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a. What is the current price of the bond? b. What will the price be 10 years from today?
Given each bond’s duration, what is the forecasted change in the value of the bonds?
What would be your percentage return on investment if you bought when rates were 11 percent and sold when rates were 8 percent?
A $500,000 bond issue on which there is an unamortized discount of $40,000 is redeemed for $475,000. Journalize the redemption of the bonds.
Why do US T-bills have lower interest rates than large-denomination negotiable CDs?
What will be the value of each of these bonds when the going rate of interest is (1) 5 percent, (2) 8 percent
Compute the current yield on both bonds? Which bond should be select based on your answer to part (1)?
What must the coupon on the bonds be for Bowden to be able to sell them at par?
1. Which bond should Ms Kimberly recommend be refinanced? 2. What is the NPV of the refunding?
Calculation should you use a higher or lower interest rate or a longer maturity or higher coupon rate?
What is the yield to maturity, to the nearest percent, for the following bond: current price is $908, coupon rate is 11 percent
a. What is the new yield to maturity on the bond? b. What is your rate of return over the year?
The company uses the straight-line method of amortization and has a calendar year end.
What should be the market price of the company's bonds on the bond market at 5/1/03?
What will happen to the bond price if the yield to maturity falls to 6 percent?
Make the necessary journal entry(ies) to record the retirement of these bonds.
What is the current price of each bond. Which bond experienced the greatest percentage change in price?
What is the annual amount of interest paid each year on each security if the CPI is as follows?
Then rework your answer assuming that the same bond pays semiannual coupons and the yield refers to a semiannually compounded rate.
Prepare an amortization table for the bonds purchased in E, assuming the company holds the bonds to maturity.
At what price will the bond sell in the market in 6 months, immediately after the first coupon payment, if the stated annual yield on the bond is 4%?
Assume the US economy experienced deflation during the year and that the consumer price index decreased by 1% in the first six months of the year
(a) determine the bonds' issue price on January 1, 2005, and (b) prepare the journal entry to record their issuance.
The company has run into hard times and the yield to maturity on the bonds has increased to 15 percent. What has happened to the price of the bond?
What is the effective annual interest rate on the loan?