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What is the value of Bond A? What is the value of Bond B? What is the value of Bond C? Bond valuation-Semiannual interest Calculate

image text in transcribedWhat is the value of Bond A? What is the value of Bond B? What is the value of Bond C?

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Bond valuation-Semiannual interest Calculate the value of each of the bonds shown in the following table, all of which pay interest semiannually. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Required stated Coupon Par Value interest rate maturity Years to annual Bond return $1,000 10% A 8% 11 B 1,000 13 15 11 C 100 15 4 12 Preferred stock valuation TXS Manufacturing has an outstanding preferred stock issue with a par value of $65 per share. The preferred shares pay dividends annually at a rate of 11% a. What is the annual dividend on TXS preferred stock? b. If investors require a return of 6% on this stock and the next dividend is payable one year from now, what is the price of TXS preferred stock? c. Suppose that TXS has not paid dividends on its preferred shares in the past two years, but investors believe that it will start paying dividends again in one year. What is the value of TXS preferred stock if it is cumulative and if investors require a(n) 6% rate of return? Yield to maturity The Salem Company bond currently sells for $1,145.16, has a coupon interest rate of 9% and a $1000 par value, pays interest annually, and has 18 years to maturity. a. Calculate the yield to maturity (YTM) on this bond. b. Explain the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value of a bond. Bond valuation-Annual interest Calculate the value of the bond shown in the following table, assuming it pays interest annually. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Required return Par value Coupon Years to interest rate maturity $100 12% 12 18% The value of the bond is $ (Round to the nearest cent.)

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