************************************************************************************* FIN 571 Week 4 Connect Problems
Include the financial statements for the 3 companies as an appendix to the paper . Cite at least 3 scholarly sources . Format the paper consistent with APA guidelines . Click the Assignment Files tab to submit your assignment .
************************************************************************************* FIN 571 Week 4 Connect Problems
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FIN 571 Week 4 Connect Problems Q-1 Even though most corporate bonds in the United States make coupon payments semiannually , bonds issued elsewhere often have annual coupon payments . Suppose a German company issues a bond with a par value of € 1,000 , 20 years to maturity , and a coupon rate of 7 percent paid annually . If the yield to maturity is 8.1 percent , what is the current price of the bond ? ( Do not round intermediate calculations and round your answer to 2 decimal places , e . g ., 32.16 .)
Q-1 ( Set 2 ) Watters Umbrella Corp . issued 30-year bonds 2 years ago at a coupon rate of 7.4 percent . The bonds make semiannual payments . If these bonds currently sell for 83 percent of par value , what is the YTM ? ( Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places , e . g ., 32.16 .) 2 . Microhard has issued a bond with the following characteristics : Par : $ 1,000 Time to maturity : 15 years Coupon rate : 11 percent Semiannual payments Calculate the price of this bond if the YTM is ( Do not round intermediate calculations and round your answers to 2 decimal places , e . g ., 32.16 .):