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Help! I need shown how to do #9! 4 Whet is the prke today ifehe interest rate Commest on the answee to part ( is

Help! I need shown how to do #9!
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4 Whet is the prke today ifehe interest rate Commest on the answee to part ( is 10%, Current Market Rate 0% Time Until Maturity 5 years 4 Cakulate che mucket price ofs S1,000 face valae bond under the follorin Coupon Rate 12% 25 30 14 of 25 yea s che current yield on cach of the bonds in the previous a What as the bond's carrent price ifinterest is paid sermiannually as it is on mo h What is the price if the bond's isterest is paid annually? Comment on the ssued a 51,000 bond five years ago with an initial term 6 The Sampson Company issued a S rate ofo. Today's interest rate is 10%. coupon (a) and (bl. ralue of SI,5007 Two years later, similar bonds are yielding investors 6%, At what issoed a atebood c. What would the price be if interest were paid semiannually and the bond we 7, Fin-lt lnc. recently issued 10-year, $1,000 par value bonds at an 8% c price are Fix-It's b. What would thr bonds be selling for ifyields had risen to 12%? for the tentp C. Assume the conditions in part (a), Further assume interest rates remain at 6% years. What would happen to the price of the Fix-It bonds over that time? S. The Mariposa Co. has two bonds outstanding. One was issued 25 years a The other was issued five years ago at a coupon rate of99. Both bonds ago at coupon ratede gin were ori ssuedv erm-of30 years and face values of $1,000. The going interest rate is 14% today What are the prices of the two bonds at this time? h. Discuss the result of part (a) in terms of risk in investing in bonds. Longly Truckingis issuing a 20-year bond with a $2,000 face value tomorrow. The issue i an 8% coupon rate, because that was the interest rate while it was being planned. H increased suddenly and are expected to be 9% when the bond is marketed, what will owever, receive for each bond tomerrow? 10. Daubert, Inc, planned to issue and sell at par 10-year, $1,000 face value bonds totaling $400 million next month. The bonds have been printed with a 6% coupon rate. Since that printing, however, Moody's downgraded Daubert's bond rating from Aaa to Aa. This meansth bonds will have to be offered to yield buyers 7%. How much less than it expected will Daubert collect when the bonds are issued? Ignore administrative costs and commissions . Tutak Indastries issued a $1,000 face value bond a number of years ago that will mature n eight years.Similar bonds are yielding 8%, and the Tutak bond is currently selling for S1,291.31. Compate the coupon rate on this bond. (In practice, we generally aren't ssked to coupon rates.) (Hint: Substitute and solve for the coupon payment.) 12. John Wilson is a conservative investor who has asked your advice about two bonds be is consdering One s a seasoned ssue of the Capri Fashion Company that was first sold 22 yeani at a face value of $1,000, with a 25-year t find erm, paying 6%. The other is a new 30-yers ed 6%, so both bonds will pay the same coupon rate. . What is each boad worth today? Comment on your result. is coming out now at a face value of $1,000. Interes ites are e b. lfinterest rates were to rise to 12% today, estimate without making any ca bond would be worth.Review page 294 on estimating if necessary calculati s whatead

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