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A bond with a $100 yearly interest payment with 5 years to maturity [not expected to default] would sell for a premium if interest rates were below 9% and would sell for a discount if interest values
The following bond quotations are taken from the Wall Street Journal dated Friday, September 5, 2003. Why is the yield [yield to maturity] on the General Motors bond so much higher than the yield on t
Consider the Allied Signal Corporation zero coupon money multiplier notes of 2008. The bonds were issued on July 1, 1990, for $100. Interest is paid every July 1 and the bond matures July 1, 2008. Det
Two bonds are identical except for their maturity. The bonds have a coupon rate that is greater than their yield to maturity. Determine which of the following is true when comparing the two bonds?
SWH Corporation issued bonds on January 1, 2004. The bonds had a coupon rate of 4.5 percent, with interest paid semiannually. The face value of the bonds is 1,000 dollar and the bonds mature on Januar
Aaron Corporation has 2 bonds outstanding. Both bonds mature in ten years, have a face value of $1,000, & have a yield to maturity of 8 percent.
Thatcher Corporation’s bonds will mature in ten years. The bonds have a value of $1000.00 and an 8 percent coupon rate, paid semiannually. The price of the bonds is $1,100.
Health Foods’ bonds have seven years remaining to maturity. The bonds have a face value of $1000.00 & a yield to maturity of 8 percent. They pay interest yearly & have a 9% coupon rate.
The Lone Star Company has $1,000 par value bonds outstanding at 9% interest. The bonds will mature in twenty years.
Suppose that the following quote for the Financial Management Corporation’s 1,000 dollar par value bond was found in the Wednesday, November 8, issue of the Wall Street Journal.
Suppose that you are considering the purchase of a fifteen year bond with an annual coupon rate of 9.5%. The bond has face value of 1,000 dollar and makes semiannual interest payments.
Ezzell Enterprises’ non callable bonds currently sell for 1,165 dollar. They have a 15 year maturity, a yearly coupon of $95, and a par value of 1,000 dollar.
The Morrissey Company’s bonds mature in seven years, have a par value of $1,000, & make an annual coupon payment of 70 dollar. The market interest rate for the bonds is 8.5 percent.
Ciza Inc. raised 100 million dollar by floating corporate bonds. Each bond paid a coupon of 7% with a Par Value of 1000.00 dollar and will mature in four years.
You are considering Dell Company and MCI Company bonds. Dell Company bonds mature in ten years and have a coupon rate of 10 percent with interest paid semiannually.
DAH, Inc. has issued a 12% bond that is to mature in nine years. The bond had a 1,000 dollar par value and interest is due to be paid semiannually. If your required rate of return is 10 percent,
A bond that pays interest forever & has no maturity is a perpetual bond. In what respect is a perpetual bond similar to a non growth common stock?
Compute the duration of a bond which matures in five years, has a face value of $1,000 & a coupon rate of 8%, when the interest rate on comparable assets is 3 percent.
Compute the price of the following bonds, where F is the face value, c is the coupon rate, N is the number of years to maturity, & it is the interest rate [or discount rate, or yield]:
Describe the Treasury yield curve by using the "Illustrative Treasury Yield Curves" [Figure 6-5] in your text, Fundamentals of Financial Management.
Find a bond on the Wall Street Journal or other online service & determine its YTM. Describe why your bond is trading at a premium or discount based on current market conditions.
Cuinn Electric Company has outstanding a bond issue that will mature to its 1,000 dollar par value in 12 years. The bond has a coupon rate of 15 percent and pays the interest yearly.
Determine which one of the following rates is the best measure of the raised purchasing power you can realize from a bond investment?
A bond has a par value of 1000 dollar, a current yield of 6.452%, annual interest payments, and eight years to maturity. The bond quote is 92.976
Ventures Unlimited has 7% coupon bonds outstanding with a face value of 1000 dollar and a market price of $926.97. The bonds pay interest semiannually & have a yield to maturity of 7.87%.