if an 5 year annual bond with 6% coupon rate, currently priced at $988 and par...

if an 5 year annual bond with 6% coupon rate, currently priced at $988 and par value $1000. what is the cost of debt before tax? if the tax rate is 30%, how much is the after tax cost of debt

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jeff jeffy answered 2 years ago

For a 3 year annual bond, currently priced at $78, par value $100, with coupon rate...

For a 3 year annual bond, currently priced at $78, par value $100, with coupon rate 3%. tax rate by 30%. How much is the cost of debt after tax? Remember to keep at least 4 decimals.

A $1,000 par, 6& coupon bond with 8 years to maturity is currently priced at $1,150.00....

A $1,000 par, 6& coupon bond with 8 years to maturity is currently priced at $1,150.00. What is the approximate yield to maturity? a. 4.01% b. 3.88% c. 3.79% d. 3.52%

A 10-Year maturity bond making annual coupon payments with a coupon rate of 5% and currently...

A 10-Year maturity bond making annual coupon payments with a coupon rate of 5% and currently selling at a yield to maturity of 4% has a convexity of 145.4. Compute the modified duration of the bond. Based on the information above, compute the approximated new price using the Duration & Convexity adjustment if the yield to maturity increases by 75 basis points. What is the percentage error?

An annual payment bond with a $1,000 par has a 5% quoted coupon rate, 6% promised...

An annual payment bond with a $1,000 par has a 5% quoted coupon rate, 6% promised YTM , and 6 years to maturity. What is the bond's duration and modified duration?

You invest in a 5-year bond (par=$1,000) with a coupon rate of 6%. The interest is...

You invest in a 5-year bond (par=$1,000) with a coupon rate of 6%. The interest is paid annually, and its YTM is 4%. If you sell the bond one year later, what is your holding period return? A. 4.0% B. 4.5% C. 5.1% D. 7.6% You are evaluating a corporate bond issued by National Fishing League (NFL). The NFL bond is a 4-year bond with a par value of $1 million. Its interest (coupon) payments are based on the following...

Bond A: 10-year annual bond, price $1010, coupon rate 6% par $1000 bond B: 10-year semi-annual...

Bond A: 10-year annual bond, price $1010, coupon rate 6% par $1000 bond B: 10-year semi-annual bond, price $1010, coupon rate 6%, par $1000 Does bond A has a higher cost of debt than bond B?

A bond with a par value of $1,000 has a 6% coupon rate with semi-annual coupon...

A bond with a par value of $1,000 has a 6% coupon rate with semi-annual coupon payments made on July 1 and January 1. If the bond changes hands on November 1, which of the following is true with respect to accrued interest? The buyer will pay the seller $20 of accrued interest The seller will pay the buyer $20 of accrued interest The buyer will pay the seller $10 of accrued interest The seller will pay the buyer $10...

Analyze the 20-year, 8% coupon rate (annual payment), $1,000 par value bond. The bond currently sells...

Analyze the 20-year, 8% coupon rate (annual payment), $1,000 par value bond. The bond currently sells for $1,318. What’s the bond’s current yield, and capital gain yield? 6.07%, 0.71% 6.07%, -0.71% 8%, 1.43% 8%, -1.43%

A two-year bond with par value $1,000 making annual coupon payments of $102 is priced at...

A two-year bond with par value $1,000 making annual coupon payments of $102 is priced at $1,000. . What is the yield to maturity of the bond? (Round your answer to 1 decimal place.) Yield to maturity % b. What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 8.2%, (b) 10.2%, (c) 12.2%?(Do not round intermediate calculations.Round your answers to 2 decimal places.) Interest Rate Realized YTM 8.2...

eddie bauer’s 5 year annual coupon bond is priced at $984.56.The bond has a $1000...

eddie bauer’s 5 year annual coupon bond is priced at $984.56. The bond has a $1000 face value and a yield to maturity of 6.5 percent. What is the coupon rate?6.74%6.34%2.50%3.17%

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