15. [CH6] A bond is quoted at 99.25% with a 5% coupon in the financial press: a. What is the current price of the bond? b. What is the amount of coupons paid annually? Semiannually? c. Based on the given information, is the YTM greater than or less than 5%? $992.50 $50: $25 Greater than 16. [CH] Suppose Eagle Endeavors needs to raise $20 million and they want to issue 15-year bonds to do so. The required return on the issue will be 6.75% and they are looking at two different alternatives: a 6.75% coupon bond (coupons paid semiannually) and a zero coupon bond. The firm's tax rate is 21%. How many coupon bonds will they need to issue to raise the $20 million? How many zeroes will they need to issue? Coupon Bonds: Need to issue 20,000 bonds (Bond Value = $1,000.00) Zero Coupon Bonds: Need to issue 54,137.19 bonds (Bond Value - $369.43) 17. [CH6] Calculate the yield-to-maturity of a bond maturing in 10 years that pays interest semiannually. The bond is currently trading at $958.73. The coupon rate is 8%. 8.62% 18. [CH6] ABC Corp has bonds currently selling for $1,025.89 and matures in 5 years. It has a face value of $1.000. It has a coupon of 6 %, paid annually, what is the yield-to-maturity? 6.13%