Assume Venture Healthcare sold bonds that have ten year maturity Custom Essay

[meteor_slideshow slideshow=”hp1″]

Assume Venture Healthcare sold bonds that have ten year maturity, a 12 percent coupon rate with annual payments, and a $1,000 par value. a. suppose that two years after the bonds were issued, the required interest rate fell to 7 percent. What would be the bonds value? b. Suppose that two years after the bonds were issued, the required interest rate rose to 13 percent. What would be bonds value? c. What would be the value of the bonds three years after issue in each scenario above, assuming that interest rate stayed steady at either 7 percent or 13 percent. Minneapolis Health System has bonds outstanding that have four years remaining to maturity, a coupon interest rate of 9 percent paid annually, and a $ 1,000 per value. a. What is the yield to maturity on the issue if the current market price is $ 829? b. If the current market price is $ 1,104? c. Would you be willing to buy one of those bonds for $829 if you required a 12 percent rate of return on the issue? Explain your answer. Six years ago, Bradford Community Hospital issues 20-year municipal bonds with a 7 percent annual coupon rate. The bonds were called today for a $70 call premium- that is, bondholders received $ 1,100. The bond has a call provision that allows Regal to call the bond in four years at a call price of $. 1,060. a. What is the bond’s yield to maturity? b. What is the bond’s yield to call?

[meteor_slideshow slideshow=”hp4″]

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more