A corporation issued 30-year, noncallable, 5.5% annual coupon bonds at their par value of $1,000 five years ago. Today, the market interest rate on these bonds is 7.5%. What is the current price of the bonds, given that they now have 25 years to maturity?
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A corporation issued 30-year, noncallable, 5.5% annual coupon bonds at their par value of $1,000 five years ago. Today, the market interest rate on these bonds is 7.5%. What is the current price of the bonds, given that they now have 25 years to maturity?
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- What is the current required rate of return on the equity of FINA corp? FINA issued 30 year bond 5 years ago. The current market value of debt is 50 million. The face value of the bond is 44.5 million. The coupon rate is 6%. The bond pays coupon semiannually. What is the current cost of debt?The Emory Corporation issued an 8%, 25-year bond 15 years ago. At the time of issue it sold for its par (face) value of $1,000. Comparable bonds are yielding 10% today. What must Emory’s bond sell for in today’s market to yield 10% (YTM) to the buyer? Assume the bond pays interest annually. Also calculate the bond’s current yield. a) Suppose the bond was issued 20 years ago what price must it be sold for today and also calculate the bond’s current yield b) Assume the bond was issued 5 years ago what price must it be sold for today and also calculate the bond’s current yield3) Sari Minerals Co. issued 15-year bonds three years ago with a coupon rate of 5%. These bonds make semiannual payments. If these bonds are currently selling for $950, what is their Yield to Maturity (YTM)
- One year ago, a company issued 15-year, noncallable, 7.75% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 6.75%. What is the current price of the bonds?D4) Grossnickle Corporation issued 20-year, noncallable, 8.5% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 19 years to maturity?One year ago a company issued 15-year, noncallable, 7.5% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity? * $1,162.00 $1,191.79 $1,132.95 $1,077.01 $1,104.62
- Suppose Hillard Manufacturing sold an issue of bonds with a 12-year maturity, a $1,000 par value, a 10% coupon rate, and semiannual interest payments. Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 5%. At what price would the bonds sell?One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 6.1% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity?Suppose Dillard Manufacturing sold an issue of bonds with a 10-year maturity, a $1,000 face value, a 10% coupon rate, and semiannual interest payments. Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 6%. At what price would the bonds sell? Suppose that 2-years after the issue date (as in part a) interest rates fell to 6%. Suppose further that the interest rate remained at 6%for the next 8 years. WAnhat would happen to the price of the bonds over time? Explain
- Watters Umbrella Corp. issued 20-year bonds 2 years ago at a coupon rate of 8.6 percent. The bonds make semiannual payments. If these bonds currently sell for 95 percent of par value, what is the YTM?Leggio Corporation issued 20-year, 7% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds has dropped to 6%. What is the new price of the bonds, given that they now have 19 years to maturity?West Corp. issued 15-year bonds 2 years ago at a coupon rate of 9.8 percent. The bonds make semiannual payments. If these bonds currently sell for 104 percent of par value, what is the YTM?