# Finance

Heinz Corporation bonds carry a coupon of 8% and will mature in 5 years at \$1,000. Newly issued 5-year bonds with similar characteristics are yielding 4%. Calculate today's market price of the Heinz bond. Compute your answer, submit all your work, then answer the following questions.
What is the discount rate you used in your work? What is the annual interest in dollars paid by the Heinz bond?
What is the pv of the yearly bond interest that the Heinz bond pays? Could this yearly bond interest be computed as an annuity? Why, or why not? What is the present value of the principal of the Heinz bond?
what is the total present value of the Heinz bond- interest plus principal?

## Similar Questions

1. ### Finance

Heinz Corporation bonds carry a coupon of 8% and will mature in 5 years at \$1,000. Newly issued 5-year bonds with similar characteristics are yielding 4%. Calculate today's market price of the Heinz bond. Compute your answer,
2. ### Finance

Hi Tech Products has 35,000 bonds outstanding that are currently quoted at 102.3. The bonds mature in 11 years and carry a 9 percent annual coupon. What is the firm's aftertax cost of debt if the applicable tax rate is 35 percent?

The Garcia Company’s bonds have a face value of \$1,000, will mature in 10 years, and carry a coupon rate of 16 percent. Assume interest payments are made semiannually.
4. ### 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
5. ### finance

he bonds issued by Stainless Tubs bear a 6 percent coupon, payable semiannually. The bonds mature in 11 years and have a \$1,000 face value. Currently, the bonds sell for \$989. What is the yield to maturity?
6. ### finance

he bonds issued by Stainless Tubs bear a 6 percent coupon, payable semiannually. The bonds mature in 11 years and have a \$1,000 face value. Currently, the bonds sell for \$989. What is the yield to maturity?
7. ### finance

swh corporation issued bonds on january 1, 2004. The bonds had a coupon rate of 4.5%, with interest paid semiannually. The face of the bonds is \$1000 and the bonds mature on January 1, 2014. What is the instrinsic value (to the
8. ### finance

The bonds of company A, carry a 10% annual coupon, have a 100,000 face value, and mature in 4years. Bonds of equivalent risk yield 7%. What is the market price of Company A.
9. ### Finance

Zabberer Corporation bonds pay a coupon rate of interest of 12 percent annually and have a maturity value of \$1000. The bonds are scheduled to mature at the end of 14 years. The company has the option to call the bonds in 8 years
10. ### Finance

As an investor, you are considering an investment in the bonds of the Conifer Coal Company. The bonds, which pay interest semiannually, will mature in 8 years, have a coupon rate of 9.5% on a face value of \$1,000. Currently, the

More Similar Questions