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- A P1,000, 6% bond pays dividend semiannually and will be redeemed at 110% on June 21, 2022. It is bought on June 21, 2021 to yield 4% interest. Find the price of the bond. With Cash flow diagramd is listed in & newspaper at a bid of 105.4844. This quote should be Interpreted to mean: e bond will pay semiannual interest payments of $105.4844 per $1,000 of face value. can 'euyuwt bond at a price equal to 105.4844 percent of face value. sellthat bond at a price equal to 1054844 percent of face value. il pay annual interest payments of $105 4844 per $1000 of face value. s willng to sell that bond for a price equal to 105.4844 percent of par.1. In June 2021, DMRR Bahrain, a car watch manufacturer issued $1.2 billion in convertible bonds. The bonds have a 1.25 percent coupon rate, mature in 2025 and can be converted into DMRR common stock at a conversion price of $359.87. Each bond has a face value of $1,000 and When DMRR issued its convertible bonds, its common stock was trading at S252.54 per share. Answer the following questions and show your workings clearly. a What is the conversion price? b. What is the amount of conversion premium? e How much the owner will receive of DMRR's share in case of conversion. d. Whether the DMRR's bond was in the money or out of money. Explain your answer. For the toolbar, press ALTF10 (PC) or ALT FNF10 (Mad BIUS Paragraph 10pt I. Arial 田出田回田 x X, T. ■E 山 《》 青) 田
- Ma4. 3. A $25000, 11.5% bond with semi-annual coupons redeemable at par March 1, 2025, was purchased on November 15, 2018, to yield 9.5% compounded semi-annually. (a) What was the purchase price of the bond? (b) Find the value of discount or premium. Mention whether the value is premium or discount.A 9.50% coupon Hess Corp bond yields 1.47% and matures on April 21, 2023. A trade settles on July 22, 2018. Coupon interest is paid April 21 and October 21 of each year. What is the interest that the buyer must pay to the seller in addition to the offer price? Round to 2 decimal places. 23.33 is not the answerAn LGU bond offers a yield of 8.5%. What rate should a corporation offer on its bond so investors will invest on them? Assume a tax rate of 25%. Round-off final answer only to two decimal places.
- A convertible bond has a par value of $1,000 and a conversion priceof $25. The stock currently trades for $22 a share. What are thebond’s conversion ratio and conversion value at t= 0? (40, $880)An investor holds a Ford bond with a face value of $5000, a coupon rate of 7.5%, and semiannual payments that matures on 01/15/2029. How much will the investor receive on 01/15/20292 A. $5.000.00 OB. $2.503.75 OC. $5,375.00 OD. $5,187.50On December 31, 2021, Extract Company issued a P40,000,000 5-year of P1 per value each at an issue price of P0.90 per unit. The bond carries a coupon interest of 6% and interest is payable on December 31 each year. Cost of issuing the bond, which included underwriting fees, totalled P2,000,000. The prevailing market rate interest for similar risk class bonds on December 31, 2021 was 10%. Question 1. What is the initial carrying value of the bond on December 31, 2021 assuming Extract Company has the policy to measure the bond at fair value to profit or loss?Question 2. What is the initial carrying value of the bond on December 31, 2021 assuming Extract Company has the policy to measure the bond at amortized cost model?
- Suppose Lion Cage Multinational floated 5000 bonds on January 1, 2020 with a par value of 1500 at stated rate of 16%. Currently, the market is selling these bonds at 18%. The bonds are expected to paid back by December 2030 with an interest paid quarterly effective March 1, 2020. What would be the bond price? Group of answer choices A. 6,870,050 B. No choice given C. 7,584,000 D. 7,485,006 E. 6,708,900Swift Bicycles plans to issue convertible bonds to finance its future growth. Each convertible bond has a face value equal to $1,000 and can be converted into 25 shares of common stock. What is the minimum stock price that would make it beneficial for bondholders to convert their bonds?Bearcat Corporation is offering bonds to the market with a coupon of 15 percent. The bonds make semiannual payments and currently have a yield to maturity of 11.78 percent. The bonds will mature in 14 years and have a face value of $1,000. What should be the current market price of each bond? O $815.67 O $1,215.85 O $652.75 О $1,218.29 O $1,150.67