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1Pierre Dupont just received a cash gift from his grandfather. He plans to invest in a five-year bond issued by Venice Corp. that pays an
1Pierre Dupont just received a cash gift from his grandfather. He plans to invest in a five-year bond issued by Venice Corp. that pays an annual coupon of 5.45 percent. If the current market rate is 9.95 percent, what is the maximum amount Pierre should be willing to pay for this bond? (Round answer to 2 decimal places, e.g. 15.25.) Pierre should pay 2Diane Carter is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market interest rate for similar investments is 7.92 percent. Assume annual coupon payments. what is the current value of this bond? (Round answer to 2 decimal places,e.g. 15.25.) Current value of bond 3Rudy Sandberg wants to invest in four-year bonds that are currently priced at $768. These bonds have a coupon rate of 5 percent and make semiannual couporn payments. What is the current market yield on this bond? (Round answer to2 decimal places, eg. 15.25%.) Current market yield 0 4Four years ago, Lisa Stills bought six-year, 10.21 percent coupon bonds issued by the Fairways Corp. for $947.68. If she sells these bonds at the current price of $892.12, what will be her realized yield on the bonds? Assume similar coupon- paying bonds make annual coupon payments. (Round answer to 2 decimal places, eg. 15.25%.) Realised rate of return 0 5Four years ago, Lisa Stills bought six-year, 10.21 percent coupon bonds issued by the Fairways Corp. for $947.68. If she sells these bonds at the current price of $892.12, what will be her realized yield on the bonds? Assume similar coupon paying bonds make annual coupon payments. (Round answer to 2 decimal places, eg. 15.25%.) Realised rate of return 6The Gold Company is applying for a five-year term loan from its bank. The lender determines that the firm should pay a default risk premium of 1.75 percent over the Treasury rate. The five-year Treasury rate is currently 5.65 percent. The firm must also pay a marketability risk premium of 0.80 percent. What is the total borrowing cost to the firm? Total borrowing cost o/
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