# A 10-year bond with a 5% coupon and a 1million VND par value is currently priced at 821,000VND. a. If the current market interest rate is 8%. Should you buy the bond? Why or why not? b. Assuming you buy

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1. ## Finance

A company issues a 10,000 par value 10-year bond with 8% annual coupon payments. If the yield rate is 6%, calculate the price of this bond.

2. ## finance

the corner grocer has a 7-year, 6 percent annual coupon bond outstanding with a \$1,000 par value. the bond has a yield to maturity of 5.5 percent. Which one of the following statements is correct if the market yield suddenly increases to 6.5 percent? The

3. ## Finance

A 20-year, \$1,000 par value bond has a 9% annual coupon. The bond currently sells for \$925. If the yield to maturity remains at its current rate, what will the price be 5 years from now

4. ## Finance

Bond Pricing: A 6-year Circular File bond pays interest of \$80 annually and sells for \$950. What is its coupon rate, current yield, and yield to maturity? Bond Pricing : If the Circular File wants to issue a new 6-yar bond at face value, what coupon rate

5. ## Finance

Which of the following statements about the relationship between yield to maturity and bond prices is FALSE? A. When the yield to maturity and coupon rate are the same, the bond is called a par value bond. B. A bond selling at a premium means that the

6. ## finance

1. Yest Corporation's bonds have a 15-year maturity, a 7% semiannual coupon, and a par value of \$1,000. The market interest rate (r) is 6%, based on semiannual compounding. What is the bond’s price? 2. A 20-year, \$1,000 par value bond has a 9% annual

7. ## Finance

A 12-year bond has an annual coupon rate of 9%. The coupon rate will remain fixed until the bond matures. The bond has a yield to maturity of 7%. Which of the following statements is CORRECT? (Points: 4) The bond is currently selling at a price below its

8. ## Finance

Bond value and time--Constant required returns Pecos Manufacturing has just issued a 15-year, 12% coupon interest rate, \$1,000-par bond that pays interest annually. The required return is currently 14%, and the company is certain it will remain at 14%

9. ## Finance

.An investor in the 28 percent tax bracket is trying to decide which of two bonds to select: one is a 5.5 percent U. S. Treasury bond selling at par; the other is a municipal bond with a 4.25 percent coupon, which is also selling at par. Which of these two

10. ## Finance

Bond X is a premium bond making annual payments. The bond pays an 8 percent coupon, has a YTM of 6 percent, and has 13 years to maturity. Bond Y is a discount bond making annual payments. This bond pays a 6 percent coupon, has a YTM of 8 percent, and also

11. ## Finance

Suppose you buy a 7% coupon, 20 year bond today when it's first issued. If interest rates suddenly rise to 15%, what happens to the value of your bond?

12. ## Finance

Which of the following statements is CORRECT? a. Two bonds have the same maturity and the same coupon rate. However, one is callable and the other is not. The difference in prices between the bonds will be greater if the current market interest rate is

13. ## Finance

A three-year bond has 8.0% coupon rate and face value of \$1000. If the yield to maturity on the bond is 10%, calculate the price of the bond assuming that the bond makes semi-annual coupon interest payments.

14. ## finance

A 7.10 percent coupon bond with 14 years left to maturity is priced to offer a 7.8 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.4 percent. What is the change in price the bond will experience in dollars? (Do not

15. ## fin

Which of the following statements is CORRECT? (Points : 10) If a bond is selling at a discount, the yield to call is a better measure of return than the yield to maturity. On an expected yield basis, the expected capital gains yield will always be positive

16. ## Finance

An investor in the 28 percent tax bracket is trying to decide which of two bonds to select: one is a 5.5 percent U. S. Treasury bond selling at par; the other is a municipal bond with a 4.25 percent coupon, which is also selling at par. Which of these two

17. ## Finance

Which of the following statments is CORRECT? a. Assume that two bonds have equal maturities and are of equal risk, but one bond sells at par while the other sells at a premium above par. The premium bond must have a lower current yeild and a higher capital

18. ## college

A 14-year zero-coupon bond was issued with a \$1000 par value to yield 12%. What is the approximate market value of the bond?

Moore Company is about to issue a bond with semiannual coupon payments, a coupon rate of 8%, and par value of \$1,000. The yield-to-maturity for this bond is 10%.

