(Bondholders' expected rate of return) Zenith Co.'s bonds mature in 8 years and pay 9 percent interest annually. If you purchase the bonds for $700, what is your expected rate of return? Your expected rate of return is www %. (Round to two decimal places.)
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- The interest rate on one-year Treasury bonds is 1.1 percent, the rate on two-year T-bonds is 1.3 percent, and the rate on three-year T-bonds is 1.5 percent. Using the expectations theory, compute the expected one-year interest rate in the second year (Year 2 only). Round your answer to one decimal place. _________ % Using the expectations theory, compute the expected one-year interest rate in the third year (Year 3 only). Round your answer to one decimal place. _________ %Fold in the Cheese, Inc. is issuing $850000 of 8% 10-year bonds. These bonds will pay semi-annual interest payments. The market interest rate is currently 6%. Required: Compute what your bonds are worth. Round all calculations to 2 decimals. Record the sale of the bond with a journal entry. Record the journal entry for your first interest payment.Chuck's of Czechia is selling a perpetual bong that will provide the bondholder with a $50 / year forever. The first payment to the bondholder is later this afternoon and then the following payment is one year from now. Assuming an interest rate of 6%, what is the value of this bond? Choose the closest. a) $666.67 b) $833.33 c) $333.33 d) $883.33
- The saleemi corporation’s is $1,000 bonds pay 9 percent interest rate annually and have 9 years until maturity. You can purchase the bond for $935. A. What is the yield to maturity on this bond? B. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 9 percent ? A. The yield to maturity on the saleemi bonds is Round to two decimal places(Related to Checkpoint 9.2) (Yield to maturity) Hoyden Co.'s bonds mature in 9 years and pay 8 percent interest annually. If you purchase the bonds for $725, what is their yield to maturity? The yield to maturity on the Hoyden bonds is%. (Round to two decimal places.)(Related to Checkpoint 9.2) (Yield to maturity) Hoyden Co.'s bonds mature in 8 years and pay 11 percent interest annually. If you purchase the bonds for $1,075, what is their yield to maturity? Question content area bottom Part 1 The yield to maturity on the Hoyden bonds is enter your response here%. (Round to two decimal places.)
- the following features: • Coupon rate of interest (paid annually): 10 percent • Principal: $1,000 • Term to maturity: 8 years a. What will the holder receive when the bond matures? |-Select- b. If the current rate of interest on comparable debt is 7 percent, what should be the price of this bond? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. Would you expect the firm to call this bond? Why? -Select- v, since the bond is selling for a-Select- v. c. If the bond has a sinking fund that requires the firm to set aside annually with a trustee sufficient funds to retire the entire issue at maturity, how much must the firm remit each year for eight years if the funds earn 7 percent annually and there is $80 million outstanding? Use Appendix C to answer the question. Round your answer to the nearest dollar.The Saleemi Corporation's $1,000bonds pay 5 percent interest annually and have 13 years until maturity. You can purchase the bond for $1,075. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 3 percent? The yield to maturity on the Saleemi bonds is ______%. (Round to two decimal places.(Related to Checkpoint 9.2) (Yield to maturity) Abner Corporation's bonds mature in 18 years and pay 7 percent interest annually. If you purchase the bonds for $875, what is your yield to maturity? Your yield to maturity on the Abner bonds is %. (Round to two decimal places.)
- The saleemi corporation’s $1,000 bonds pay 6 percent interest annually and have 11 years until maturity. You can purchase the bond for $875. A. What is the yield to maturity on this bond? B. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 6 percent? A. The yield to maturity on the saleemi bonds is Round to two decimal placesThe Saleemi Corporation's $1000 bonds pay 7 percent interest annually and have 14 years until maturity. You can purchase the bond for $1,095. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 4 percent? ___________________________________________________________________________a. The yield to maturity on the Saleemi bond is ____ %. (Round to two decimal places.)Use the following tables to calculate the present value of a $789,000 @ 6%, 6-year bond that pays $47,340 interest annually, if the market rate of interest is 7%. Round to the nearest dollar.