Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% coupon rate (paid semiannually), and a par value of $1,000. The going interest rate (rd) is 7.50%. What should be the bond's fair value? $977.71 $860.39 $899.50 $1,202.59 $821.28
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- 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?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?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. $1,359.01
- Moerdyk Corporation's bonds have a 15-year maturity, a 5.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 6.20%, based on semiannual compounding. What is the bond’s price? $908.09 $977.10 $1,101.58 $1,203.22Fingen's 14-year, $1,000 par value bonds pay 9 percent interest annually. The market price of the bonds is $1,100 and the market's required yield to maturity on a comparable-risk bond is 6 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond?Morin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 6.1% on these bonds. What is the bond's price? O a. $1,024.74 O b. $1,116.97 O c. $1,147.71 O d. $1,096.47 O e. $1,280.93
- Fingen's 16-year, $1,000 par value bonds pay 11 percent interest annually. The market price of the bonds is $1,090 and the market's required yield to maturity on a comparable-risk bond is 8 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond? What is your yield to maturity on the Fingen bonds given the market price of the bonds? __% (Round to two decimal places.)Fingen's 11-year, $1,000 par value bonds pay 11 percent interest annually. The market price of the bonds is $1,110 and the market's required yield to maturity on a comparable-risk bond is 8 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond?Fingen's 18-year, $1 comma 000 par value bonds pay 9 percent interest annually. The market price of the bonds is $930 and the market's required yield to maturity on a comparable-risk bond is 8 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond?
- Happy Valley Corporation has bonds on the market with 14.5 years to maturity, a YTM of 6.1%, face value of $1000 and a current price of $1038. The bonds make semiannual payments . What must the coupon rate be on these bonds?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 _____________ BondsMiles Corporation's bonds have a 15-year maturity, an 8% semi-annual coupon, and a par value of $1,000. The going interest rate is 5.50%, based on semi-annual compounding. What is the bond's price? Select one: a. $1,211.90 b. $1,253.11 c. $1,200.44 d. $1,295.85