Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Plz answer all 4 #1 a Assume a par value of $1,000. Caspian Sea plans to issue a 17.00 year, annual pay bond that has

image text in transcribed

Plz answer all 4

#1 a Assume a par value of $1,000. Caspian Sea plans to issue a 17.00 year, annual pay bond that has a coupon rate of 5.00%. If the yield to maturity for the bond is 5.0%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. #2 Caspian Sea Drinks needs to raise $42.00 million by issuing bonds. It plans to issue a 15.00 year semi-annual pay bond that has a coupon rate of 5.18%. The yield to maturity on the bond is expected to be 4.80%. How many bonds must Caspian Sea issue? (Note: Your answer may not be a whole number. In reality, a company would not issue part of a bond.) Submit Answer format: Number: Round to: O decimal places. #3 The market price of a semi-annual pay bond is $983.92. It has 19.00 years to maturity and a yield to maturity of 7.13%. What is the coupon rate? Submit Answer format: Percentage Round to: 0 decimal places (Example: 9%, % sign required. Will accept decimal format rounded to 2 decimal places (ex: 0.09)) #4 Derek borrows $267,572.00 to buy a house. He has a 30-year mortgage with a rate of 4.38%. After making 86.00 payments, how much does he owe on the mortgage? Submit Answer format: Currency: Round to: 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Lessons In Corporate Finance

Authors: Paul Asquith, Lawrence A. Weiss

2nd Edition

1119537835, 978-1119537830

More Books

Students also viewed these Finance questions