Question: Suppose a team issues a 30 -year bond for $10 million It has an interest rate of 8%. The current discount rate projection is 3%.

 Suppose a team issues a 30 -year bond for $10 million
It has an interest rate of 8%. The current discount rate projection

Suppose a team issues a 30 -year bond for $10 million It has an interest rate of 8%. The current discount rate projection is 3%. How much will the bond cost the team at the end of its life? A. What is the present value of the bond? B. If the team pays off the bond in year 10 what will it cost them? C. If the current price off the bond was $8,870,000. What would the current yield be? D. If a year later the bond was worth $950,000. What is the capital gains yield? E. What is the total expected return for this bond? 1. The Broomfield Bricklayers issue a bond that has a value of 1,000 and an annual coupon rate of 9%. The year to maturity is 10 years with a projected 3% discount Rate. What is the present value of this bond for a buyer. 2. If after 5 years, they want to pay off the bond what is the call premium. How much will they have to pay the owner of the bond at the end of year 5 . 3. Calculate the current yield of the bond if the bond's current price was $974. 4. If the sale price of this bond was $1,103 a year later, what is the capital gains yield? 5. What would the total expected return for the bond be? 6. Solve for the present value of the 10 -year bond on its issue date. The bond has a par value of $1,000, coupon rate of 10%, and a discount rate of 8%

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