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10-1 A bond has 8 years to maturity, a 7 % coupon, a $1,000 face value, and

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10-1 A bond has 8 years to maturity, a 7 % coupon, a $1,000 face value, and pays interest semiannually. What is the bond's current price if the yield to maturity in 6.84%?;10-2 The outstanding bonds of International Plastics mature in 4 years and pay semiannual interest payments of $32.50 on a $1,000 face value bond. The bonds are currently selling for $1,008.64. The coupon rate is __________%, the current yield is ___________%, and the yield to maturity is ___________%.;10-3 You are considering two bonds. Both have semi-annual, 8 percent coupons, $1,000 face values, and yields to maturity of 7.7% Bond S matures in 4 years and Bond L matures in 8 years. What is the difference in the current prices of these bonds?;10-4 Cochran's Furniture Outlet is issuing 30 year, 12% callable bonds. These bonds are callable in 5 years with a call premium of $60. The bonds are being issued at par and pay interest semi-annually. What is the yield to call?;10-5 A $1,000. par value bond has a market price of $986 and a conversion ratio of 16. The stock is selling for $61.60. What is the conversion value?;10-6 A semi-annual coupon bond has a 6.5% coupon rate, a $1,000 face value, a current value of $1,039.18, and 4 years until the first call date. What is the call price if the yield to call is 6.7%?;10-7 The Bronze Star has 8%, semi-annual coupon bonds outstanding that have a face value of $1,000 and a conversion ratio of 24. The bonds mature in 14 years. Comparable, non-convertible bonds are yielding 7.6 %. The firm also has shares of common stock outstanding at a price of $51 a share. The intrinsic value of the bond is___________ and the conversion value is____________.;10-8 A firm has a major fire which hampered operations of the past year. As a result, the firm discounted all dividends for one year. Next month, the firm will resume paying dividends. The normal quarterly payments are $1.50 for the cumulative preferred shares and $0.95 for the common shares. How much will the firm need to pay the preferred shareholders per share if the firm also pays a common dividend?;10-9 A Treasury bond matures in 12.5 years, has a 5.25% coupon, and a quoted price of 98:01. What is the yield to maturity?;10-11 Municipal bonds are yielding 4.8% currently. Alicia has a marginal tax rate of 36% and Yvonne has a marginal tax rate of 22%. Alicia's equivalent taxable yield is _______% and Yvonne's is ______%;10-12 A $5,000. face value municipal bond matures in 14 years and is priced at $4,682. The coupon rate is 4.5% with interest paid semi-annualy. What is the yield to maturity on the bond?

 

Paper#31898 | Written in 18-Jul-2015

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