McConnell Corporation has bonds on the market with 15 years to maturity, a YTM of 6.6 percent, a par value of $1,000, and a current price of $1,256.50. The bonds make semiannual payments. What must the coupon rate be on these bonds? Multiple Choice 14.88% 9.42% 9.32% 7.42% 18.69%
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- Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual coupon (payable June 30 and December 31) on January 1, 2018, when the market rate of interest was 10%. Were the bonds issued at a discount or premium? Assuming the bonds sold at 92.288, what was the sales price of the bonds?Schallheim Corporation’s outstanding bonds have a $1,000 par value, a 14 percent semiannual coupon, 6 years to maturity, and an 11 percent yield to maturity (YTM). What is the bond’s price? a. $1,129.28 b. $1,126.92 c. $1,074.93 d. $740.31 e. $1,000.00Haswell Enterprises' bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 10.5%, based on semiannual compounding. What is the bond's price? Select the correct answer. a. $746.52 b. $752.34 c. $743.61 d. $749.43 e. $740.70
- A brand has bonds on the market with 19 years to maturity, a YTM of 11.0 percent, a par value of $1,000, and a current price of $1,206.50. The bonds make semiannual payments. What must the coupon rate be on these bonds? A. 13.71% B. 13.61% C. 27.27% D. 11.28% E. 22.60%Wonder World Ltd. outstanding bonds have a $1000 par value, a 9 percent semi-annual coupon, 8 years to maturity and an 8 percent YTM. What is the bond’s price? Select one: a. $1,028.60 b. $1,043.20 c. $946.26 d. $920.42 e. $1,058.26If the YTM on the following bonds are identical except, what is the price of bond B? Bond A Bond B Face value $1,000 $1,000 Semiannual coupon $45 $35 Years to maturity 20 20 Price $1,098.96 ?
- IS - Sampoerna. O Dashboard VitalSource Booksh. O Spotify - Web Player Company XYZ's bonds have 12 years remaining to maturity, interest is paid annually, the bonds have $1,000 par value, and the coupon rate is 8%. The bonds have a yield to maturity of 9%. What is the current market price of these bonds?* a. 828.78 b. 968.39 c. 1,000,00 d. 1,075.36 O e. none of the above Which of the following statement is (are) correct? a zero coupon bend means the bond does not give (pay) coupon until maturity O b. the price of zero coupon bond is always at discount until its maturity O c. the price of bond will be at discount when the coupon is lower than its interest ra da and b e. a, b and cDoisneau 22-year bonds have an annual coupon interest of 14 percent, make interest payments on a semiannual basis, and have a $1,000 par value. If the bonds are trading with a market's required yield to maturity of 12 percent, are these premium or discount bonds? Explain your answer. What is the price of the bonds? Question content area bottom Part 1 a. If the bonds are trading with a yield to maturity of 12%, then (Select the best choice below.) A. the bonds should be selling at a discount because the bond's coupon rate is less than the yield to maturity of similar bonds. B. the bonds should be selling at par because the bond's coupon rate is equal to the yield to maturity of similar bonds. C. there is not enough information to judge the value of the bonds. D. the bonds should be selling at a premium because the bond's coupon rate is greater than the yield to maturity of similar bondsDoisneau20-year bonds have an annual coupon interest of8 percent, make interest payments on a semiannual basis, and have a $1,000par value. If the bonds are trading with a market's required yield to maturity of18 percent, are these premium or discount bonds? Explain your answer. What is the price of the bonds?
- Fingen's 18-year, $1,000 par value bonds pay 13 percent interest annually. The market price of the bonds is $1,140 and the market's required yield to maturity on a comparable-risk bond is 10 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond? Question content area bottom Part 1 a. What is your yield to maturity on the Fingen bonds given the market price of the bonds? enter your response here%1. Below is information about three $10000 par value bonds, each of which pays coupon semiannually. The required rate of return on each bond is 14%. Calculate the value of the bonds and determine whether the bond is selling at discount, premium or par value. Bond Coupon Rate (%) Maturity (years) 1 8 5 2 14 10 3 16 15 2. Using the Interpolation Method to calculate the YTM for the below Bonds: > The par value $18000 > Coupon Rate 10% every year > Maturity period 10 years > Market Value of bond $21800Review the Bond Table below; all bonds have semi-annual payments. Security. Coupon Rate Face Value 0.00% $1,000 4.50% $1,000 5.00% $1,000 $1,000 1-yr Treasury 5-yr Treasury 10-yr Treasury 5-yr Corporate (rated A) Multiple Choice 10-year Corporate 8.40% (rated BBB) What is the BBB Default Risk Premium (rdp-BBB)? O O 4.80% 1.75% 2.20% 2.75% 3.40% None of the above Price $ 965.90 $991.18 $976.94 $912.46 $1,000 $1,044.66
