Ford Motor Co. has BB rated bonds outstanding that mature in 18 years, and have a 8.000% coupon rate. Coupon payments are made semi-annually. If the appropriate required rate of return for this bond is 8.75, what is the value of the bond?
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Ford Motor Co. has BB rated bonds outstanding that mature in 18 years, and have a 8.000% coupon rate. Coupon payments are made semi-annually.
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- Ford Motor Co. has BB rated bonds outstanding that mature in 27 years, and have a 7.735% coupon rate. Coupon payments are made semi-annually. If the appropriate required rate of return for this bond is 9.25, what is the value of the bond. Express your answer to the nearest cent.Enterprise, Inc. bonds have a 9 percent annual coupon rate. The interest is paid semiannually and the bond mature in eight years. Their par value is $1,000. If the market’s required yield to maturity on a comparable-risk bond is 8 percent, what is the value of the bond? What is its value if the interest is paid annually? How to calculate this using mathematical calculation with formulas in finance?Carries 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. Use semi- annual interest payments if it applies. What is the bond’s coupon rate? What is the current yield? What is the yield to maturity?
- A 10-year government bond has face value of OR 200 and a coupon rate of 6% paid semiannually. Assume that the interest rate is equal to 8% per year. What is the bond’s price? What is the reason for the difference in price on an annual and semiannually basis? Discuss the role of financial managers.A 10-year bond with a face value of $1,000 has a coupon rate of 9.0%, with semiannual payments. a. What is the coupon payment for this bond? b. Enter the cash flows for the bond on a timeline. a. What is the coupon payment for this bond? The coupon payment for this bond is $ every six months. (Round to the nearest cent.)You are considering the purchase of CJ, Inc. bonds that mature in 13 years, and have a 4.75% coupon rate. Coupon payments are made semi-annually, and the bond has a face value of $1,000. If the appropriate required rate rate of return for this bond is 4.45%, what is the value of the bond?
- A bond has 10 years until maturity, a coupon rate of 8.9%, and sells for $1,110. Interest is paid annually. (Assume a face value of $1,000.) What will be the rate of return on the bond?As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 18 years, the coupon rate is 6% paid annually, and the market yield (discount rate) is 13%. What should be the estimated value of this bond in one year?Ba Corp is issuing a 10 year bond with a coupon rate 8%. The interest rate for similar bonds is currently 6%. Assuming annual payments, what is the value of the bond?
- A bond that matures in 16 years has a $1,000 par value. The annual coupon interest rate is 12 percent and the market's required yield to maturity on a comparable-risk bond is 18 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?Suppose a firm is issuing bonds. Each bond has a face amount of $1,000, a stated rate of 8%, and a 10-year term. Coupon (interest) payments are made annually. When the bonds are issued, the market rate for similar bonds is 8%. After a year, the bond is selling for $1,015. What is the yield to maturity?A bond has a face value of $1,000. If this bond will mature in 5 years, pays interest semiannually, and has a coupon rate of 6%, what is the yield to maturity on this bond if it is currently selling for $720? (Show your work to receive full credit)