Caspian Sea Drinks needs to raise $41.00 million by issuing bonds. It plans to issue a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Caspian Sea Drinks needs to raise $41.00 million by issuing bonds. It plans to issue a 19.00 year semi-annual pay bond that has a coupon rate of 5.18%. The yield to maturity on the bond is expected to be 4.83%. How many bonds must Caspian Sea issue? (Note: Your answer may not be a whole number. In reality, a company would not issue part of a bond.) Submit Answer format: Number: Round to: 0 decimal places. Assume a par value of $1,000. Caspian Sea plans to issue a 27.00 year, annual pay bond that has a coupon rate of 18.00%. If the yield to maturity for the bond is 18.0%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. The market price of a semi-annual pay bond is $990.73. It has 12.00 years to maturity and a coupon rate of 6.00%. Par value is $1,000. What is the yield to maturity? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) Caspian Sea Drinks needs to raise $41.00 million by issuing bonds. It plans to issue a 19.00 year semi-annual pay bond that has a coupon rate of 5.18%. The yield to maturity on the bond is expected to be 4.83%. How many bonds must Caspian Sea issue? (Note: Your answer may not be a whole number. In reality, a company would not issue part of a bond.) Submit Answer format: Number: Round to: 0 decimal places. Assume a par value of $1,000. Caspian Sea plans to issue a 27.00 year, annual pay bond that has a coupon rate of 18.00%. If the yield to maturity for the bond is 18.0%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. The market price of a semi-annual pay bond is $990.73. It has 12.00 years to maturity and a coupon rate of 6.00%. Par value is $1,000. What is the yield to maturity? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434))
Expert Answer:
Answer rating: 100% (QA)
1 No of periods 19 years 2 38 semiannual periods Coupon per ... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
You own a bond that has a 7% coupon rate and matures in 12 years. You purchased this bond at par when it was originally issued. If the current market interest rate for this type of bond is 7.5% then...
-
What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond that sells for $887.00? That sells for $1,134.20? What does a bond selling at a discount or at a premium tell you...
-
How does the yield to maturity on a bond differ from the coupon yield or current yield?
-
Consider a property investment that you finance with 20% down payment. For the remaining, you borrow 2'300'000 at a 6% rate monthly amortized loan for 25 years. This property, with 2% of EBITDA as...
-
Each of the following internal controls has been taken from a standard internal control questionnaire used by a CPA firm for assessing control risk in the payroll and personnel cycle. 1. Approval of...
-
In the context of this chapter, make a list of three takeaways from this feature that you can learn from and try to avoid if you set out to solve a problem by launching a business.
-
Continuation of E9-31: Compute payback and ARR with no residual value (Learning Objective 2) Refer to the Deer Valley Expansion Data Set. Assume that the expansion has zero residual value....
-
Pine Village needs some additional recreation fields. Construction will cost $225,000 and annual O&M expenses are $85,000. The city council estimates that the value of added youth leagues is about...
-
Multiple Select Question Select all that apply Which of the following steps are necessary to reconcile the bank balance and the cash account balance. Multiple select question. Adjust the company's...
-
1. Is anything unique about Chriss idea? Explain. 2. What is the first thing he should do to follow up on his idea? Explain. 3. When this is done, what else should Chris do? Outline a general course...
-
where to Create a credit memo for the difference between the original amount and the new reduced amount plus HST
-
A football league reported that the mean number of touchdowns per game was five. A study is done to determine if the mean number of touchdowns has decreased. indicate which of the following choices...
-
Explain why the Department of Health and Human Services was created.
-
The primary function of the hospital is to care for the sick and injured. The scope of services offered by hospitals continues to expand. a. Treating the sick and injured b. Preventing illness c....
-
The mean number of English courses taken in a twoyear time period by male and female college students is believed to be about the same. An experiment is conducted and data are collected from nine...
-
A law is a general rule of conduct that is enforced by the government. When a law is violated, the government imposes a penalty. Public laws deal with the relationships between individuals and the...
-
maximize Z=3x_(1)+4x_(2) Subject to : 2x_(1)+x_(2) =0 and integral Introducing slack variables x_(3) , and x_(4) and then solving the resulting program
-
Imagine that your best friend knows you are taking a psychology course and wonders what psychology is all about. How would you define psychology for your friend? Write an essay on the discipline of...
-
List the accounting entries for the payment and allocation of overheads.
-
1. What are the relevant costs and benefits relating to the Garden Bridge? 2. Why might managers be reluctant to abandon loss-making projects?
-
A company is considering offering its customers an early settlement discount. The company currently receives payments from customers on average 65 days after the invoice date. The company is...
-
Drop a department: revised information (Learning Objective 4) Consider Knight Fashion from S8-5. Assume that the fixed expenses assigned to each department include only direct fixed costs of the...
-
Product mix decision: unlimited demand (Learning Objective S) StoreAll produces plastic storage bins for household storage needs. The company makes two sizes of bins: large (50 gallon) and regular...
-
Replace a department (Learning Objective 4) Consider Knight Fashion from S8-5. Assume once again that all fixed costs are unavoidable. If Knight Fashion drops one of the current departments, it plans...
Study smarter with the SolutionInn App