Question: need help with question 11 and 12 Question 11 (4 points) You are considering buying bonds in ACBB, Inc. The bonds have a par value
Question 11 (4 points) You are considering buying bonds in ACBB, Inc. The bonds have a par value of $1,000 and mature in 18 years. The annual coupon rate is 20.0% and the coupon payments are annual. If you believe that the appropriate discount rate for the bonds is 19.0%, what is the value of the bonds to you? $1.241.60 $1,050.33 $951.88 $1.134.74 $1.155.53 Question 12 (4 points) Within Year, Inc. has bonds outstanding with a $1,000 par value and a maturity of 27 years. The bonds have an annual coupon rate of 20.0% with quarterly coupon payments. You would expect a quoted annual return of 10.0% if you purchased these bonds. What are the bonds worth to you? $502.57 $1.977.05
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