Homework P9-1 (similar to) Question Help ​(Related to Checkpoint​ 9.1) ​(Floating-rate loans) The Bensington Glass Company entered into a loan agreement with the​ firm's bank to finance the​ firm's...

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Homework P9-1 (similar to)  Question Help   ​(Related to Checkpoint​ 9.1)  ​(Floating-rate loans)  The Bensington Glass Company entered into a loan agreement with the​ firm's bank to finance the​ firm's working capital. The loan called for a floating rate that was 28 basis points ​(0.28 ​percent) over an index based on LIBOR. In​ addition, the loan adjusted weekly based on the closing value of the index for the previous week and had a maximum annual rate of 2.22 percent and a minimum of 1.72 percent. Calculate the rate of interest for weeks 2 through 10. Date LIBOR   Week 1 1.99​% Week 2 1.67​% Week 3 1.47​% Week 4 1.37​% Week 5 1.56​% Week 6 1.65​% Week 7 1.74​% Week 8 1.89​% Week 9 1.94​% The rate of interest for week 2 is ​%. ​(Round to two decimal​ places.) P9-3 (similar to)  Question Help   ​(Related to Checkpoint​ 9.3) ​(Bond valuation)  Calculate the value of a bond that matures in 11 years and has a $1,000 par value. The annual coupon interest rate is 15 percent and the​ market's required yield to maturity on a​ comparable-risk bond is 13 percent. The value of the bond is ​$nothing. ​ (Round to the nearest​ cent.) P9-4 (similar to)  Question Help   ​(Related to Checkpoint​ 9.4)  ​(Bond valuation) A bond that matures in 9 years has a ​$1,000 par value. The annual coupon interest rate is 14 percent and the​ market's required yield to maturity on a​ comparable-risk bond is 17 percent. What would be the value of this bond if it paid interest​ annually? What would be the value of this bond if it paid interest​ semiannually? a.  The value of this bond if it paid interest annually would be ​$nothing. ​(Round to the nearest​ cent.) P9-6 (similar to)  Question Help   ​(Related to Checkpoint​ 9.3)  ​(Bond valuation)  ​Pybus, Inc. is considering issuing bonds that will mature in 21 years with an annual coupon rate of 12 percent. Their par value will be ​$1,000​, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds​ and, if it​ does, the yield to maturity on similar AA bonds is 9 percent. ​ However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A​ rating, the yield to maturity on similar A bonds is 10 percent. What will be the price of these bonds if they receive either an A or a AA​ rating? a. The price of the Pybus bonds if they receive a AA rating will be ​$nothing. ​ (Round to the nearest​ cent.) P9-7 (similar to)  Question Help   ​(Related to Checkpoint​ 9.2)  ​(Yield to​ maturity)  The market price is ​$825 for a 9​-year bond ​($1,000 par​ value) that pays 9 percent annual​ interest, but makes interest payments on a semiannual basis ​(4.5 percent​ semiannually). What is the​ bond's yield to​ maturity? The​ bond's yield to maturity is nothing​%. ​ (Round to two decimal​ places.) P9-14 (similar to)  Question Help   ​(Related to Checkpoint​ 9.2)  ​(Yield to​ maturity)  Abner​ Corporation's bonds mature in 25 years and pay 12 percent interest annually. If you purchase the bonds for ​$1,300​, what is your yield to​ maturity? Your yield to maturity on the Abner bonds is nothing​%. ​(Round to two decimal​ places.) P9-23 (similar to)  Question Help   ​(Related to Checkpoint​ 9.6)   ​(Inflation and interest rates​) What would you expect the nominal rate of interest to be if the real rate is 4.5 percent and the expected inflation rate is 6.6 ​percent? The nominal rate of interest would be nothing​%. ​(Round to two decimal​ places.)