BankMart Inc. recently issued bonds that mature in 11 years. They have a par value of $1,000 and an annual coupon of 6%. The current market interest rate is 8%. What is the bond's value?
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BankMart Inc. recently issued bonds that mature in 11 years. They have a par value of $1,000 and an annual coupon of 6%. The current market interest rate is 8%.
What is the bond's value?
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- Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?Neubert Enterprises recently issued $1,000 par value 15-year bonds with a 5% coupon paid annually and warrants attached. These bonds are currently trading for $1,000. Neubert also has outstanding $1,000 par value 15-year straight debt with a 7% coupon paid annually, also trading for $1,000. What is the implied value of the warrants attached to each bond?Rick Barr Properties has two bonds outstanding. Bond A was issued 15 years ago with a coupon rate of 8%. The other, Bond B, was issued 12 years ago with a coupon rate of 8%. Both bonds were originally issued as 30-year bonds with coupon payments made semi-annually. The current market rate (YTM) is 11%? What is the current price of Bond A? What is the current price of Bond B?
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- Nikita Enterprises has bonds on the market making annual payments, with 16 years to maturity, a par value of $1, 000, and selling for $962. At this price, the bonds yield 8.5 percent. What must the coupon rate be on the bonds?A corporate bond has 18 years to maturity, a face value of $1,000, a coupon rate of 5.3% and pays interest semiannually. The annual market interest rate for similar bonds is 3.1%. What is the value of the bond?Carrie’s Clothes, Inc. has a five-year bond outstanding that pays $60 annually. The face value of each bond is $1,000, and the bond sells for $890. a. What is the bond’s coupon rate?b. What is the current yield?c. What is the yield to maturity?
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