Bond prices. Price the bonds from the following table with quarterly coupon payments: Hint: Make sure to round all intermediate calculations to at least seven decimal places. a Find the price for the bond in the following table: (Round to the nearest cent.) Years to Yield to Par Value Coupon Rate Maturity Maturity Price $5,000.00 11% 10 11% i Data Table - X (Click on the following icon o in order to copy its contents into a spreadsheet.) pls

Bond prices. Price the bonds from the following table with quarterly coupon payments: Hint: Make sure to round all intermediate calculations to at least seven decimal places. a Find the price for the bond in the following table: (Round to the nearest cent.) Years to Yield to Par Value Coupon Rate Maturity Maturity Price $5,000.00 11% 10 11% i Data Table - X (Click on the following icon o in order to copy its contents into a spreadsheet.) pls

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter5: The Cost Of Money (interest Rates)

Section: Chapter Questions

Problem 17PROB

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You have estimated spot rates as follows: r1 = 6.80%, r2 = 7.20%, r3 = 7.50%, r4 = 7.70%, r5 = 7.80%. a. What are the discount factors for each date (that is, the present value of $1 paid in year t)? (Do not round intermediate calculations. Round your answers to 3 decimal places.) b. Calculate the PV of the following $1,000 bonds assuming an annual coupon and maturity of : (i) 6.8%, two-year bond; (ii) 6.8%, five-year bond; and (iii) 11.8%, five-year bond. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Bato Co is currently estimating the value of its securities given the following information: Government securities currently trade at 4.5% Credit spread for Bato Co is estimated as follows based on its maturity 3 year maturity - 3.5% 4 year maturity - 5.0% 5 year maturity - 6.0% Based on current estimates the Beta of Bato is estimated at 0.75 Market risk premium for equity instruments is estimated at 6.5% The following summarizes the instruments currently issued by Bato: Bond Graphite - Php500,000 face value bond with a 5-year tenor carrying 8.0% coupon issued two years ago Bond Quartz - Php750,000 face value bond with a 4-year tenor carrying 8.0% coupon issued just today Bond Marble - Php1,000,000 face value bond with a 5-year tenor carrying a 12.0% coupon issued last year 10,000 common shares - Bato just declared a dividend of Php2.50 per share and is expected to grow by 20% over the next five years before slowing down to 5% beginning year 6 23. How much is the value of Bond…
If the following quotes are on September 15, 2012, what was the coupon rate for the JD.VR bonds with $1,000 face values and semiannual payments? Company (Ticker) Coupon Maturity Last Price Last Yield $ Vol. (000s) Jim Doe (JD.VR) ? Sep 15, 2040 123.55 8.8 7,059 (Do not include the percent sign (%).Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
DMA Corporation has bonds on the market with 14.5 years to maturity, a YTM of 7.5%, and a current price of $1,061. The bonds make semiannual payments and have a par value of $1,000. What must the coupon rate be on these bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Nikita Enterprises has bonds on the market making annual payments, with eleven years to maturity, a par value of $ 1,000, and selling for $982. At this price, the bonds yield 7.6 percent. What must the coupon rate be on the bonds? ( Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g 32.16.)
P9-16 (similar to) Question Help (Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 7 percent interest annually and have 13 years until maturity. You can purchase the bond for $1,105. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 7 percent? a. The yield to maturity on the Saleemi bonds is nothing%. (Round to two decimal places.)
All the securities below have annual payments. [Do not round interim calculations] Security Rating Maturity (yrs) Face Value Coupon Price T-Bill 1 $1,000 0% $982.33 T-Note 5 $1,000 2.40% $992.44 T-Bond 10 $1,000 3.25% $1,005.53 T-Bond 20 $1,000 3.90% $1,002.26 Corp Bond BBB 5 $1,000 3.80% $944.55 Corp Bond AA 10 $1,000 3.40% $968.12 Corp Bond A 20 $1,000 5.10% $982.35 What price would you pay for a 5-year, A bond with a coupon rate of 2.70%, a $1,000 Face Value and annual payments? 1. $958.32 2. $945.39 3. $1,001.33 4. $1,09.56 5. None of the above
Draiman Corporation has bonds on the market with 23.5 years to maturity, a YTM of 7 percent, a par value of $1,000, and a current price of $1,051. The bonds make semiannual payments. What must the coupon rate be on these bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Nikita Enterprises has bonds on the market making annual payments, with ten years to maturity, a par value of $1,000, and selling for $956. At this price, the bonds yield 6.3 percent. What must the coupon rate be on the bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Use the following information about a hypothetical government security dealer named M.P. Jorgan. Market yields are in parenthesis, and amounts are in millions. All securities are selling at par equal to book value. (4 points) Assets Liabilities and Equity Cash $10 Overnight repos $250 1-month T-bills (7.05%) 85 Subordinated debt 3-month T-bills (7.25%) 100 7-year fixed rate (8.55%) 140 2-year T-notes (7.50%) 90 8-year T-notes (8.96%) 100 5-year munis (floating rate) (8.20% reset every 6 months) 50 Equity 45 Total assets $435 Total liabilities &…
Workman Software has 9.4 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and currently sell for 107.5 percent of par. a. What is the current yield on the bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the effective annual yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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