This paper concentrates on the primary theme of IMEX Global Solutions issued a bond on December 31, 2015 to the public in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 79. For more details and full access to the paper, please refer to the site.
IMEX Global Solutions issued a bond on December 31, 2015 to the public which pays $80 once per year in interest and a $1,000 principal repayment after year 10, and is priced in the open market to reflect a required return of 11.5% to bondholders, or $798. The company’s management has the option of redeeming this bond early for $1,050 plus any accrued interest.As it relates to the IMEX bonds, identify the following:Face value Market value Coupon rateYield to maturity Current yield Call premium Maturity Identify the following general statements concerning bonds as True or False:Bonds provide tax benefits to issuers of bonds. The risk of company insolvency increases when a firm issues bonds.Municipal bonds pay interest that is federally and state tax-free. All else constant, a bond will sell at a discount when its coupon rate is less than its yield to maturity. Decreasing the time to maturity increases the price of a discount bond, all else unchanged. SHOW YOUR CALCULATIONS FOR #13-#20.You have the option of performing calculations manually or with the use a financial calculator or spreadsheet. Either way, you must specify what is being calculated to earn credit: