Purchase Solution

Sure Tea Co: What is the remaining maturity of these bonds?

Not what you're looking for?

Ask Custom Question

Sure Tea Co. has issued 6.3% annual coupon bonds that are now selling at a yield to maturity of 9.2% and current yield of 8.7770%. What is the remaining maturity of these bonds? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Remaining period = years

Purchase this Solution
Solution Summary

This solution discusses the remaining maturity of bonds.

Solution Preview

Please see the attached file for the complete tutorial.

Par $1,000 => Though this was not given in the problem. The common face value of bonds is $1,000
Coupon 6.300%
YTM 9.200%
Current ...

Purchase this Solution
Free BrainMass Quizzes
Operations Management

This quiz tests a student's knowledge about Operations Management

Motivation

This tests some key elements of major motivation theories.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

View More Free Quizzes
Related BrainMass Solutions

  • Present Value

    114058 Present Value: Remaining Maturity of Bonds Sure Tea Co. has issued 9% annual coupon bonds which are now selling at a yield to maturity of 10 percent and current yield of 9.8375%. What is the remaining maturity of these bonds?

  • Current value of bond and share

    What is the current value of these bonds? 2. In 2004, Venus Fly Co. issued a $75 par value preferred stock which pays $5.25 annual dividend.

  • Yield to Maturity (YTM) and Yield to Call (YTC)

    to remain constant, what is the best estimate of the remaining life for Rourke's bonds?

  • Bonds

    What is the current price of the bonds?

  • Yield to Call and Yield to maturity bonds problems.

    What is the yield to maturity at a current market price of (1) $829 or (2) $1,104? b.

  • Mixed Accounting Questions

    If bonds are not sold, then in the books these would be recorded at cost which is the face value and if the bonds are to be held to maturity, there will be no change in the value in the books.

  • Find the Market Price of a Bond

    451599 Jackson Corporation's bonds have 12 years remaining to maturity. Interest is paid annually. What is the current market price of these bonds? Jackson Corporation's bonds have 12 years remaining to maturity.

  • Calculating the price of bonds in various market interest rates

    Explain what would happen to the price of these GM bonds over this 8-year time frame. SHOW ALL WORK.

  • Bonds payable of Solomon Sales Co.

    Required: What is the annual effective interest rate in the market when the bonds were issued? b. Required: What amount of interest expense on these bonds would Solomon Sales Co. report in its 2006 income statement? c.

View More Related Solutions