Ying Import has severai bondisues outstanding, each making semianual interest pa

Question

Ying Import has severai bondisues outstanding, each making semianual interest payments. The bonds are listed in the table below. 8.60% 6.80 8.30 8.80 105.6 94.8 104.4 106.3 6 years 9 years 16.5 years 26 years $26,000,000 46,000,000 51,000,000 66,000,000 Required What is the market value of each of the company's bonds? (Enter your answer in dollars dollars (e.g.- 1,234,567).) , not millions of Market value What is the market value weight of each of the company's bonds? (Round your answers to 4 decimal places (e.g, 32.1616).) Bond What is the YTM of each of the company's bonds? (Input your answers as a percentage decimal places (e.g.. 32.16)-) Bond 19 -" F6 FS FI

Explanation / Answer

Bond Coupon Rate Price Quote Maturity Face Value 1 8.6% 105.6 6 2,60,00,000 2 6.8% 94.8 9 4,60,00,000 3 8.3% 104.4 16.5 5,10,00,000 4 8.8% 106.3 26 6,60,00,000 Consider face value as 100 Market Value of each of company's bonds Bond Market Value 1 1.056(26000000)      2,74,56,000 2 0.948(46000000)      4,36,08,000 3 1.044(51000000)      5,32,44,000 4 1.063(66000000)      7,01,58,000 Market Value of each company's bond Total Market Value 27456000+43608000+53244000+70158000 19,44,66,000 Bond Weight 1 27456000/194466000 14.1187% 2 43608000/194466000 22.4245% 3 53244000/194466000 27.3796% 4 70158000/194466000 36.0773% YTM of each bond YTM = (Coupon + (Face Value-Price)/years to maturity)/((Face Value+Price)/2) Bond Coupon Face Value Price Years to maturity YTM 1 43 100                106 12 ((43+(100-106)/12)/((100+106)/2))*2 82.75% 2 34 100                  95 18 ((34+(100-95)/18)/((100+95)/2))*2 70.41% 3 41.5 100                104 33 ((41.5+(100-104)/33)/((100+104)/2))*2 80.95% 4 44 100                106 52 ((44+(100-106)/52)/((100+106)/2))*2 85.08% Weighted Average YTM of the company's debt YTM = 14.1187*82.75+22.4245*70.41+27.3796*80.95+36.0773*85.08 80.33% After tax cost of debt 80.33(1-30) 56.23%

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