20. ## Finance

How can one invest today at the 2-year forward rate of interest? I) By buying a 2-year bond and selling a 1-year bond with the same coupon II) By buying a 1-year bond and selling a 2-year bond with the same coupon III) By buying a 1-year bond and then

21. ## finance

The Corner Grocer has a 7-year, 6 percent annual coupon bond outstanding with a \$1,000 par value. The bond has a yield to maturity of 5.5 percent. Which one of the following statements is correct if the market yield suddenly increases to 6.5 percent? The

22. ## Bonds

How much would you pay for the bond (\$1,000 par, 6% coupon rate) if your required rate is 4%? Is this bond selling for a premium or discount?

23. ## Finance

An investor in the 28% tax bracket is trying to decide which of two bonds to select: one is a 5.5% U.S. Treasury bond selling at par; the other is a municipal bond with a 4.25% coupon, which is also selling at par. Which of these two bonds should the

a bond that has \$1,000 par value (face value) and a contract or coupon interest rate of 11.5%. The bonds have a current market value of \$1,126 and will mature in 10 years. the firms marginal tax rate is 34%. what is the cost from this bond debt is __%

25. ## FINANCE

10. Bond prices and interest rate An 8 percent coupon bond with 15 years to maturity is priced to offer a 9 percent yield to maturity. You believe that in one year, the yield to maturity will be 6.5 percent. What is the change in price the bond will

26. ## finance

(Bond valuation) Eagle Ventures has a bond issue outstanding with an annual coupon rate of 7 percent and 4 years remaining until maturity. The par value of the bond is \$1,000. (a) Determine the current value of the bond if present market conditions justify

27. ## Fianance

A tax-exempt bond was recently issued at an annual 8 percent coupon rate and matures 20 years from today. The par value of the bond is \$1,000.

28. ## FINANCE

Bond valuation Nungesser Corporation’s outstanding bonds have a \$1,000 par value, a 9 percent semiannual coupon, 8 years to maturity, and an 8.5 percent YTM. What is the bond’s price?

29. ## Math

A 10-year bond with a 5% coupon and a 1million VND par value is currently priced at 821,000VND. a. If the current market interest rate is 8%. Should you buy the bond? Why or why not? b. Assuming you buy and hold this bond for 6 years. What price must you

30. ## Finance

Assume that you have a bond with a 22-year life, a five percent coupon rate, semi-annual coupon payments and the bond is priced at 103. a) What is the YTM b) if the bond is callable after 3 yrs, What is the YTC? c) What is the current yield?

31. ## Finance

Cosmic Communication Inc. is planning two new issues of 25-year bonds. Bond par will be sold at its \$1,000 par value, and it will have a 10% semiannual coupon. Bond OID will be an Original issue Discount bond, and it will also have a 25-year maturity and a

32. ## Finance

The Carter Company's bond mature in 10 years have a par value of 1,000 and an annual coupon payment of \$80. The market interest rate for the bond is 9%. What is the price of these bonds The coupon rate on the bond, (interest/principal at maturity) = 8%

33. ## finance

You buy an 8% annual coupon bond from CARRIS Inc. that has a 25 year maturity and a required return of 12%. The par value is \$1,000. You sell the bond five years later when the required return is 10%. What is the beginning price of the bond when it is

34. ## Finance

Compute the price of a \$ 6,775 par value, 16 percent coupon consol, or perpetual bond (i.e., coupon interest payment is a perpetuity), assuming that the yield to maturity on the bond is 8 percent. Please explain

35. ## finance

the corner grocer has a 7-year, 6 percent annual coupon bond outstanding with a \$1,000 par value. the bond has a yield to maturity of 5.5 percent. Which one of the following statements is correct if the market yield suddenly increases to 6.5 percent? The

36. ## Math

TAN is considering 3 cash flow: Cash flow A: receive 90 million VND today and then receive 20 million VND every year for next five years. Cash flow B: receive 10 million VND every year, forever, starting today. Cash flow C: pay 30 million every year for

37. ## Finance

A bond has a 10% coupon rate, a par value of \$1,000 and a market price of \$800. What is the current yield of this bond?

38. ## fin 370

(individual or component costs of capital)Compute the cost of the capital for the firm for the following:? a. A bond that has a \$1,000 par value (face value) and a contract or coupon interest rate of 11.7%. The bonds have a current market value of \$1,125

39. ## Finance

A 7.10 percent coupon bond with 14 years left to maturity is priced to offer a yield to maturity of 7.9 percent. You believe that in one year, the yield to maturity will be 7.4 percent. What is the change in price the bond will experience in dollars? (Do

40. ## Finance 370

a bond that has a \$1000 par value (face value) and a contract or coupon interest rate of 10.9%. The bonds have a current value of \$1,120 and will mature in 10 years. The firm's marginal tax rate is 34%. The cost of capital from this bond debt is what

