accounting

Midland Oil has $1,000 par value bonds outstanding at 8 percent interest. The bonds will mature in 25 years. Compute the current price of the bonds if the present yield to maturity is:

A. 7 percent.
B. 10 percent.
C. 13 percent.

  1. 👍 0
  2. 👎 0
  3. 👁 67
asked by Cindy

Respond to this Question

First Name

Your Response

Similar Questions

  1. math

    Midland Oil has $1,000 par value bonds outstanding at 8 percent interest. The bonds will mature in 25 years. Compute the current price of the bonds if the present yield to maturity is: A. 7 percent. B. 10 percent. C. 13 percent.

    asked by Robert on January 11, 2010

  2. financial management

    1. Dooley, Inc., has outstanding $100 million (par value) bonds that pay an annual coupon rate of interest of 10.5 percent. Par value of each bond is $1,000. The bonds are scheduled to mature in 20 years. Because of Dooley’s

    asked by Anonymous on September 18, 2017

  3. accounting

    Bond Conversion The tramot corporation has $2,000,000 of 6 percent bonds outstanding. There is $40,000 of unamoritized discount remaining on the bonds after the March 1, 2008 semiannual interest payment. The bonds are convertible

    asked by Fantasy on March 1, 2009

  4. Finance

    Debt: 223,000 7.0 percent coupon bonds outstanding, 25 years to maturity, selling for 107 percent of par; the bonds have a $1,000 par value each and make semiannual payments. I need help finding the YTM...

    asked by Serenity1 on November 30, 2013

  5. Finance

    moussawi ltd's outstanding bonds have a $1000 par value, and they mature in 5 years. their yield to maturity is 9%, based on semiannual compounding, and the current market price is $853.61. what is the bonds annual coupon interest

    asked by Anonymous on October 3, 2010

  6. Finance

    Johnson Motors’ bonds have 0 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon rate is 8 percent. The bonds have a yield to maturity of 9 percent. What is the current

    asked by Ashley on August 30, 2011

  7. Accounting

    Alliant Corporation sold $100,000,000 face value 8% bonds. The bonds mature in 20 years and pay interest semiannually. The going market rate of interest on bonds of similar risk is 6%. How much will Aliant receive upon the sale of

    asked by Jessica on May 1, 2013

  8. accounting

    On January 2, 2007, a company issued $100,000 of 5%, 10 year bonds. The bonds will mature in ten years. The bonds were sold for for 95% (or .95 of par) and will pay interest semi-annually, or twice a year, on June 30 and Dec 31.

    asked by Renee on October 8, 2011

  9. finance

    Monrrow 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 7.7% on these bonds. What is the bond's price?

    asked by granann on November 4, 2013

  10. Finance

    CC company's bonds mature in 10 years and have a par value of $1000 and an annual coupon payment of $80. Market Interest rate for the bonds is 9%. What is the price of these bonds?

    asked by Rod on December 12, 2010

More Similar Questions