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please solve through financial calculator if possible please solve through financial calculator if possible 1. The Dairy Delight wants to raise $1.0 million by selling
please solve through financial calculator if possible
please solve through financial calculator if possible
1. The Dairy Delight wants to raise $1.0 million by selling some coupon bonds at par. Comparable bonds in the market have a 6.5 percent annual coupon, 15 years to maturity, and are selling at 98 percent of par. What coupon rate should The Dairy Delight set on its bonds? 2. Whitts BBQ would like to issue some semiannual coupon bonds at par. Comparable bonds have a current yield of 9.16 percent, an effective annual yield of 9.68 percent, and a yield to maturity of 9.50 percent. What coupon rate should Whitts BBQ set on its bonds? 3. One year ago, Alpha Supply issued 15-year bonds at par. The bonds have a coupon rate of 6.5 percent and pay interest annually. Today, the market rate of interest on these bonds is 7.2 percent. How does the price of these bonds today compare to the issue price? 4. One year ago, you purchased a 7.5 percent annual coupon bond for a clean price of $980. The bond now has seven years remaining until maturity. Today, the yield to maturity on this bond is 6.87 percent. How does today's clean price of this bond compare to your purchase price? 5. The 6 percent coupon bonds of Precision Engineering are selling for 98 percent of par value. The bonds mature in eight years and pay interest semiannually. These bonds have current yield of percent, a yield to maturity of percent, and an effective annual yield of percent. 6. Red Mountain, Inc. bonds have a face value of $1,000. The bonds carry a 7 percent coupon, pay interest semiannually, and mature in 13.5 years. What is the current price of these bonds if the yield to maturity is 6.82 percent Step by Step Solution
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