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marissa [1.9K]
4 years ago
14

A 4.5 percent corporate coupon bond is callable in five years for a call premium of one year of coupon payments. Assuming a par

value of $1,000, what is the price paid to the bondholder if the issuer calls the bond?
Business
1 answer:
Oduvanchick [21]4 years ago
7 0

Answer:

Price paid to the bondholder $1045

Explanation:

given data:

Par value = $1000

percentage of corporate coupon = 4.5%

call premium is for one year coupon payments

call premium = 1 year coupon

call premium  = 1000 x 4.5% = 45

Price paid to the bondholder = Par value + call premium  

putting all value to get the total price to be paid to bondholder

Price paid to the bondholder = 1000 + 45 = $1045

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Answer:

The pure price per share of common stock issued by ZZZ is $175

Explanation:

According to the given data we have the following:

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To calculate the pure price per share of common stock issued by ZZZ Corporation Pure price of share will be equal to PV of all future dividends.

Therefore, Pure price per share=D1/(r-g)

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Answer:

The Global Economic Crisis

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Hedge funds, banks, and insurance companies helped to cause the subprime mortgage meltdown while regulators looked the other way.  They were given free rein to construct so many complex securities which somehow contributed to the mortgage defaults with financial institutions skimming fees during the securitization processes, and mortgages were made accessible for borrowers who did not meet the income and minimum down payment requirements.

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