Module $5-$ Part $1$ HOMEWORK $-$ Long$-$Term Debt Financing

Choice: $$1,357\mathrm{.}40$

$4.$ Tidewater Home Health Care, Inc., has a bond issue outstanding with eight years remaining to maturity, a coupon rate of $10\%$ with interest paid annually, and a par value of $$1,000.$ The current market price of the bonds is $$1,251\mathrm{.}22.$ What is the bond's yield to maturity?

Choice: $4\mathrm{.}50\%$

Choice: $5\mathrm{.}23\%$

Choice: $5\mathrm{.}00\%$

Choice: $5\mathrm{.}96\%$

$5.$ Tidewater Home Health Care, Inc., has a bond issue outstanding with eight years remaining to maturity, a coupon rate of $10\%$ with interest paid semi$-$annually, and a par value of $$1,000.$ The current market price of the bonds is $$1,251\mathrm{.}22.$ What is the bond's yield to maturity?

Choice: $2\mathrm{.}5\%$

Choice: $5\mathrm{.}0\%$

Choice: $6\mathrm{.}0\%$

Choice: $100\%$

$6.$ Minneapolis Health System has bonds outstanding that have four years remaining to maturity, a coupon interest rate of $9\%$ paid annually, and a $$1,000$ par value. What is the yield to maturity on the issue if the current market price is $$829?$

Choice: $10\mathrm{.}00\%$

Choice: $12\mathrm{.}87\%$

Choice: $14\mathrm{.}99\%$

Choice: $23\mathrm{.}45\%$

$0042\mathrm{.}75$

qo$.$

$\frac{100-929}{4}\frac{110+829}{2}$

Minneapolis Health System has bonds outstanding that have four years remaining to maturity, a coupon interest rate of $9\%$ paid annually, and a $$1,000$ par value. What is the yield to maturity on the issue if the current market price is $$1,104?$

Choice: $6,00\%$

Choice: $8\mathrm{.}00\%$

Choice: $10\mathrm{.}00\%$

Choice: $12\mathrm{.}00\%$