Project #60257 - finance

MUST SHOW ALL STEPS AND ALL WORK.

(1)  Darlyn Company's bonds mature in 10 years, have a par value of $1,000, and make an annual coupon interest payment of $45.  The market requires an interest rate of 5.0% (yield to maturity = 5.0%) on these bonds.  What is the bond's price?

(2)  Crossdyme Corporation issued 30-year, noncallable, 8.5% annual coupon bonds at their par value of $1,000 one year ago.  Today, the market interest rate on these bonds is 10%.  What is the current price of the bonds, given that they now have 29 years to maturity?

 

 

 

(3)  Assume that you are considering the purchase of a 30-year, noncallable bond with a coupon rate of 4%.  The bond has a face value of $1,000, and it makes semiannual interest payments.  If you require a 5% yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

 

(4)  Kordyk Corporation's bonds have a 15-year maturity, a 8.2% semiannual coupon, and a par value of $1,000.  The going interest rate (YTM) is 8.0%, based on semiannual compounding.  What is the bond’s price?

 

(5)  Dylon's bonds currently sell for $1,050 and have a par value of $1,000.  They pay a $55 annual coupon and have a 20-year maturity.  What is their yield to maturity (YTM)?

 

(6)  Signature Sweets, Inc. has 8 percent semiannual bonds outstanding with 15 years to maturity. The latest quote on these bonds is 109.16 percent of the face value. What is the yield to maturity?

 

 

(7)  An annual, 15-year bond is currently selling for $1,015 and has a yield to maturity of 5.0 percent. What is the coupon rate of this bond if the face value is $1,000? (Hint: Compute the PMT first)

 

(8)  Malkol Enterprises’ bonds currently sell for $1,045. They have a 5-year maturity, an annual coupon of $55, and a par value of $1,000. What is their current yield?

 

 

(9) 15-year, $1,000 par value bond has an 6.0% annual coupon payment.  The bond currently sells for $935.  If the yield to maturity remains at its current rate, what will the price be 10 years from now?

 

Subject Business
Due By (Pacific Time) 03/01/2015 01:00 pm
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