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What is the maximum price of an 8% coupon, 15 year Corporate bond could theoretically sell for, assuming $1,000 par value.
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- What price would you pay for a 10-year, AA bond with a Face Value of $1,000 and a coupon rate of 7.10%?What is the yield to maturity (YTM) of a semiannual corporate bond with 13 years to maturity, a coupon rate of 8% per year, a $1,000 par value, and a current market price of $1,150? Group of answer choices 3.15 % 5.31 % 3.45 % 6.29%Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for 1,135.90, producing a nominal yield to maturity of 8%. However, the bond can be called after 5 years for a price of 1,050. (1) What is the bonds nominal yield to call (YTC)? (2) If you bought this bond, do you think you would be more likely to earn the YTM or the YTC? Why?
- What is the value of a 15-year, $1000 par value, 1.5% coupon bond with annual payment if the required rate of return is 2.8%.What is the market price of a redeemable (at par) bond, with a maturity date in 4 years’ time, and a coupon rate of 10%, if current cost of debt, Kd (return required or yield) is 8%?A 100-year corporate bond has a coupon rate of 5% with semi - annual payments. If the current value of the bond in the marketplace is $400, then what is the Yield - to - Maturity (YTM)?
- Calculate the market conversion price for a convertible bond with par value of $4000, coupon rate of 5%, market price of $4000, a conversion ratio of 16, and current stock price of $202. 1. Assuming, the issuing company pays an annual dividend of $12 per share, what is the favorable income differential (yield advantage) per share for this bond? 2. Calculate the premium payback period for this bond.Suppose that you purchased a Baa rated $ 1000 annual coupon bond with a 5% coupon rate and a 7-year maturity at par value. If you sold the bond two years later, and the yield on comparable debt 7.666 %, what would your capital gain (+)/loss(-) be? (Enter dollars and cents. )How is a bond’s value determined? What is the value of a 10-year, $1,000 par value bond with a 10% annual coupon if its required return is 10%?
- Suppose a company issues a bond with a par value of €1,000, 5 years to maturity, and a coupon rate of 8.5 percent paid annually. If the yield to maturity is 7.5 percent, what is the current price of the bond?Suppose your firm issues a €100,000,000 5-year bond with a coupon rate of 8% per annum (assume annual compounding). The bond will sell at face value to investors. The underwriting spread is an up-front fee of 2%. What is the actual cost of this debt? Please enter your answer as % -- e.g. if your answer is 2.34% type in 2.34.To expand its business, the ABC factory would like to issue a bond with par value of P1,000, coupon rate of 10 percent, and maturity of 10 years from now. What is the value of the bond if the required rate of return is 8%? *