41. ## finance

AAA has only stock and bonds in its capital structure. Balance sheet information: Long term debt (par value--NOT number of bonds) = \$20,000,000, Common equity and retained earings = \$17,000,000, and Shares of stock outstanding = 1,000,000. Bond

42. ## Macro Economics

On April 20, 2008 your wealthy aunt will give you a bond with a par value (or a maturity value) of \$10,000. Your aunt purchased the bond in 2003, and it matures on April 20, 2009. The bond pays a coupon rate of 8 percent. When it arrives, the bond will

Assume venture Healthcare sold bonds that have a ten year maturity,a 12 percent coupon rate with annual payment,and a \$1000 par value.Suppose that two years after the bonds were issued ,the required interest rate fell to 7 percent .what would be the bond

You purchase a bond for \$875. It pays \$60 a year (semiannual coupon is 3%), &the bond matures after 10 years. What is the yield to maturity?

45. ## Corporate Finance

suppose you bought a 6 percent coupon bond one year ago for \$1,040. The bond sells for \$1,063 today.

46. ## Need help by tonite Finance

15. Bond ratings and prices A corporate bond with an 8.5 percent coupon has 10 years left to maturity. It has had a credit rating of A and a yield to maturity of 10 percent. The firm has recently gotten into some trouble and the rating agency is

47. ## accounting

Consider two bonds on the market: one zero-coupon bond, maturing in exactly 1 year from today and trading at 99% of its par value; another is a 2% coupon bond, maturing in exactly 2 years from today, trading at 101 of its par value. Coupons are being paid

48. ## Corporate Finance

You have been asked to estimate the value of a 10-year bond with a coupon that will be low initially but it is expected to grow later in the bond’s life. The coupon is expected to be 5% of the face value of the bond (which is \$ 1000) for the first 5

49. ## accounting

a 10 year coupon bond that yield 5% is issued with a 1000 par value. what is the issuance price of the bond

50. ## Finance

Assume that Pelon Inc. has issued a 10 year maturity bond with a yield of 8%. Its coupon rate is 5% and the coupons are paid semi annually. Its par value is the value of this bond at the issue date?

51. ## Finance

Bob bought an 8.5% annual coupon bond at par. One year later, he sold the bond at a quoted price of 98. During the year, market interest rates rose and inflation was 3%. What real rate of return did Bob earn on this investment?

52. ## Finance

Harrison Inc. has issued a zero/ coupon bond with par value of \$1000. The bond pays no coupons until the end of the 6th year, at which point it pays 10% annual coupons. What is the issue (initial) price of this bond if it has a 20 year maturity and yield

53. ## Finance

A three-year bond has 8.0% coupon rate and face value of \$1000. If the yield to maturity on the bond is 10%, calculate the price of the bond assuming that the bond makes semi-annual coupon interest payments.

54. ## Finance

2. You are now considering adding a corporate bond to your investment portfolio. The bond was issued last year to have 10 years to maturity (so it has 9 years remaining to maturity from today) The bond has an 8% coupon, and was sold at par (\$1,000) when it

55. ## finance

10 year bond of par value Rs.8,000 was issued, with annual coupon rate of 11.5% and required rate of return is 9% per annum. what is the value of bond?

56. ## math

Amy purchased a five-year \$5,250 bond below par value for \$4,675 with a coupon of 3.5%. What was her yield?

57. ## Finance

1. A bond pays semiannual coupon payments of \$30 each. It matures in 20 years and is selling for \$1,200. What is the firm’s cost of debt if the bond’s par value is \$1,000? (Don’t forget this is a semiannual coupon.) (Points : 1) 2.23% 4.48% 1.80%

58. ## finance

1. A bond pays semiannual coupon payments of \$30 each. It matures in 20 years and is selling for \$1,200. What is the firm’s cost of debt if the bond’s par value is \$1,000? (Don’t forget this is a semiannual coupon.) (Points : 1) 2.23% 4.48% 1.80%

59. ## Finance

You are considering the purchase of an outstanding Nickel Corp bond that was issued at par on Oct. 2, 2007 with a 10-year maturity. It is now Oct 2, 2013. The bond has an 8% coupon rate and has semi-annual coupons. The price is now \$1,068.23. a) If you

60. ## finanace

Compute the cost of the capital for the firm for the following:? a. A bond that has a \$1,000 par value (face value) and a contract or coupon interest rate of 11.6%. The bonds have a current market value of \$1,124 and will mature in 10 years. The firms

61. ## bond

Assume an investor with 5 years investment horizon is considering purchasing a 7 years 6% coupon selling at par. The investor expects to reinvest the coupon at 5% and that the bond will be selling to offer a yield to maturity of 4% in five years. What is

62. ## financial analysis

A zero coupon bond with a par value of 1,000 has 15 years to maturity. If the YTM is 6.2% what is the current price of this bond?

