PRINCIPLES OF BUSINESS FINANCE
1- If a company-issued 130,000 bonds with a coupon value of $108.00 per semester (paid semiannually), maturing in 17 years. YTM is 6.35%, and each bond has a face value of $4,000.How much did this company raise with the issuance of these bonds?
2- If a bond is quoted at 90.80% of face value and has a face value of $1,000, what is the coupon dollar value and coupon rate of this bond, considering that investors require a rate of return of 5.55%, and this bond pays coupons twice a year?
3- Perez Inc. needs to raise $ 66.43 million for a new project, and the management decided doing that by issuing bonds with a coupon rate of 6.66% paid semiannually, with a maturity of15 years. The initial YTM is expected to be of 5.89% the bonds have an individual face value of $1,500. How many bonds need to be issued to raise the amount the company needs for the new project?
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