An analyst, Tyler, observes a Shin’s Korea BBQ Group, 8.17%, 14-year, quarterly pay bond trading at 102.347% of par, where par value is $1,000. The bond is callable at 99 in five years. The bond’s yield-to-call (YTC) is closest to A. 7.437%. B. 6.296%. C.
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An analyst, Tyler, observes a Shin’s Korea BBQ Group, 8.17%, 14-year, quarterly pay bond trading at 102.347% of par, where par value is $1,000. The bond is callable at 99 in five years. The bond’s yield-to-call (YTC) is closest to
7.437%.
6.296%.
5.578%.
3.701%.
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- An analyst observes a GUI & Co 6.625%, 5 year semi-annual pay bond trading at 103.164% of par (where par = $1,000). The bond is callable at 102.5 in 3 years and putable at 99 in 3 years. #3: what are the bond's current yield and yield to maturity? #4. What's the bond's yield to call and put? EC: Do you expect that the bond would be called and/or put? Why or Why not?An analyst, Daniel, observes Apple Inc. (AAPL), 5.18%, 19-year, quarterly pay bond trading at 104.514% of par, where par value is $1,000. The bond is callable at 98 in six years. The bond’s yield-to-call (YTC) is closest to A. 3.70%. B. 4.03%. C. 4.58%. D. 5.01%.Marshall Company is issuing eight-year bonds with a coupon rate of 6.19 percent and semiannual coupon payments. If the current market rate for similar bonds is 9.23 percent. a). What will be the bond price? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and bond price to 2 decimal places, e.g. 15.25.) Bond price $ ________________ b). If the company wants to raise $1.25 million, how many bonds does the firm have to sell? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and number of bonds to 0 decimal places, e.g. 5,275.) Number of bonds ____________bonds?
- Showbiz, Inc., has issued eight-year bonds with a coupon of 7.33 percent and semiannual coupon payments. The market’s required rate of return on such bonds is 7.81 percent. a. What is the market price of these bonds? (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answer to 2 decimal places, e.g. 15.25.) Market price $ ______________ b. If the above bond is callable after five years at an 10.8 percent premium on the face value, what is the expected return on this bond? (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answer to 2 decimal places, e.g. 15.25%.) Expected return _____________%14. An analyst observe a widget & Co. 7.125 %, 4 - year, semiannual - pay bond trading at 102.347% of par (where par = $1,000). The bond is callable at 101% in two years and putable at 100% in two years. What is the bond's current yield? A. 6.962% B. 7.500% C. 7.426% D. 7.328%Marshall Company is issuing eight-year bonds with a coupon rate of 6.19 percent and semiannual coupon payments. If the current market rate for similar bonds is 9.23 percent. What will be the bond price? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and bond price to 2 decimal places, e.g. 15.25.) Bond price $ ___________ If the company wants to raise $1.25 million, how many bonds does the firm have to sell? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and number of bonds to 0 decimal places, e.g. 5,275.) Number of bonds _____________ Bonds
- (Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation relationships) The 15-year, $1,000 par value bonds of Waco Industries pay 6 percent interest annually. The market price of the bond is $1,065, and the market's required yield to maturity on a comparable-risk bond is 4 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond. c. Should you purchase the bond? a. What is your yield to maturity on the Waco bonds given the current market price of the bonds? nothing% (Round to two decimal places.)A corporate bond matures in 2 years, pays semi-annual coupons, has a coupon rate of 5.8% and a AA credit rating. A 2-year Treasury bond that makes payments on the same days as the corporate bond has a yield to maturity of 2.2% (APR, semiannual compounding). The credit spread on AA bonds is 89 basis points (0.89%). What should be the price of the corporate bond? Assume a $1,000 face value. Assuming a $1,000 face value, the price of the bond is $ (Round to the nearest cent.)The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semi-annually. Assuming that this bond trades for $903, then the YTM for this bond is closest to: O A. 10.7% OB. 6.8% O C. 9.2% O D. 9.9% OE. 8.0% CO
- (Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation relationships) The 14-year, $1,000 par value bonds of Waco Industries pay 6 percent interest annually. The market price of the bond is $1,105, and the market's required yield to maturity on a comparable-risk bond is 3 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond. c. Should you purchase the bond? a. What is your yield to maturity on the Waco bonds given the current market price of the bonds? ☐ % (Round to two decimal places.)Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 5.00%, based on semiannual compounding. What is the bond's price? O a. $1,235.47 O b. $1,457.85 O c. S1,050.15 d. $976.02 e. $1,359.01Last year Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,065 and it sells for $1,200. a. What are the bond's nominal yield to maturity and its nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places. YTM: % YTC: % Would an investor be more likely to earn the YTM or the YTC? -Select- b. What is the current yield? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Round your answer to two decimal places. % Is this yield affected by whether the bond is likely to be called? I. If the bond is called, the capital gains yield will remain the same but the current yield will be different. II. If the bond is called, the current yield and the capital gains yield will both be different. III. If the bond is called, the current yield and the capital gains yield will remain the same but the coupon rate will be…