63. ## finance

You own a bond that has an 8 percent coupon and matures 8 years from now. You purchased this bond at par value when it was originally issued. If the current market rate for this type and quality of bond is 8.25 percent, then you would expect

64. ## Finance

An investor purchases a 10-year U.S. government bond for \$800. The bond's coupon rate is 10 percent and,? at time of purchase, it still had five years remaining until maturity. If the investor holds the bond until it matures and collects the \$1,000 par

65. ## fin 370 # 2

(individual or component costs of capital) Your firm is considering a new investment proposal and would like to calculate its weighted average cost of capital. To help in this, compute the cost of capital for the firm for the following: a. A bond that has

66. ## fin 370 # 2

(individual or component costs of capital) Your firm is considering a new investment proposal and would like to calculate its weighted average cost of capital. To help in this, compute the cost of capital for the firm for the following: a. A bond that has

67. ## Finance

1.You buy a SML Bond for \$980. The bond has a face value of \$1000 and an annual coupon rate of 8%. There are 5 years left until maturity. Because of a special delivery by the stork, you decide to sell the bond at the end of year 2 for \$1050. What was your

68. ## Finance

Some institutional investors prefer zero coupon bonds over coupon bonds of the same maturity (and same quality). They will ever purchase a lower YTM zero coupon than the same maturity coupon bond. Which statement below best describes why they do this?

69. ## accounting

An amortizing bond is a bond which pays the principal not at its maturity, but prior to its maturity, according to some schedule, typically (but not necessarily) in equal amounts. In particular, consider a floating-rate amortizing bond, which pays 25% of

70. ## Finance

Benson Incorporated has bonds with the following features: Par value of 1,000, maturity of 12 years, and a coupon rate of 8%.The yield to maturity is 10%. Pleases determine if the bond sells for for a premium, par, or discount and explain your answer.

71. ## Finance

Dahler Corporation has just issued a bond with a maturity of 20 years, coupon rate of 10.25%, and a market price of \$1330.25. Dahler makes semiannual coupon payments. a) what is the YTM expressed as a quoted rate based on semi-annual compounding? And what

72. ## Finance

8. Ms. Scott purchased a 7-year, 4% annual coupon bond with the YTM of 4%. Ms. Lee invested in a 10-year, 6% annual coupon bond with the YTM of 4%. If interest rates go up by 2 percentage points due to inflation (that is, the YTM becomes 6%), who will have

73. ## Finance

Which of the following would be most likely to increase the coupon rate that is required to enable a bond to be issued at par? (Points: 4) Adding a call provision. Adding additional restrictive covenants that limit management's actions. Adding a sinking

74. ## Fiance

ABC stock sells for \$22 bucks a share. The company wants to sell 20 year annual interest \$1000 par value bonds. Each bond will have 75 warrants attached to it which is exercisable into one share of stock. The exercise price is \$47.00. The stock sells for

75. ## Finance

First Inc. is facing a liquidity problem and needs to issue a perpetual bond that is callable only at the end of year 2. The call price is \$1,000 (face value) plus an additional coupon payment. The current interest rate is 8% per year. At the end of each

76. ## MCC

An investor in the 28% tax bracket is trying to decide which of two bonds to select: one is a 6.5% U.S. Treasury Bond selling at par; the other is a municipal bond with a 5.25% coupon, which is selling at par. Which of these two bonds should the investor

Please can you help me to solve and get the solution for these problems. how to get the solution please help me question: 1.Find the price of a 10% coupon bond with 10 years to maturity if interest rates: A) increase by 1% B) decrease by 1% C) increase by

78. ## MS.SUE PLS HELP ME

Please can you help me to solve and get the solution for these problems. how to get the solution please help me for my homework. question: 1.Find the price of a 10% coupon bond with 10 years to maturity if interest rates: A) increase by 1% B) decrease by

Please can you help me to solve and get the solution for these problems. how to get the solution please help me for my homework. question: 1.Find the price of a 10% coupon bond with 10 years to maturity if interest rates: A) increase by 1% B) decrease by

80. ## Finance

Which of the following statements is CORRECT? a. Two bonds have the same maturity and the same coupon rate. However, one is callable and the other is not. The difference in prices between the bonds will be greater if the current market interest rate is

