Question: can you please do these in excel AB Builders, Inc. has 12-year bonds outstanding with a face value of $1,000 and a market price of
can you please do these in excel
AB Builders, Inc. has 12-year bonds outstanding with a face value of $1,000 and a market price of $974. The bonds pay interest annually and have a yield to maturity of 4.03 percent. What is the coupon rate?
| 3.75 percent | ||
| 4.20 percent | ||
| 4.25 percent | ||
| 7.50 percent | ||
| 8.40 percent |
LKM, Inc. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 6.5 percent coupon bonds on the market that sell for $972.78, make semiannual payments, and mature in 20 years. What coupon rate should the company set on its new bonds if it wants them to sell at par?
| 6.25 percent | ||
| 6.37 percent | ||
| 6.50 percent | ||
| 6.67 percent | ||
| 6.75 percent |
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