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You are the CFO of Wolverine World Wide NYSE: WWW. On June 30th 2017, you issued a bond which sold at offering for par. The
You are the CFO of Wolverine World Wide NYSE: WWW. On June 30th 2017, you issued a bond which sold at offering for par. The total amount raised in the offering was $150,000,000. The bond has a semi-annual coupon and a coupon rate of 6.0%, and the bond matures December 30th 2026. The bond is currently trading at a price of $98.75 for $100.00 face value. 1. How many coupon payments are left until maturity? Today is November 1st 2019. (2pts) 2. How much does a bondholder who owns $10,000 face value of the bond receive with each coupon payment? (2pts) 3. For investors who buy the bond today, what is their yield to maturity? (3pts) 4. The bond has a call feature; on June 30th 2021 the bond can be called at a premium of $103.50. How many coupon payments are left until the call date? (1pt) 5. For investors who buy the bond today, what is their yield to call? (3pts) 6. For investors who buy the bond today, what is their yield to worst? (1pt)
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