Sunderland Company is issuing 8 yr bonds with a coupon rate of 5.9% and semiannual coupon pymts. If the current market rate for similar bonds is 8%... What will the bond price be? (Round intermediate calculations to 5 decimal places & the bond price to 2 decimal places.)   And if the company management wants to raise $1.25 million, how many bonds does the firm have to sell?

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A: In this question we need to calculate Bond price and how many bonds does the firm have to sell?

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A:

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A: Coupon rate is defined as the rate of the interest which paid to the bond holders through the bond…

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A: Given:

Q: what is the current bond price?

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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: Given:

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A: YTM or yield to maturity is the return that an investor gets if the bond is kept till maturity.

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A: Given:

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A: PERIOD (22*2) 44 COUPON RATE (6.20%/2) 3.10% PMT (COUPON AMOUNT) $31.00 PRESENT VALUE…

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A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

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A: Actual years to maturity is 12 years. But called in 8 years. So NPER = Number of years = 8 PMT =…

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Q: Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 8.4%…

A: YEILD to call is discount rate at which present value of callable value and coupon value equal to…

Q: Corso Inc. wants to raise $10 million by issuing 15-year zero coupon bonds with a face value of…

A: Amount to raise is $10 million Time period is 15 years Type of bond is zero coupon bond par value is…

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

Q: Bonaqua Alison Corporation Limited is planning to issue 10-year bonds with a face value of $1,000.…

A: Price of coupon bond = Semi Annual Coupon Amount * PVAF ( Semi Annual market rate, Number of half…

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

A:

Q: BEST Company bonds are yielding 12% and will mature in 10 years from now. The coupon rate is 14% and…

A: Price of bond = Coupon Amount * PVAF ( Semi annual rate, Number of periods) + Face value * PVIF (…

Q: Gabriele Enterprises has bonds on the market making annual payments, with 5 years to maturity, a par…

A: coupon amount is the amount a bond issuer pays to the bondholder during the life of the bond. It is…

Q: Marshall Company is issuing eight-year bonds with a coupon rate of 6.19 percent and semiannual…

A: Bonds are the units of obligation for corporates that are given by organizations and securitized as…

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A: Bond A bond is a financial instrument that pays a series of equal amount as coupon payment at equal…

Q: Harrimon Industries bonds have 5 years left to maturity. Interest is paid annually, and the bonds…

A: Yield to Maturity is the yield an investor can expect when the bond is held till maturity.

Q: Harrimon Industries bonds have 6 years left to maturity. Interest ispaid annually, and the bonds…

A: YTM stands for yield to maturity. It is the total rate of return which an investor earns from the…

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

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A: Par Value = 1000 Semi Annual Coupon Payments Coupon = Coupon Rate / 2 * Par Value = 7%/2 * 1000 = 35…

Q: Gabriele Enterprises has bonds on the market making annual payments, with 10 years to maturity, a…

A:

Q: Rhiannon Corporation has bonds on the market with 16.5 years to maturity, a YTM of 7.7 percent, a…

A: Solution- Number of periods = 16.5 * 2 = 33 Rate = 7.7% / 2 = 3.85% price = Semi annual coupon…

Q: Marshall Company is issuing eight-year bonds with a coupon rate of 6.19 percent and semiannual…

A: In this bond price is to be calculated. Present value of the face value is to be find out.

Q: The duration of these bonds is 8.1702 years. What are the predicted bond prices in each of the four…

A: Information Provided: Term = 15 years Coupon rate = 10.5% Price = $1000 Duration = 8.1702…

Q: Harrimon Industries bonds have 4 years left to maturity. Interest is paid annually, and the bonds…

A: Yield to Maturity = [Annual Interest + {(FV-Price)/Maturity}] / [(FV+Price)/2] Annual Interest =…

Q: GrowthSec Ltd has raised $10M in debt funding by issuing 100 5 year bonds with a face value of…

A: In this we have find the price of bond as present value of coupon payment and present value of par…

Q: New Hampshire Corp. has decided to issue three-year bonds denominated in 10 million Chinese yuan at…

A: It can be calculated using IRR function in excel IRR can be calculated by following function in…

Q: Potter Industries has a bond issue outstanding with an annual coupon of 6% and a 10-year maturity.…

A: Price of the bond is the discounted value of a future cash flow stream generated by the bond. It is…