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In: Finance
A company's 7% coupon rate, semiannual payment, $1,000 par value bond that matures in 25 years...
A company's 7% coupon rate, semiannual payment, $1,000 par value bond that matures in 25 years sells at a price of $563.63. The company's federal-plus-state tax rate is 30%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC? (Hint: Base your answer on the nominal rate.) Round your answer to two decimal places.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
A company's 7% coupon rate, semiannual payment, $1,000 par value bond that matures in 25 years...
A company's 7% coupon rate, semiannual payment, $1,000 par value
bond that matures in 25 years sells at a price of $747.72. The
company's federal-plus-state tax rate is 40%. What is the firm's
after-tax component cost of debt for purposes of calculating the
WACC? (Hint: Base your answer on the nominal rate.) Round
your answer to two decimal places.
A company's 7% coupon rate, semiannual payment, $1,000 par value bond that matures in 25 years...
A company's 7% coupon rate, semiannual payment, $1,000 par value
bond that matures in 25 years sells at a price of $571.84. The
company's federal-plus-state tax rate is 30%. What is the firm's
after-tax component cost of debt for purposes of calculating the
WACC? (Hint: Base your answer on the nominal rate.) Round
your answer to two decimal places.
A company's 7% coupon rate, semiannual payment, $1,000 par value bond that matures in 20 years...
A company's 7% coupon rate, semiannual payment, $1,000 par value
bond that matures in 20 years sells at a price of $574.73. The
company's federal-plus-state tax rate is 30%. What is the firm's
after-tax component cost of debt for purposes of calculating the
WACC? (Hint: Base your answer on the nominal rate.) Round your
answer to two decimal places.
A company's 8% coupon rate, semiannual payment, $1,000 par value bond that matures in 30 years...
A company's 8% coupon rate, semiannual payment, $1,000 par value
bond that matures in 30 years sells at a price of $749.05. The
company's federal-plus-state tax rate is 40%. What is the firm's
after-tax component cost of debt for purposes of calculating the
WACC? (Hint: Base your answer on the nominal
rate.) Round your answer to two decimal places.
what is the answer? %
a companys 7% coupon rate, semiannual payment, is $1000 par value bond that matures in 30...
a companys 7% coupon rate, semiannual payment, is $1000 par
value bond that matures in 30 years sells at a price of $638.11.
the companys federal plus state tax rate is 30%. what is the firms
after tax component cost of debt for purposes of calculating the
WACC
A $1,000 par value bond matures in 8 years. It has a 7% coupon rate, with...
A $1,000 par value bond matures in 8 years. It has a 7% coupon
rate, with semi-annual interest payments. The yield (the rate at
which investors are using to calculate the price of the bond) is
8%. What is the fair market value of the bond?
Bond Yield and After-Tax Cost of Debt A company's 7% coupon rate, semiannual payment, $1,000 par...
Bond Yield and After-Tax Cost of Debt A company's 7% coupon
rate, semiannual payment, $1,000 par value bond that matures in 20
years sells at a price of $676.72. The company's federal-plus-state
tax rate is 40%. What is the firm's after-tax component cost of
debt for purposes of calculating the WACC? (Hint: Base your answer
on the nominal rate.) Round your answer to two decimal places.
%
A semiannual payment bond with a $1,000 par has a 7 percent quoted coupon rate, a...
A semiannual payment bond with a $1,000 par has a 7 percent
quoted coupon rate, a 7 percent promised YTM, and 10 years to
maturity. Find the bond's duration.
A semiannual payment bond with a $1,000 par has a 7 percent quoted coupon rate, a...
A semiannual payment bond with a $1,000 par has a 7 percent
quoted coupon rate, a 7 percent promised YTM, and 10 years to
maturity. Find the bond's duration.
please show in excel
A bond matures in 8 years, Par value = $1,000, and coupon annual interest payment =...
A bond matures in 8 years, Par value =
$1,000, and coupon annual interest payment = $65. Yield to maturity
of this bond is 8.2% (yield, or annual return). What is the bond's
price?
a. $903.04
b. $925.26
c. $948.67
d. $972.84
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