McCoy Industries' bonds currently sell for $1,302.40 and have a $1,000 par value. They have a 6.25% annual coupon rate and a 10-year maturity. What is the bond' s yield to maturity? a. 1.33% b. 2.00% c. 2.75% d. 4.02% е. 5.50%
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McCoy Industries' bonds currently sell for $1,302.40 and have a $1,000 par value.
They have a 6.25% annual coupon rate and a 10-year maturity. What is the bond' s yield to maturity? a. 1.33% b. 2.00% c. 2.75% d. 4.02% е. 5.50%
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- Yield to Maturity and Yield to Call Arnot International’s bonds have a current market price of $1,200. The bonds have an 11% annual coupon payment, a $1,000 face value, and 10 years left until maturity. The bonds may be called in 5 years at 109% of face value (call price = $1,090). What is the yield to maturity? What is the yield to call if they are called in 5 years? Which yield might investors expect to earn on these bonds, and why? The bond’s indenture indicates that the call provision gives the firm the right to call them at the end of each year beginning in Year 5. In Year 5, they may be called at 109% of face value, but in each of the next 4 years the call percentage will decline by 1 percentage point. Thus, in Year 6 they may be called at 108% of face value, in Year 7 they may be called at 107% of face value, and so on. If the yield curve is horizontal and interest rates remain at their current level, when is the latest that investors might expect the firm to call the bonds?Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 10% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000, and a yield to maturity of 8.5%. What is the price of the bonds?Current Yield for Annual Payments Heath Food Corporations bonds have 7 years remaining to maturity. The bonds have a face value of 1,000 and a yield to maturity of 8%. They pay interest annually and have a 9% coupon rate. What is their current yield?
- A brand has bonds on the market with 19 years to maturity, a YTM of 11.0 percent, a par value of $1,000, and a current price of $1,206.50. The bonds make semiannual payments. What must the coupon rate be on these bonds? A. 13.71% B. 13.61% C. 27.27% D. 11.28% E. 22.60%Onipa Hia Mmoa Holdings bonds have an annual coupon payment of 7.25%. The bonds have a par value of 1,000, the price of the bonds today is GHS1,125.00 and matures in 13 years. What is the yield to maturity on these bonds? A. 5.56% B. 5.85% C. 6.14% D. 6.45%Baywa has an outstanding bond that has a coupon rate of 8.3%. What is the market price of this bond if it pays interest semiannually, has 15 years to maturity, and the current required rate of return is 9% on bonds of similar quality? a. $954 b. $1059 c. $1,000 d. $943
- Field Industries' outstanding bonds have a 20-year maturity and $1,000 par value. Their nominal yield to maturity is 9.02%, they pay interest semiannually, and they sell at a price of $820. What is the bond's nominal (annual) coupon interest rate? Group of answer choices 6.92% 7.06% 7.13% 7.27% 6.50%A $1,000 per value bond with a 5.8% coupon and semi-annual interest payments has 25 years to maturity. If the bonds are currently trading for $1,122.75, what is the cost of debt for the firm? 4.94% 5.12% 4.93% 4.50% 6.02%Zanobia Co.'s bonds currently sell for $1,150. They have a 8% annual coupon rate (but paid semiannually) and a 30-year maturity, and are callable in 10 years at $1,100. What is the yield to call of the bonds? Select one: O a. 6.64% O b. 4.34% O c. 4.57% O d. 4.12% e. 3.92% 4
- 1 Given below is information about three RM10000 par value bonds, each of which pays coupon annually. The required rate of return on each bond is 12%. Calculate the value of the bonds and determine whether the bond is selling at discount, premium or par value. Bond 1 . 2 3 Coupon Rate (%) 10 12 14 Maturity (years) 5 10 15 b. Calculate the Yield to Maturity (YTM)/ RRR for the example given below Bond par value RM10000 Coupon Rate 10% every year Maturity period 10 years Market Value of bond RM11800.00Haswell Enterprises' bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 10.5%, based on semiannual compounding. What is the bond's price? Select the correct answer. a. $746.52 b. $752.34 c. $743.61 d. $749.43 e. $740.70Sentry Corp. bonds have in annual coupon payment of 7.25%. The bonds have a par value of $1,000, a current price of $1,125, and they will mature in 13 years. What is the yield to maturity on these bonds? a. 5.56% b. 6.45% c. 5.85% d. 6.14% e. 6.77%
