Curtis Equipment Inc., $1,000 par value, 15% annual coupon bonds, have 6 years remaining to maturity and are currently selling for $938.45. What is the firm's yield to maturity for these bonds? A) 15.70% B) 16.70% C) 17.30% D) 17.70%
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- Neubert Enterprises recently issued $1,000 par value 15-year bonds with a 5% coupon paid annually and warrants attached. These bonds are currently trading for $1,000. Neubert also has outstanding $1,000 par value 15-year straight debt with a 7% coupon paid annually, also trading for $1,000. What is the implied value of the warrants attached to each bond?Waylan Sisters Inc. issued 3-year bonds with a par value of $100,000 and a 6% annual coupon when the market rate of interest was 5%. If the bonds sold at 102.438, how much cash did Williams Sisters Inc. receive from issuing the bonds?Gingko Inc. issued bonds with a face value of $100,000, a rate of 7%, and a 10-yearterm for $103,000. From this information, we know that the market rate of interest was ________. A. more than 7% B. less than 7% C. equal to 7% D. equal to 1.3%
- Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 10% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000, and a yield to maturity of 8.5%. What is the price of the bonds?SMN Inc.'s bonds currently sell for $1,123. They have a 11-year maturity, an annual coupon of 7.05%, and a par value of $1,000. What is their capital gains yield? -0.7499% O 0.7499% O 5.5416% O6.2778% O5.5279%
- Assume that Bunch Inc. has an issue of 18 -year $1,000 par value bonds that pay 7% interest, annually. Further assume that today's required rate of return on these bonds is 5%. How much would these bonds sell for today? Round off to the nearest $1. Select one:$1,201.32$1,233.79$1,032.56$1,134.881. Copper Corp. has an outstanding bond issue that is currently selling for $1,073.95. The yield to maturity is 10.7%, and the bonds mature in 9 years. Assuming that the face value is $1000 and the bonds pay a semi-annual coupon, what is the current yield on the bonds? a. 8.9% b. 7.8% c. 13.4% d. 11.2%One year ago, Company A issued 15-year, noncallable, 6.9% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity? a. $1,134.26 Ob. $1,146.47 Oc. $1,140.53 d. $1,170.65 e. $1,178.62
- A $1,000 per value bond with a 5.8% coupon and semi-annual interest payments has 25 years to maturity. If the bonds are currently trading for $1,122.75, what is the cost of debt for the firm? 4.94% 5.12% 4.93% 4.50% 6.02%Sentry Corp. bonds have in annual coupon payment of 7.25%. The bonds have a par value of $1,000, a current price of $1,125, and they will mature in 13 years. What is the yield to maturity on these bonds? a. 5.56% b. 6.45% c. 5.85% d. 6.14% e. 6.77%You are analyzing the cost of debt for a firmYou know that the firm's 14-year maturity7.8 percent coupon bonds are selling at a price of $1,052.38The bonds pay interest semiannually. If these bonds are the only debt outstanding for the firm, answer the following questions Only typed answer