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MiCa Worldwide that has two bond issues outstanding, “A” and “B.” For bond issue A, there...

MiCa Worldwide that has two bond issues outstanding, “A” and “B.” For bond issue A, there are 10,000 notes, each with a face value of $1,000, an 8 percent annual coupon rate (coupons are paid semi-annually), 10 years to maturity, and a current yield to maturity of 9 percent. For bond issue B, there are 5,000 notes, each with a face value of $1,000, a 6 percent annual coupon rate (coupons are paid semi-annually), 5 years to maturity, currently selling for $958.40 per note.

What should be the current price of each bond in bond issue A?

What is the yield to maturity of each bond in bond issue B?

What is this firm’s total market value of debt?

What is this firm’s cost of debt capital? (Note: Round your final answer to four decimal places.)

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jeff jeffy answered 2 years ago
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