81. ## Finance

A four-year TIPS bond promises a real annual coupon return of 4 percent and its face value is \$1,000. While the annual inflation rate was approximately zero when the bond was first issued, the inflation rate suddenly accelerated to 3 percent and is

82. ## fin/370

a bond that has a 1000 par value (face value and a contract or coupon interest rate of 10.9%. the bond have a current market value of \$1,120 and will mature in 10 years. the firm's marginal tax rate is 34%. the cost of captial from this debit is

83. ## UTECH

Your company has raised financing by issuing 25-year bonds on January 1, 2009. They mature on December 31, 2033 and have a par value of \$1,000 and a coupon rate of 8%. Coupon payments are made semi-annually.

A bond that has a \$1,000 par value (face value) and a contract or coupon interest rate of 10.5%. The bonds have a current market value of \$1123 and will mature in 10 years. The firm's marginal tax rate is 34%. The cost of capital from this bond debt is

A bond has a \$1,000 par value (face value) and a contract or coupon interest rate of 10.1%. The bonds have a current market value of \$1,126and will mature in 10 years. The firms marginal tax rate is 34%. The cost of capital from this bond debt is ____%

86. ## Finance

Suppose Preun Inc. issues \$200 million in 60 day maturity commercial paper at a price of 99.35 par. (commercial paper is like a zero coupon bond. You buy it at a price of less than its par value and it pays the investor par value at the maturity date.) It

87. ## FIN 370

1. (defining capital structure weights) templeton extended care facilities, inc. is considering the acquisition of a chain of cemeteries for \$340 million. Since the primary asset of this business is real estate, templeton’s management has determined that

88. ## Finance

A 6% six-year bond yields 10.5% and a 10% six-year bond yields 8.5%. Calculate the six-year spot rate. Assume annual coupon payments.

89. ## finance

A 10-year bond with an annual coupon rate of 8%. The bond has face value of \$1,000 and makes semiannual interest payments. If you require a 12% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the

90. ## UOP

a bond that has a \$1000 par value (face value) and a contract or coupon interest rate of 10.9%. The bonds have a current value of \$1,120 and will mature in 10 years. The firm's marginal tax rate is 34%. The cost of capital from this bond debt is what

91. ## Finance

What is the value of 15-year corporate bonds, with a coupon rate of 9%, if current interest rates on similar bonds is 8%? How much would the value change if interest rates increased to 10%? Under what conditions will this bond trade at par (face value)?

92. ## finance

A bond that has a \$1000 par value (face value) and a contract or coupon interest rate of 11.1%. The bonds have a current market value of \$1125 and will mature in 10 years. The firms marginal tax rate is 34%. The cost of capital from this bond debt is what

93. ## math/finance

Assume that you are considering the purchase of a 30-year, noncallable bond with an annual coupon rate of 8.5%. The bond has a face value of \$1,000, and it makes semiannual interest payments. If you require an 7.4% yield to maturity on this investment,

94. ## MathematicalModels

A default-free coupon bond maturing in 6 months, that pays a coupon of 2.00 after 3 months and makes a final payment of 102.00 (the last coupon and the principal), trades at 101.00 today. Moreover, a 3-month default-free zero-coupon bond is traded at 99,

95. ## finance

Jiminy's Cricket Farm issued a 30-year, 7.2 percent semiannual bond 9 years ago. The bond currently sells for 85.5 percent of its face value. The book value of this debt issue is \$107 million. In addition, the company has a second debt issue, a zero coupon

96. ## math

A default-free coupon bond maturing in 6 months, that pays a coupon of 2.00 after 3 months and makes a final payment of 102.00 (the last coupon and the principal), trades at 101.00 today. Moreover, a 6-month default-free zero-coupon bond is traded at 97.1,

97. ## Mathematical Models

A default-free coupon bond maturing in 6 months, that pays a coupon of 2.00 after 3 months and makes a final payment of 102.00 (the last coupon and the principal), trades at 101.00 today. Moreover, a 6-month default-free zero-coupon bond is traded at 97.1,

98. ## Finance

You buy a very risky bond that promises a 9.5% coupon and return of the \$1,000 principal in 10 years. You pay only \$500 for the bond. You receive the coupon payments for 3 years and then the bond defaults. After liquidating the firm, the bondholders

99. ## Finance

Judy Johnson is choosing between investing in two Treasury securities that mature in five years and have par values of \$1,000. One is a Treasury note paying an annual coupon of 5.06 percent. The other is a TIPS which pays 3 percent interest annually. a. If