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MLK Bank has an asset portfolio that consists of $180 million of 15-year, 10.5 percent annual coupon, $1,000 bonds that sell at par.
a-2. What will be the new prices if market yields change immediately by ± 2.00 percent?
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- MLK Bank has an asset portfolio that consists of $180 million of 15-year, 10.5 percent annual coupon, $1,000 bonds that sell at par. a-1. What will be the bonds’ new prices if market yields change immediately by ± 0.10 percent?sunburn sunscreen has a zero coupon bond issue outstanding with a $21,000 face value that matures in one year. the current market value of the firm's assets is $22,800. The standard deviation of the return on the firm's assets is 26 percent per year, and the annual risk-free rate is 5 percent per year, compounded continuously. based on the black-scholes model, what is the market value of the firm's equity and debt?Sunburn Sunscreen has a zero coupon bond issue outstanding with a $9,000 face value that matures in one year. The current market value of the firm's assets is $9,600. The standard deviation of the return on the firm's assets is 36 percent per year, and the annual risk-free rate is 7 percent per year, compounded continuously. Based on the Black Scholes model, what is the market value of firm’s equity and the market value of the firm's debt?
- Frostbite thermalwear has a zero coupon bond issue outstanding with a face value of 18,000 that matures in one year. The curent market value of the firm assets is 22,000. The standard deviation of the return on the firm assets is 51 percent per year, and the annual risk free rate is 7 percent per year, compounded continuously. what is the Market value of the firm's equity? What is the Market value of the firm's debt?Old World Markets has $1,000 face value bonds outstanding that pay interest semiannually, mature in 13 years, and have a 5.3 percent coupon. The current price is quoted at 98.25. What is the yield to maturity? Can the calculator and excel solution be provided?