Suppose Lion Cage Multinational floated 5000 bonds on January 1, 2020 with a par value of 1500 at stated rate of 16%. Currently, the market is selling these bonds at 18%. The bonds are expected to paid back by December 2030 with an interest paid quarterly effective March 1, 2020. What would be the bond price?
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- 2. Determine the purchase price and the amount of premium/discount of the given bonds. Face Value Coupon Rate Yield Rate Redemption Date Purchase Date Purchase Price ? a. $1000.00 5.25% 5.25% January 01, 2024 January 01, 2019 b. $5000.00 4.75% 6.75% October 20, 2028 October 20, 2018 ? c. $10,000.00 7.85% 4.15% August 16, 2034 August 16, 2014 ? Amount of Premium/Discount ? ? ?Suppose Lion Cage Multinational floated 5000 bonds on January 1, 2020 with a par value of 1500 at stated rate of 16%. Currently, the market is selling these bonds at 18%. The bonds are expected to paid back by December 2030 with an interest paid quarterly effective March 1, 2020. What would be the bond price? Group of answer choices No choice given 7,485,006 6,708,900 7,584,000 6,870,050Suppose the following bond quote for IOU Corporation appears in the financial page of today's newspaper. Assume the bond has a face value of $1,000, it makes semiannual interest payments, and the current date is April 15, 2019. Company (Ticker) Coupon Maturity Apr 15, 8.0 2035 IOU (IOU) YTM Current yield Last Price 104.76 % % What is the yield to maturity of the bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What is the current yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Q Last Yield J ?? EST Vol (000s) 1,846 < Prev 18 11 of 11 Next #M24
- To calculate the number of years until maturity, assume that it is currently January 15, 2022. All of the bonds have a $2,000 par value and pay semiannual coupons. Company (Ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) Coupon 5.400 4.125 ?? a. Price b. Current yield Maturity January 15, 2034 January 15, 2029 January 15, 2031 % Last Price Last Yield 92.685 ?? 3.84 ?? 104.310 4.12 Estimated $ Volume (000s) 57,362 a. What price would you expect to pay for the Kenny Corporation bond? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the bond's current yield? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 48,941 43,802To calculate the number of years until maturity, assume that it is currently January 15, 2022. All of the bonds have a $2,000 par value and pay semiannual coupons. Estimated $ Volume Company (Ticker). Coupon Xenon, Incorporated (XIC) 5.400 Maturity January 15, 2034 Kenny Corporation (KCC) 4.125 Williams Company (WICO) ??? January 15, 2029 January 15, 2031 Last Price 92.685 ?? Last Yield (000s) PP 57,362 3.84 48,941 104.310 4.12 43,802 a. What price would you expect to pay for the Kenny Corporation bond? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the bond's current yield? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Price b. Current yield %To calculate the number of years until maturity, assume that it is currently January 15, 2022. All of the bonds have a $2,000 par value and pay semiannual coupons. Company (Ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) Coupon 5.400 4.125 ?? Yield to maturity Maturity January 15, 2034 January 15, 2029 January 15, 2031 % Last Price Last Yield 92.685 ?? ?? 3.84 104.310 4.12 What is the yield to maturity for the bond issued by Xenon, Incorporated? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Estimated $ Volume (000s) 57,362 48,941 43,802
- Consider the following newly issued bonds: Inputs Juan Rojo, Incorporated 10-Year Bond McAllister Avionics 9-Year Bond Settlement Date 01-01-2020 01-01-2020 Maturity Date 01-01-2030 01-01-2029 Coupon Rate 0.080 0.050 Redemption Value 100 100 Coupons per Year 2 1 Market Data Initial Yield 0.075 Yield Change 0.010 Required: Using any necessary data above, calculate the Price, the Macaulay Duration and the Modified Duration for each bond. Then, predict the price change given a change in the prevailing yield. Then, assume the market yield changed, as described below. In the second table, calculate the approximate price change and new price according to duration (the first-order approximation). (Use cells A5 to C13 from the given information to complete this question.) Juan Rojo, Incorporated 10-Year Bond McAllister Avionics 9-Year Bond…An investor sold a bond issued by PQR Corporation with nominal yield of 2% and maturity of June 30, 2027 on June 30, 2020. If the yield on US Treasury Bonds was 1.5210% and the spread for PQR was 200 basis points, the trading price was ? (round to two decimal points).Consider the following newly issued bonds: Inputs Juan Rojo, Incorporated 10-Year Bond McAllister Avionics 9-Year Bond Settlement Date 01-01-2020 01-01-2020 Maturity Date 01-01-2030 01-01-2029 Coupon Rate 0.080 0.050 Redemption Value 100 100 Coupons per Year 2 1 Market Data Initial Yield 0.075 Yield Change 0.010 Required: Using any necessary data above, calculate the Price, the Macaulay Duration and the Modified Duration for each bond. Then, predict the price change given a change in the prevailing yield. Then, assume the market yield changed, as described below. In the second table, calculate the approximate price change and new price according to duration (the first-order approximation). (Use cells A5 to C13 from the given information to complete this question.) Juan Rojo, Incorporated 10-Year Bond McAllister Avionics 9-Year Bond…
- Consider a P1,000 par value bond issued by MERALCO with maturity date of 2026 and a stated coupon rate of 8.5%. On January 1, 2007, the bond had 20 years left to maturity, and the market's required yield to maturity for similar rated debt was 7.5%. Based on the market's required yield to maturity, what is the value of the bond? STEP 1: Timing and Amount of cash flows STEP 2: Determine the YTM discount rate STEP 3: Compute for the PV of cash flowsTo calculate the number of years until maturity, assume that it is currently May 2019. All of the bonds have a $1,000 par value and pay semiannual coupons. Maturity Mo/Yr Ask Yld Rate Asked 103.5362 103.8235 Bid Chg +.3204 ?? May 25 2.18 5.850 May 27 103.1840 103.3215 +.4513 ?? 6.125 May 36 ?? ?? +.6821 3.87 a. In the above table, find the Treasury bond that matures in May 2036. What is the asked price of this bond in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the bid-ask spread for this bond is .0628, what is the bid price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Asked price b. Bid priceAssume that today's date is February 15, 2015. Robin Hood Inc. bond is an annual-coupon bond. Par value of the bond is $1,000. How much you will pay for the bond if you purchased the bond today? The answer should be calculated to two decimal places Company Price Robin Hood 88.401 Your Answer: Answer Coupon Rate 6.148 Maturity Date 2-15-2034 YTM Current Yield Rating D