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Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1,000,6 years to maturity, and a coupon rate of 8.4 percent paid annually. If the YTM is 10.4 percent, what is the current bond price in euros? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Nikita Enterprises has bonds on the market making annual payments, with 15 years to maturity, a par value of $1,000, and selling for \$959. At this price, the bonds yield 8.8 percent. What must the coupon rate be on the bonds? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Coupon rate % Uliana Company wants to issue new 19 -year bonds for some much-needed expansion projects. The company currently has 9.8 percent coupon bonds on the market that sell for $1,138, make semiannual payments, have a par value of $1,000, and mature in 19 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. The next dividend payment by Im, Incorporated, will be $2.95 per share. The dividends are anticipated to maintain a growth rate of 4.50 percent forever. If the stock currently sells for $49.50 per share, what is the required return? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Five Star Corporation will pay a dividend of $4.70 per share next year. The company pledges to increase its dividend by 7.25 percent per year, indefinitely. If you require a return of 10 percent on your investment, how much will you pay for the company's stock today? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16
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