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help me please 23. Alpha Industry issued a bond which pays coupon interest semi-arnually and has 25 years remaining to maturity. Par value is $1,000,
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23. Alpha Industry issued a bond which pays coupon interest semi-arnually and has 25 years remaining to maturity. Par value is $1,000, the market price is $980.56 and the bond's coupon rate is 9.00%. The yield to maturity must be %. a. 9.00 b. 9.40 c. 9.20 d. 9.50 e. 9.70 24. After successfully completing F1 3300 , Rachael is considering buying some bonds to add to her recently started retirement account. She is looking at a bond issued by ABC that pays coupon interest semi-annually, has 13 years remaining to maturity, and has a yield-to-maturity is 6.20%. If the market price of the bond is $4,911.64 then bond's coupon rate must be %. Assume a $5,000 par value. a. 3.00 b. 4.00 c. 5.00 d. 6.00 e. 7.00 25. GSU Enterprises is issuing new bonds for a capital budgeting project. The bonds will mature in 20 years and have a coupon rate of 5.80% with semi-annual coupon payments (assume a par value of $1,000 on the bond). The current yield-to-maturity for similar bonds is 6.00%. The company hopes to raise $31,000,000 with the new issue. To raise the debt, how many bonds must the company issue? (Round your answer up to the nearest whole number). a. 36,379 b. 37,402 c. 33,781 d. 31,734 e. 30,397 26. Mason Company will pay out a dividend of $3.60 one year from today (i.e., D1=3.60 ). Its required rate of return is 11%. If the market expects that the dividend will grow at a constant rate of 4% per year forever, Mason's stock should sell for $ today. a. 43.64 b. 48.89 c. 52.50 d. 51.43 e. 54.29 Step by Step Solution
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