The LBJ Corporation issues a bond which has a coupon rate of 9.20%, a yield to maturity of 10.55%, a face value of $1,000, and a market price of $850. Therefore, the annual interest payment is: O $101.75. O$102. O $96.50. O$92
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- Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 5.00%, based on semiannual compounding. What is the bond's price? O a. $1,235.47 O b. $1,457.85 O c. S1,050.15 d. $976.02 e. $1,359.01Schallheim Corporation’s outstanding bonds have a $1,000 par value, a 14 percent semiannual coupon, 6 years to maturity, and an 11 percent yield to maturity (YTM). What is the bond’s price? a. $1,129.28 b. $1,126.92 c. $1,074.93 d. $740.31 e. $1,000.00A firm issues a $10 million bond with a 7% coupon rate, 4 year maturity, and annual interest payments when market interest rates are 6%. The total interest expense reported by the issuer over the life of the bond will be: O $2,453,4891 $2,800,000 O $2,400,000
- A. Morin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 6.7% on these bonds. What is the bond's price? a. $1,215.14 b. $1,155.86 c. $1,047.19 d. $770.58 e. $987.92 B. Which of the following statements is CORRECT? a. IPO prices are generally established by the market, and buyers of the new stock must pay the price that prevails at the close of trading on the day the stock is offered to the public. b. It is possible that the price set in an IPO is so low that investors will want to buy more shares than the company wants to sell. In that case, the company will have to issue more shares than it wants to sell. c. The term "IPO" stands for Introductory Price Offered, and it is the price at which shares of a new company are offered to the public. d. In a "Dutch auction," investors who want to buy shares in an IPO submit bids…Given below is information about three RM $5000 par value bonds, each of which pays coupon semiannually. The required rate of return on each bond is 12%. Calculate the value of the bonds and determine whether the bond is selling at discount, premium or par value..... Bonde 14 2 34 Coupon Rate (%)< 10€ 124 14€ Maturity (years) 5€ 10€ 15€ Using the above table, if the company decided to pay coupon annually (12%), calculate the value of the bonds and determine whether the bond is selling at discount, premium or par value. ..... Explain the of Bons available in the market for the Companies to raise fund....... Is there any difference in the value of semiannually and annually....A. Given below is information about three RM $5000 par value bonds, each of which pays coupon semiannually. The required rate of return on each bond is 12%. Calculate the value of the bonds and determine whether the bond is selling at discount, premium or par value...... Bonde Coupon Rate (%)* Maturity (years) 14 10€ 5€ 24 124 10€ 34 144 15€ B. Using the above table, if the company decided to pay coupon annually (12%), calculate the value of the bonds and determine whether the bond is selling at discount, premium or par value........ ↑. t. t. t. C. Explain the of Bons available in the market for the Companies to raise fund...... Is there any difference in the value of semiannually and annually......
- Morin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 6.1% on these bonds. What is the bond's price? O a. $1,024.74 O b. $1,116.97 O c. $1,147.71 O d. $1,096.47 O e. $1,280.93Briar Corp is issuing a 10-year bond with a face value of $1.000 at a coupon rate of 6 percent. The interest rate for similar bonds is currently 12 percent. Assuming annual payments, what is the present value of the bond? O $1.000 $872 O $897 O $661Home Depot has debt outstanding with a face value of $30 billion. The coupon rate on these bonds is 6.2%. The current yield-to-maturity (YTM) on these bonds is 7.8%. Home Depot's tax rate is 26%. What is the effective cost of debt of Home Depot? OA. 9.83% OB. 6.20% OC. 4.59% OD. 5.77% OE. 7.80%
- Cost of debt. Kenny Enterprises has just issued a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 10.7% with semiannual payments. What is the cost of debt for Kenny Enterprises if the bond sells at the following prices? What do you notice about the price and the cost of debt? a. $967.34 b. $1,000.00 c. $1,045.83 d. $1, 189.10% (Round to two decimal places.)What is the coupon rate of a ten-year, $10,000 bond with semiannual coupons and a price of $9,558.57, if it has a yield to maturity of 6.6%? OA. 7.188% OB. 5.99% OC. 4.792% OD. 8.386%Brooks Books’ bonds have 13 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 8 percent; and the yield to maturity is 7.5 percent. What is the bond’s current market price? a. $1,000.00 b. $980.72 c. $1,040.63 d. $650.07 e. $1,080.00