Hi, can you please complete these problems? This will be the last problem sets. I gave you $25 because some of the problems have multiple steps. I will also tip very good at the end since this is the last problem set. My way of saying thank you very much for all your help and hard work. Thank you very much. I really appreciate all your help with everything.
(Related to Checkpoint 9.1) [Floating-rate loans] The Bensington Glass Company entered into a loan agreement with the rm's bank to nance the rm's working capital. The loan called for a oating rate that was 28 basis points (0.28 percent) over an index based on LIBOR. In addition, the loan adjusted weekly based on the closing value of the index for the previous week and had a maximum annual rate of 2.19 percent and a minimum of 1.73 percent. Calculate the rate of interest for weeks 2 through 10. la Week 1 1.93% Week 2 1.68% Week 3 1.53% Week 4 1.36% Week 5 1.64% Week 6 1.68% VWeek 7 134% (Related to Checkpoint 9.2) [Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 3 percent interest annually and have 11 years until maturity. You can purchase the bond for $1,065. a. What is the yield to maturity on this bond? b. Should you purchase the band if the yield to maturity on a comparableen'sk bond is 6 percent? {Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation relationships] The 11year, $1,000 par value bonds of Waco Industries pay 8 percent interest annually. The market price of the bond is $855, and the market's required yield to maturity on a comparablensk bond is 12 percent. 3. Compute the band's yield to maturity, b. Determine the value of the bond to you given the market's required yield to maturity on a comparableerisk bond. c. Should you purchase the bond? {Related to Checkpoint 9.6) [Ination and interest rates) What would you expect the nominal rate of interest to be iithe real rate is 3.9 percent and the expected ination rate is 7.3 percent? {Related to Checkpoint 9.3) [Bond valuation] Calculate the value of a bond that matures in 13 years and has a $1,000 par value. The annual coupon interest rate is 9 percent and the market's required yield to maturity on a comparablerrisk bond is 11 percent. The value of the bond is $ . (Round to the nearest cent.) {Related to Checkpoint 9.4} [Bond valuation) A bond that matures in 14 years has a $1,000 par value. The annual coupon interest rate is 12 percent and the market's required yield to maturity en a comparablerisk bond is 14 percent. What would be the value of this bond rt it paid interest annually? What would be the value of this bond if it paid interest semiannually'? {Related to Checkpoint 9.3} [Bond valuation] Pybus, Inc. is considering issuing bonds that will mature in 18 years with an annual coupon rate of6 percent. Their par value will be $1,000, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds and, if it does, the yield to maturity on similar AA bonds is 115 percent, However, Pybus is not sure whether the new bonds will receive a AA rating, If they receive an A rating, the yield to matun'ty on similar A bonds is 125 percent, What will be the price of these hands if they receive either an A or 3 AA rating? {Related to Checkpoint 9.2) [Yield to maturity) The market price is $1 I1 50 for a 14year bond ($1 ,00[) par value) that pays 11 percent annual interest, but makes interest payments on a semiannual basis (55 percent semiannually), What is the bond's yield to maturity? {Related to Checkpoint 9.3) (Bond valuation] Doisneau 22year bonds have an annual coupon interesl of 1" percent, make interesl payments on a semiannual basis, and have a $1,000 par value. If the bonds are trading with a markel's required yield to malunty of 1? percent, are these premium or discount bonds? Explain your answer. What is the price of the bends? {Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation} Fingen's ti'eyear, $1,000 par value bonds payr 13 percent interest annually. The market price of the bonds is $850 and the market's required yield to maturity on a comparableen'sk bond is 14 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond? {Related to Checkpoint 9.2) [Yield to maturity] Abner Corporation's bonds mature in 1? years and pay 12 percent interest annually. It you purchase the bonds for $1,0T5, what is your yield to maturity? [Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation) The 12year $1,000 par bonds of Vail inc. pay 12 percent interest. The market's required yield to maturity on a comparablensk bond is 9 percent. The current market price for the bond is $1,120. a. Determine the yield to maturity. b. What is the value of the bonds to you given the yield to maturity on a comparablerisk bond? 1:. Should you purchase the bond at the current market price
