Question
Caspian Sea Drinks needs to raise $20.00 million by issuing bonds. It plans to issue a 20.00 year semi-annual pay bond that has a coupon
Caspian Sea Drinks needs to raise $20.00 million by issuing bonds. It plans to issue a 20.00 year semi-annual pay bond that has a coupon rate of 5.16%. The yield to maturity on the bond is expected to be 4.81%. How many bonds must Caspian Sea issue? (Note: Your answer may not be a whole number. In reality, a company would not issue part of a bond.)
Answer format: Number: Round to: 0 decimal places.
Assume a par value of $1,000. Caspian Sea plans to issue a 13.00 year, semi-annual pay bond that has a coupon rate of 8.19%. If the yield to maturity for the bond is 7.84%, what will the price of the bond be?
Answer format: Currency: Round to: 2 decimal places.
Assume a par value of $1,000. Caspian Sea plans to issue a 4.00 year, semi-annual pay bond that has a coupon rate of 6.00%. If the yield to maturity for the bond is 6.0%, what will the price of the bond be?
Answer format: Currency: Round to: 2 decimal places.
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