Suppose your corporation want to rise 1’500,000 for 12 years and will issue annual bonds with a face value of 1,000 each one. You know that the market will ask a yield of 11%. The market price of each bond is 750. Calculate how much money you will at the end of each year to pay the emission’s coupons.
A. $220,000.00
B. $200,000.00
C. $142,986.36
D. $107,239.77
Calculate the price of a bond issued on 2/14/2017, with maturity on 2/14/2027, with a coupon rate of 4.8% paid semiannually, 5% yield. Use the Excel Price function with basis=0. Assume face value of $1000. Hint: Remember that price is calculated assuming per $100 face value. Be careful with how to set the settlement (better read again Excel help).
A. $984.41
B. $984.34
C. $98.44
D. $98.43