5 percent.
Ciza Inc. raised 100 million dollar by floating corporate bonds. Each bond paid a coupon of 7% with a Par Value of 1000.00 dollar and will mature in four years.
You are considering Dell Company and MCI Company bonds. Dell Company bonds mature in ten years and have a coupon rate of 10 percent with interest paid semiannually.
DAH, Inc. has issued a 12% bond that is to mature in nine years. The bond had a 1,000 dollar par value and interest is due to be paid semiannually. If your required rate of return is 10 percent,
A bond that pays interest forever & has no maturity is a perpetual bond. In what respect is a perpetual bond similar to a non growth common stock?
Compute the duration of a bond which matures in five years, has a face value of $1,000 & a coupon rate of 8%, when the interest rate on comparable assets is 3 percent.
Compute the price of the following bonds, where F is the face value, c is the coupon rate, N is the number of years to maturity, & it is the interest rate [or discount rate, or yield]:
Describe the Treasury yield curve by using the "Illustrative Treasury Yield Curves" [Figure 6-5] in your text, Fundamentals of Financial Management.
Find a bond on the Wall Street Journal or other online service & determine its YTM. Describe why your bond is trading at a premium or discount based on current market conditions.
Cuinn Electric Company has outstanding a bond issue that will mature to its 1,000 dollar par value in 12 years. The bond has a coupon rate of 15 percent and pays the interest yearly.
Determine which one of the following rates is the best measure of the raised purchasing power you can realize from a bond investment?
A bond has a par value of 1000 dollar, a current yield of 6.452%, annual interest payments, and eight years to maturity. The bond quote is 92.976
Ventures Unlimited has 7% coupon bonds outstanding with a face value of 1000 dollar and a market price of $926.97. The bonds pay interest semiannually & have a yield to maturity of 7.87%.
Beachwear' n More bonds have a 9.5% coupon and pay interest semi-annually. Currently, the bonds are quoted at 106.315. The bonds mature in eight years.
Abond produces a real rate of return of 5.03 percent for a time period when the inflation rate is 3.30%. Calculate the actual nominal rate of return on the bond?
Last year, you earned a rate of return of 8.13% on your bond investments. During that time the inflations was 3.68%. Calculate the real rate of return?
The Boston Clothing Co. has $1000 face value bond outstanding with a market price of 1012 dollar. The bond pays interest yearly, matures in twelve years, and has a yield to maturity of 7.842%.
Leggio Corporation issued twenty year, 7 percent yearly coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds has dropped to 6 percent.
Current Yield and yield to maturity. A bond has a $1,000 par value, 10 years to maturity, a 7% annual coupon, & sells for 985 dollar.
Calculate the rate of an individual bond from this issue to an investor who purchases the Wilson bond on the date of issue [November 15, 2004] suppose they require an 8% return?
A corporate bond matures in 14 years. The bond has an 8% semiannual coupon & a par value of 1,000 dollar.
You intend to buy a ten year, $1,000 face value bond that pays interest of $60 each six months. Its yield to maturity is 10% with semiyearly compounding.
A company issues $20,000,000, 7.8%, 20-year bonds to yield 8 percent on January 1, 2007. Interest is paid on June 30 & December 31. The proceeds from the bonds are $19,604,145.