What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $925, if it pays 8% fixed interest for the duration of the bond?. yield = [ ?] % Give your answer as a percent rounded to the nearest hundredth. Hint: yield = interest paid price paid %3D Enter
Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $925,…
A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…
Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $925,…
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Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $950,…
A: Face Value of Bond =$ 1000 Issued Price or Price Paid = $950 Interest Rate = 6% Interest Paid =…
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Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $925,…
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Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $950,…
A: GIVEN, FACE VALUE = $1000 PRICE = $950 INTEREST RATE = 8%
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Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $950,…
A: given information face value = $1000 discount price = 950 interest rate = 6%
Q: What is the bond's nominal coupon interest rate?
A: Face value FV = 1000 For semi annual N= 30*2=60 YTM= 10.55/2 = 5.275% Currnet price of bond = 925
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Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $925,…
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- aa.2 Assumes Venture Healthcare sold bonds that have a ten-year maturity, a 12 percent coupon rate with annual payments, and a $1,000 par value. What would be the bonds value? Hint: Watch the Homework Hint video to figure out how to calculate this using Excel. Choice: $750 Choice: $1,000 Choice: $1,500 Choice: $2,000Y8 Here are data on $1,000 par value bonds issued by Caterpillar and Intel. Assume you are thinking about buying these bonds. CaterpillarIntelCoupon5%4%Years to Maturity810Required Return4%5% Answer the following questions: a) Assuming interest is paid annually, calculate the values of each of the bonds b) How would these values change if the coupon was paid semiannually ( c) Assume that the bonds with the coupon that is paid annually (point a) are selling for the following amounts: · Caterpillar $1,050 · Intel $980 What are the expected rates of return (YTM) for each bond? d) How would change the price of each bond if the required rate of return (current 4% for Caterpillar and 5% for the Intel and with annual coupon) increased by 2% What will you deduce about the relationship between market interest rate and bond prices? .Hello, How do i solve this corporate finanace question without the use of excel. A financial calculator can be used if required. Can you please show each step in the calculation process? Find the annual rate of this coupon bond: A corporate bond with a face value of $1,000 and coupons paid semi-annually, sells for $1,058.39. The term to maturity is 15 years. The yield to maturity of similar bonds is 9.5%.
- Doha plc has some surplus funds that it wishes to invest in bonds. The company requires a return of 15% on bonds, and the finance director has asked you to analyse whether it should invest in either of the following bonds that are available:Company A: Expected profit 12% bonds, redeemable at par at the end of two more years, with a current market value of QAR 95 per QAR 100 bondCompany B: Expected profit 8% bonds, redeemable at QAR110 at the end of two more years, with a current market value of QAR 95 per QAR 100 bonda. Calculate the expected value (price) of the two bonds and evaluate if either offer an appropriate return for Doha Plc.b. Critically evaluate what would be the impact on the price of bonds if Doha Plc reduces their required return.c. Critically evaluate and discuss the factors that should be considered by the directors of a company when choosing whether to use debt or equity finance for a new projectd. Recently one director has attended a finance conference, on their…(a) Consider the following pair of bonds which are alike except for the characteristics listed. Bond A Bond B Coupon rate 4% 0% Bond rating AAA BBB Convertible Yes No Discuss which bond should have the higher yield to maturity. (b) Company A is a fast food restaurant selling Ramen.Company B is a manufacturer of beauty products.The operating characteristics of a company is shown below:Cash cycle = -10 daysSuppliers sell their goods to the company on a net 30 days basis Appraise which of the companies, A or B, comes closest to the operating characteristics described above.How would you solve these using a financial calculator? What values would you enter for N, I/YR, PV, PMT, and FV? *assume corporate bonds pay 2x annually and have a FV on $1000 *MACRS table attached a) Calculate the YTM of a 20-year corporate bond with a market price of $1,020, interest rate of 4.5% with 15 years left to maturity. [YTM b) What is the MACRS depreciation for a 5-year property asset purchased for $50,000 in the 2nd year?
- 1) Your firm wishes to issue a 20-year bond, an annual coupon of 6%, and the price has been determined to be RM880. The floatation cost of the issuance is 2% of the selling price. The tax rate is 24%. a) The net selling price is RM________. b) Annual YTM is ________% c) After tax cost of debt is ______% Answer by using formula not a Excel don't use chatgptOn March 1, 2018, you purchased $1.000.000 face value of a bond that pays an annual coupon of $79 every January 1st. The yield-to-maturity is currently 6%. You agreed with the seller on a price of 96.5% Your back office, which is responsible for sending the correct cash amount, asks you a) how much money they should exactly send to the seller? (assume 365 days calendar basis)? b) if the amount would increase if the yield-to-maturity would increase to 9%? Why? c) if the amount would increase if the coupon rate would be 8%?You are analyzing the cost of debt for a firmYou know that the firm's 14-year maturity7.8 percent coupon bonds are selling at a price of $1,052.38The bonds pay interest semiannually. If these bonds are the only debt outstanding for the firm, answer the following questions Only typed answer
- An investor has $633,000 to invest in bonds. Bond A yields an average of 8% and the bond B yields 5%. The investor requires that at least 3 times as much money be invested in bond A as in bond B. You must invest in these bonds to maximize his return. This can be set up as a linear programming problem. Introduce the decision variables: ?=dollars invested in bond A ?=dollars invested in bond B Compute ?+? $ ________. Round to the nearest cent.ou are considering a 30-year, $1,000 par value bond. Its coupon rate is 11%, and interest is paid semiannually. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet If you require an "effective" annual interest rate (not a nominal rate) of 11.29%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent. $ fill in the blank 2Markway Inc. is contemplating selling bonds. The issue is to be composed of 750 bonds, each with a face amount of $800. Required: 1. Calculate how much Markway is able to borrow if each bond is sold at a premium of $30.$fill in the blank 23f1fdf81fe3f91_1 2. Calculate how much Markway is able to borrow if each bond is sold at a discount of $10.$fill in the blank 23f1fdf81fe3f91_2 3. Calculate how much Markway is able to borrow if each bond is sold at 92% of par.$fill in the blank 23f1fdf81fe3f91_3 4. Calculate how much Markway is able to borrow if each bond is sold at 103% of par.$fill in the blank 23f1fdf81fe3f91_4 5. Assume that the bonds are sold for $625 each. Prepare the entry to recognize the sale of the 750 bonds. Cash fill in the blank 2552a6f29fa5030_2 fill in the blank 2552a6f29fa5030_3 Discount on Bonds Payable fill in the blank 2552a6f29fa5030_5 fill in the blank 2552a6f29fa5030_6 Bonds Payable fill in the blank 2552a6f29fa5030_8 fill…