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( Related to Checkpoint 9 . 1 ) ( Floating - rate loans ) The Bensington Glass Company entered into a loan agreement with the
Related to Checkpoint Floatingrate loans The Bensington Glass Company entered into a loan agreement with the firm's bank to finance the firm's
working capital. The loan called for a floating rate that was basis points 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 percent and a minimum of percent. Calculate the rate of
interest for weeks through
Date
LIBOR. week oneweek two, week three, week four week five, week six, week seven,
Related to Checkpoint Bond valuation Calculate the value of a bond that matures in years and has a $ par value. The annual coupon interest rate
is percent and the market's required yield to maturity on a comparablerisk bond is percent.
The value of the bond is $
Round to the nearest cent.
Related to Checkpoint Bond valuation A bond that matures in years has a $ par value. The annual coupon interest rate is percent and
the market's required yield to maturity on a comparablerisk bond is percent. What would be the value of this bond if it paid interest annually? What would be the
value of this bond if it paid interest semiannually?
a The value of this bond if it paid interest annually would be $
Round to the nearest cent.
Related to Checkpoint Bond valuation Pybus, Inc. is considering issuing bonds that will mature in years with an annual coupon rate of percent. Their
par value will be $ and the interest will be paid semiannually. Pybus is hoping to get a rating on its bonds and, if it does, the yield to maturity on similar
bonds is percent. However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A rating, the yield to maturity on similar A bonds is
percent. What will be the price of these bonds if they receive either an or a rating?
a The price of the Pybus bonds if they receive a AA rating will be $
Round to the nearest cent.
Related to Checkpoint Yield to maturity The market price is $ for a year bond $ par value that pays percent annual interest, but makes
interest payments on a semiannual basis percent semiannually What is the bond's yield to maturity?
The bond's yield to maturity is
Round to two decimal places.
These are seprate questions I need help with please, thank you!
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