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Stiltz Project 2 - Net Ids sgcohen2 kdunla2 mtgust2...

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Part 1: Bonds 1.) Par Value: $1,000.00 N (years) 25 N (2x per year) 50 annual coupon rate 9% annual coupon pmt $90.00 semi annual coupon pmt $45.00 Yield to Maturities Value of the bond 2% $2,371.86 5% $1,567.25 8% $1,107.41 11% $830.68 14% $654.98 17% $537.38 2.) Bond Name Years To Maturity Grease Gougers 2 Burns Power 15 Caterpillar 40 Bond's Price Interest Rate (APR) Grease Gougers Burns Power 2% $1,117.06 $1,774.23 4% $1,076.15 $1,447.93 6% $1,037.17 $1,196.00 8% $1,000.00 $1,000.00 10% $964.54 $846.28 12% $930.70 $724.70 14% $898.38 $627.73 3.) All-Comm Wally World Par value $1,000.00 $1,000.00 Coupon Payment $- $60.00 Net Ids: sgcohen2, kdunla2, mtgust2, rsilver3, snyder4, stiltz1 Section: Thursday 1:00 TA: Sena Durguner Bon
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Years To Maturity (N) 20 20 YTM 7% 7% Today's Price $258.42 $894.06 One Year from Today: Bond Price YTM All-Comm Wally World 5.50% $361.58 $1,058.04 7% $276.51 $896.64 8.50% $212.24 $768.31 Total Rate of Return All-Comm Wally World 5.50% 39.92% 25.05% 7% 7.00% 7.00% 8.50% -17.87% -7.35% 4.) Vandalay Industries SatTV Par Value: $1,000.00 $1,000.00 Coupon rate: 6.80% 6.80% Annual Coupon PMT: $68.00 $68.00 Semi-annual Coupon PMT: $34.00 $34.00 N ( years to maturity): 12 12 N (2x per year) 24 24 Sell for (PV): $890.00 $1,090.00 Yield to Maturity (YTM): 8.262354% 5.751331% Yield to Call (YTC): 13.194143% 5.525129% Which return do you think is more likely for each bond if market in to remain at their current level over the next 3 years? I think the yield to maturity is more likely for the Vandalay Industries bo selling at a discount initially. Also, the YTM is less than the YTC and th looking to make a profit. I think the yield to call is more likely for the Sa is selling at a premium initially and the YTM is greater than the YTC. O company is looking to make the most money, so they would give you th
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Par Value: 1000 annual coupon rate: 8% annual coupon pmt: 80 semi-annual rate: 4%
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