Question
4A: A $1000 par value bond with a 12.48 percent coupon rate, currently selling for $914, has a current yield of________. Round the answer to
4A:
A $1000 par value bond with a 12.48 percent coupon rate, currently selling for $914, has a current yield of________. Round the answer to two decimal places in percentage form.
4C:
Flower Valley Company bonds have a 13.09 percent coupon rate. Interest is paid semiannually. The bonds have a par value of $1,000 and will mature 14 years from now. Compute the value of Flower Valley Company bonds if investors' required rate of return is 10.72 percent.
Round the answer to two decimal places.
4D:
Fresh Fruit, Inc. has a $1,000 par value bond that is currently selling for $1,126. It has an annual coupon rate of 15 percent, paid semiannually, and has 17-years remaining until maturity. What would the annual yield to maturity be on the bond if you purchased the bond today and held it until maturity?
Round the answer to two decimal places in percentage form.
4E:
2 years ago, Mini Max Inc. issued 30 year to maturity zero-coupon bonds with a par value of $1,000. Now the bond has a yield to maturity of 11.13 percent, compounded semi-annually. What is the current price of the bond?
Round the answer to two decimal places.
4F:
Dan is considering the purchase of Super Technology, Inc. bonds that were issued 3 years ago. When the bonds were originally sold they had a 27-year maturity and a 6.27 percent coupon interest rate, paid annually. The bond is currently selling for $1,493. Par value of the bond is $1,000. What is the yield to maturity on the bonds if you purchased the bond today?
Round the answers to two decimal places in percentage form.
4G:
Assume that today's date is April 15, 2015. Fresh Bakery Inc. bond is an annual-coupon bond.Par value of the bond is $5,000.
Calculate annual coupon interest payments.The answer should be calculated to two decimal places
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