Reference no: EM133066547
Question - Christian & Company Limited (CCL) used debt to finance its acquisition of a business venture in St. Vincent and issued a 32-year bond series as per the approval of the board of directors. The bonds were issued on January 1, 2019, with a $1,000 par value and pay semi-annual coupons at a rate of 11% per annum. Coupons are paid on June 30 and December 31 each year.
Required -
i) What is the maturity date of these bonds (month, day, and year)?
ii) What would be the value of the bonds on July 1, 2029, if the interest rates had risen to 14%?
iii) What would be the value of the bonds on January 1, 2043, if the interest rates had fallen to 8%? Based on the price, how would these bonds be classified?
iv) Calculate the yield to maturity on the bonds on July 1, 2049, if they were selling for $954 at that time.
|
What is the unemployment rate
: What is the Unemployment rate in the Bahamas and how does it affect economic growth?
|
|
Find exchange rate movements
: When investing excess cash for a short period of time, e.g, three or six months, if an MNC is not sure about exchange rate movements, it may prefer to diversify
|
|
How costa group might face economic exposure
: Assume that Costa Group, Australia's largest horticultural company, has subsidiary in several Asian countries, including Malaysia, Thailand, Singapore and Indon
|
|
Describe how approaches work
: As you probably know Treasury Wine is an Australian wine maker and sells its products in many overseas markets.
|
|
What is the maturity date of these bonds
: The bonds were issued on January 1, 2019, with a $1,000 par value and pay semi-annual coupons at a rate of 11% per annum. What is the maturity date
|
|
How has the old age survivors insurance tax changed
: How has the Old Age Survivors Insurance Tax changed over time? Why is military spending so expensive?
|
|
What price does firm charge customers
: A firm has $1.6 million in sales, a Learner index of 0.55, and a marginal cost of $45, and competes against 1000 other firms in its relevant market.
|
|
What is the interest
: On a $1,000,000 principal, 91-day investment, what is the interest payable if we use an Actual/365 basis? What is the interest if the basis is Actual/360
|
|
Why these specific certifications may be best for you
: Discuss with the group why these specific certifications may be best for you as you pursue your career future.
|