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Ford Motor Co. has BB rated bonds outstanding that mature in 27 years, and have a 7.735% coupon rate. Coupon payments are made semi-annually.
If the appropriate required
Express your answer to the nearest cent.
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- As with most bonds, consider a bond with a iace value of $1,000. The bond's maturity is 21 years, the coupon rate is 122% paid annually, and the discount rate is 4%. What should be the estimated value of this bond in one year? Enter your answer in terms of dollars, rounded to the nearest cent.Carries Clothes, Inc. has a five -year bond outstanding that pays $60 annually. The face value of each bond is $1,000, and the bond sells for $890. Use semi- annual interest payments if it applies. What is the bond’s coupon rate? What is the current yield? What is the yield to maturity?Enterprise, Inc. bonds have a 9 percent annual coupon rate. The interest is paid semiannually and the bond mature in eight years. Their par value is $1,000. If the market’s required yield to maturity on a comparable-risk bond is 8 percent, what is the value of the bond? What is its value if the interest is paid annually? How to calculate this using mathematical calculation with formulas in finance?
- For a company, you plan to buy the following bond: Time to maturity, 6 years; coupon rate, 8%; Coupon payment, annual; Market interest rate, 8%; Face value, $1,000. Using Excel, calculate the duration of the bond. Using Excel, calculate the accumulated value of invested payment(or receipt) when you find market interest rate a year later is now 8%, 9%, and 7%, respectively. Using Excel, calculate geometric average rate of return (or realized compound return).Ford Motor Co. has BB rated bonds outstanding that mature in 18 years, and have a 8.000% coupon rate. Coupon payments are made semi-annually. If the appropriate required rate of return for this bond is 8.75, what is the value of the bond?You are considering the purchase of CJ, Inc. bonds that mature in 13 years, and have a 4.75% coupon rate. Coupon payments are made semi-annually, and the bond has a face value of $1,000. If the appropriate required rate rate of return for this bond is 4.45%, what is the value of the bond?
- A 10-year government bond has face value of OR 200 and a coupon rate of 6% paid semiannually. Assume that the interest rate is equal to 8% per year. What is the bond’s price? What is the reason for the difference in price on an annual and semiannually basis? Discuss the role of financial managers.A bond has 10 years until maturity, a coupon rate of 8.9%, and sells for $1,110. Interest is paid annually. (Assume a face value of $1,000.) What will be the rate of return on the bond?A government bond matures in 7 years, makes annual coupon payments of 5.6% and offers a yield of 3.6% annually compounded. Assume face value is $1,000. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) a. Suppose that one year later the bond still yields 3.6%. What return has the bondholder earned over the 12-month period? Rate of return b. Now suppose that the bond yields 2.6% at the end of the year. What return did the bondholder earn in this case? Rate of return
- A 10-year government bond has a face value of £100 and an annual coupon rate of 5%. Assume that the interest rate is equal to 6% per year. (a) Calculate the bond’s present value if it pays the interest annually, and also the present value if it pays semi-annually. (b) Calculate the market price of the bond when the interest rate changes to 8% please explain it on a paper with formula, not by excel.A bond has the following features: Coupon rate of interest (paid annually): 12 percent Principal: $1,000 Term to maturity: 11 years What will the holder receive when the bond matures? If the current rate of interest on comparable debt is 8 percent, what should be the price of this bond? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. $ Would you expect the firm to call this bond? Why? , since the bond is selling for a . If the bond has a sinking fund that requires the firm to set aside annually with a trustee sufficient funds to retire the entire issue at maturity, how much must the firm remit each year for eleven years if the funds earn 8 percent annually and there is $90 million outstanding? Use Appendix C to answer the question. Round your answer to the nearest dollar. $A government bond matures in 6 years, makes annual coupon payments of 4.4% and offers a yield of 2.4% annually compounded. Assume face value is $1,000. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) a. Suppose that one year later the bond still yields 2.4%. What return has the bondholder earned over the 12-month period? b. Now suppose that the bond yields 1.4% at the end of the year. What return did the bondholder earn in this case?