Dynamic Systems has an outstanding bond that has a $1,000 par value and an 11 percent coupon rate. Interest is paid semiannually. The bond has 13 years remaining until it matures. Today the going interest rate is 12 percent, and it is expected to remain at this level for many years in the future. Compute the current yield. Do not round intermediate calculations. Round your answer to two decimal places.   _______% Compute the capital gains yield that the bond will generate this year. Do not round intermediate calculations. Round your answer to two decimal places.   _______%

Q: Kempton Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity.…

A: MS-Excel --> Formulas --> Financials --> Rate Therefore, the yield to maturity is 8.35%.

Q: What is the yield to maturity?  For the coming year, what are the expected current and capital…

A: Yield to maturity refers to the total return expected on the bond till it matures.

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A: GIVEN, PAR =$1000 COUPON RATE =6% N=10 YTM =8%

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A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

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A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Kempton Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity.…

A: Bond is financial security used by organizations to raise debt funds. Bond carries fixed coupon that…

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A: Given that: Coupon rate = 6% Period = 10 years Par value of bond = $1000 Annual interest rate = 8.4%

Q: Old World Markets has $1,000 face value bonds outstanding that pay interest semiannually, mature in…

A: Given:

Q: Kempton Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity.…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

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A: The corporation and government can raise finance by issuing bonds. The borrower i.e bond issuer is…

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A: Bond is a financial instrument that gives bondholder a legal right of receiving payments on regular…

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A: Solution Given Face value 1000 Coupon rate 8% Life 10 years Required rate of…

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A: Price of bond is the present value of coupon payment and present value of par value of bond taken on…

Q: The Cougar Corporation has issued 20-year semi-annual coupon bonds with a face value of $1,000. If…

A: A financial instrument that does not affect the ownership of the common shareholders or management…

Q: Sadik Inc.'s bonds currently sell for $1,242.65 and have a par value of $1000. They pay a $105.00…

A: The yield to call on the bond can be calculated using the RATE function of excel. Inputs of the RATE…

Q: compute the exact yield to maturity.

A: Yield to maturity is the expected rate of return if the investor holds the security until its…

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A: we will only answer the first three subparts. For the remining subparts kindly resubmit the question…

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A: Given that: Bond face value = $1,000 Interest rate =10% Maturity period= 6 years Bond market price =…

Q: Laurel, Inc., and Hardy Corp. both have 7 percent coupon bonds outstanding, with semiannual interest…

A: The price of the bond depends on the rate of coupon payments and the interest rate in market. If the…

Q: Kempton Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity.…

A:

Q: Eades Corp. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The…

A:

Q: Required:   What is the current

A: Current yield Current Yield is the rate of return on a bond investment. Current Yield is the annual…

Q: Complex Systems has an outstanding issue of $1,000- par-value bonds with a 12% coupon interest rate.…

A: Present value of any bond is the sum total of discounted coupon and the redemption value.

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A: The yield to maturity (YTM) is the rate earned by the bondholder in the life of the bond assuming…

Q: Taussig Corp.'s bonds currently sell for $960. They have a 6.35% annual coupon rate and a 20-year…

A: The bond is a discount bond hence, its YTM is lower than the YTC but higher than the nominal yield.…

Q: Potter Industries has a bond issue outstanding with a 6% coupon rate with semiannual payments of…

A: The question is based on the concept of Security Valuation

Q: New Markets has $1,000 face value bonds outstanding that pay interest semiannually, mature in 20…

A: Working note:

Q: Maroon Two Inc. has just issued 10,000 coupon bonds with face value of $1,000, coupon rate of 9%,…

A: Bond price is defined as the present discounted value for the future cash stream, which used to be…

Q: Pelzer Printing Inc. has bonds outstanding with 24 years left to maturity. The bonds have a 12%…

A: A financial instrument that does not affect the ownership of the common shareholders or management…

Q: hen Yi Computers has an outstanding issue of bond with a par value of $1,000, paying 12 percent…

A: Current yield of bond =Annual coupon paymentCurrent market price Current market price is not give…

Q: Pelzer Printing Inc. has bonds outstanding with 9 years left to maturity. The bonds have a 8% annual…

A: Par value of bond= $1000 Time to maturity= 9 years Coupon rate=8% Annual interest= $80 Bond Price=…

Q: Pelzer Printing Inc. has bonds outstanding with 24 years left to maturity. The bonds have a 12%…

A: Following formula will be used:

Q: What is the yield to maturity? b. What is the yield to call if they are called in 5 years? c.…

A:

Q: Zhen Yi Computers has an outstanding issue of bond with a par value of $1,000, paying 12 percent…

A: Hi, thanks for the question. Multiple questions are present in this post. As per company guidelines,…

Q: Expected return     %_________________

A: Coupon rate of interest = 7.33%*6/12                                       = 3.665% per period…

Q: Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of $1,000.…

A: What is the bond's nominal yield to maturity?-   Use the financial calculator or excel to solve this…

Q: Dynamic Systems has an outstanding bond that has a $1,000 par value and a 9 percent coupon rate.…

A: Intreast for 6 months =1000×9%×6/12=45 YTM For 6 months =12×6/12=6% Number of periods =10×2=20…

Q: BVA, Inc. has two bond issues outstanding, each with a par value of $1,000. Information about each…

A: Bonds are the debt security which is offered or issued by the corporates or the government to…

Q: Sadik Inc.'s bonds currently sell for $1,334.00 and have a par value of $1000. They pay a $105.00…

A: The yield to call on the bond can be calculated using the RATE function of excel. Inputs of the RATE…

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A: The term bonds refer to the debt instruments that are issued with a motive to raise debt from the…

Q: Brooks Inc.'s callable bonds are currently selling for $1,300. They pay a coupon rate of 10%…

A: Yield to call (YTC) is a return on bond held by an investor anytime before the date of its maturity.…

Q: Two years ago, Company XYZ issued  $100 million worth of ten-year bonds with a face value of…

A: The market price is the present value of the coupons and the principal payment, at the rate of…

Q: Potter Industries has a bond issue outstanding with a 6% coupon rate with semiannual payments of…

A: Semi-annual coupon (PMT) = $30 Face Value (FV) = $1000 Number of periods to maturity (n) = 10*2 =20…

Q: Zhen Yi Computers has an outstanding issue of bond with a par value of $1,000, paying 12 percent…

A: First we will find the bond price use 14% as required rate of return (yield to maturity) . After…

Q: Kholdy Inc's bonds currently sell for $1,275. They pay a $120 annual coupon and have a 20- year…

A: Yield to maturity is the rate of return a bond generates in its lifetime assuming to be held till…

Q: Dynamic Systems has an outstanding bond that has a $1,000 par value and an 8 percent coupon rate.…

A: Face value = $1000 Coupon = (8% of $1000) / 2 = $40 n = 10 years = 20 periods r = 10% per annum = 5%…

Q: kingston Enterprises has a 14-year bond issue outstanding that pays a 10% coupon. The bond is…

A: Yield to maturity is the rate of return that the investor will get after maturing the bond. It shows…