What is the coupon rate of the bond

Assignment Help Financial Management

Reference no: EM131336197

1) Beam Inc. bonds are trading today for a price of $706.20. The bond currently has 22 years until maturity and has a yield to maturity of 6.56%. The bond pays annual coupons and the next coupon is due in one year. What is the coupon rate of the bond? The coupon rate of the bond is?

2) With celebrity bonds, celebrities raise money by issuing bonds to investors. The royalties from sales of the music are used to pay interest and principal on the bonds. In April of 2009, EMI announced that it intended to securitize its back catalogue with the help of the Bank of Scotland. The bond was issued with a coupon rate of 6.8% and will mature on this day 24 years from now. The yield on the bond issue is currently 6.15%. At what price should this bond trade? today, assuming a face value of ?$1,000 and annual coupons? The price of the bond today should be $ .

3) What is the price of a 44-year, 8.3 % coupon rate, $1,000 face value bond that pays interest annually if the yield to maturity on similar bonds is 6.7 %6.7% The price of the bond is$ .

4) If the nominal rate of interest is 13.82% and the real rate of interest is 8.49%, what is the expected rate of inflation? The expected rate of inflation is ?%

Reference no: EM131336197

Questions Cloud

What is the collection forecast : Use the data below from a company 's sales for January to April to get a forecast for the collection forecast, including cash sales, for April: Month Sales. Of the sales above, 30% are for cash and 70% are for credit. Of the credit sales, 58% are col..

What will these equal payments be : Dave purchased a new house for $170000. He put 30000 down and agreed to pay the rest over the next 20 years in 20 equal end-of-year payments plus 7% compound interest on the unpaid balance. What will these equal payments be?

What will be the price of the company shares : Boondocks Inc. has 30 million shares outstanding at a price of $40 each. The company is planning a seasoned equity offering (SEO). It will issue an additional 10 million shares at a subscription price of $32. How many new shares can she buy in the S..

Taxes and capital markets are perfect : QWERTY Logistics announced that they will pay a dividend of $10. Their stock is currently trading at a price of $110. There are no taxes and capital markets are perfect. Hans-Eberhard prefers a $20 dividend. He currently owns 100 shares. What should ..

What is the coupon rate of the bond : Beam Inc. bonds are trading today for a price of $706.20. The bond currently has 22 years until maturity and has a yield to maturity of 6.56%. The bond pays annual coupons and the next coupon is due in one year. What is the coupon rate of the bond? T..

Order to guard against adverse exchange rate changes : Middlebury Herbal Products, a United Kingdom based multi-national corporation, is a producer of herbal teas, seasonings, and medicines. Middlebury generally invoices in British pound sterling when it sells to foreign customers in order to guard again..

The fair price for one of cyberdyne zero coupon bonds is : Cyberdyne Systems is issuing a series of zero coupon bonds to raise? $500M to fund research and development at its Skynet division. Each bond will have a face value of ?$1,000 and will mature in 55 years. The yield on the bond is 33?%. What is the fa..

Speculate on the value of the canadian dollar : Quasik Corporation would like to use a currency option to speculate on the value of the Canadian dollar in 90 days. Quasik believes the value of the Canadian dollar in 90 days will be $.70. Currently, a 90-day call option with an exercise price of $...

What is the nominal interest rate in the united states : Nominal annual interest rates in Cyprus are 7.8431%. The spot rate for the Cyprus pound (CYP) is $1.50 and the Cyprus pound is expected to adjust to a future spot rate (one year from today) of $1.53. According to the international Fisher effect (IFE)..

User Account

All Pages