Question: please write it out and show your work:) thank you!! Kramer Enterprises issued 25 year bonds 7 years ago with a coupon rate of 8.2%.

please write it out and show your work:) thank you!!

Kramer Enterprises issued 25 year bonds 7 years ago with a coupon rate of 8.2%. Currently, the bonds sell at a price of $925. 1. Are these bonds discount, par value, or premium bonds? 2. Assuming semi-annual coupon payments, what is this bond's yield to maturity (YTM)? 3. If the YTM were to increase by one percentage point, what would you expect to happen to the price of the bond? 4. One year later the YTM increases by 1%, by what percentage would the price of the bond change as a result of this 1% increase in the YTM? Edit View Insert Format Tools Table 12pt Paragraph B IU A 2 T

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Please answer the following and show all work. The Durango Company issued a 25-year bond 5 years ago with a lace value of $1,000. The bond pays interest semiannually at 10% annual coupon rate. What...

Please show work. E) DOT Enterprises issued 20 year bonds two years ago at a coupon rate of 5.3 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par...

MOVEFREE, INC.: Acquisition of Ortholuv.com MoveFree, Inc., a publicly traded firm specialize in trendy and comfortable apparel has experienced a slow growth in sales and profitability in recent...

Please show work in excel. Question 1 15 points Save Answer In December 2010, Lolo Limon issued $100 million in bonds. These bonds originally had a 25 year maturity, a 8.5% coupon rate, and...

please get right. i posted these two and the person sent back imvorrect answers. thank you Ashburn Company issued 13 -year bonds two years ago at a coupon rate of 9.8 percent. The bonds make...

Instructions: For calculation questions the final answer should be formatted in dollars too the nearest cent and percentage to two (2) decimal places. No rounding of intermediate work. QUESTION 1...

Kramerica Industries Inc. issued 25 year bonds 5 years ago. The bonds offer an 8.2% annual coupon rate. Currently, the bonds sell at a price of $925. Assuming semi-annual coupon payments, what is...

Kent Enterprises issued 2 5 - year bonds 6 years ago with a coupon rate of 6 . 2 % . Currently, the bonds sell at a price of $ 8 5 0 . Are these bonds discount, par value, or premium bonds? _ _ _ _ _...

FIN201 Please be the person's solution and not be copies Q1. Alfa Company is issuing eight-year bonds with a coupon rate of 6.5 percent and semiannual coupon payments. If the current market rate for...

Please provide excel formula for the solution 7. Bond Yields [LO2] West Corp. issued 25 -year bonds two years ago at a coupon rate of $ 5.3 $ percent. The bonds make semiannual payments. If these...

The company buys a research kit for $20,000. At the end of 9 years it can be sold for $600. Uses 60% bond depreciation along with MACRS. Prepare the depreciation schedule and use it to fill in the...

Several oil companies are jointly planning to build an oil pipeline to connect several southwestern, southeastern, and midwestern cities, as shown in the following network: The miles between cities...

Mary Moneypenny is an Investment Advisor for a Canadian Investment Dealer firm. On Tuesday Ms . Moneypenny visits a client and discusses an IPO her firm is underwriting. At the end of the meeting,...

The main functional responsibilities of the Purchasing department do NOT include: A . Balance sheet management B . Supplier management C . Demand management D . Cost management E . Spend analysis

5. If yes, then why?

6. How would you design your ideal position?

4. What reaction would you expect of employees at the conventional level?