Business, 23.06.2020 19:01 zahraalshagawa02
Lourdes Corporation's 12% coupon rate, semiannual payment, $1,000 par value bonds, which mature in 30 years, are callable 6 years from today at $1,075. They sell at a price of $1,314.16, and the yield curve is flat. Assume that interest rates are expected to remain at their current level. What is the best estimate of these bonds' remaining life? Round your answer to two decimal places.
If Lourdes plans to raise additional capital and wants to use debt financing, what coupon rate would it have to set in order to issue new bonds at par?
1. Since interest rates have risen since the bond was first issued, the coupon rate should be set at a rate above the current coupon rate.
2. Since the bonds are selling at a premium, the coupon rate should be set at the going rate, which is the YTC.
3. Since the bonds are selling at a premium, the coupon rate should be set at the going rate, which is the YTM.
4. Since Lourdes wishes to issue new bonds at par value, the coupon rate set should be the same as that on the existing bonds. Since Lourdes wishes to issue new bonds at par value, the coupon rate set should be the same as the current yield on the existing bonds.
Answers: 3
Business, 22.06.2019 00:40
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Business, 22.06.2019 10:30
Describe three scenarios in which you might utilize mathematics to investigate a crime scene, accident scene, or to make decisions involving police practice. be sure to explain how math is used in police as they work through each scenario.
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Business, 22.06.2019 10:50
Explain whether each of the following events increases, decreases, or has no effect on the unemployment rate and the labor-force participation rate.a. after a long search, jon finds a job.b. tyrion, a full-time college student, graduates and is immediately employed.c. after an unsuccessful job search, arya gives up looking and retires.d. daenerys quits her job to become a stay-at-home mom.e. sansa has a birthday, becomes an adult, but has no interest in working.f. jaime has a birthday, becomes an adult, and starts looking for a job.g. cersei dies while enjoying retirement.h. jorah dies working long hours at the office.
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Lourdes Corporation's 12% coupon rate, semiannual payment, $1,000 par value bonds, which mature in 3...
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