Current bond yield before acquisition = 65/1037.19 = | 6.27% |
Current bond yield after acquisition: | |
After acquisition the bond yield changes to 7.3%. | |
The bond price after acquisition = 1000/1.0365^20+32.50*(1.0365^20-1)/(0.0365*1.0365^20) = | $ 943.91 |
Current bond yield after acquisition = 65/943.91 = | 6.89% |
Land,eToys is a profitable, medium-sized, retail company. Several years ago, it issued a 6.5% coupon bond,...
Land’o’Toys is a profitable, medium-sized, retail company. Several years ago, it issued a 6.5% coupon bond, which pays interest semi-annually. The bond has a par value of $1,000 and will mature in ten years. It is currently priced in the market as $1,037.19. The average yields to maturity for 10-year corporate bonds are reported in the following table by bond rating: Bond Rating Yield (%) Bond Rating Yield (%) AAA 5.4 AA 5.7 A 6.0 BBB 6.5 BB 7.3 B...
A 1k face value corparate bond with a 6.5% coupon ( paid semianually) has 15 years left to mature. It has had a credit rating of BBB and a yeild to maturity of 7.2%. The firm has recently gotten into some trouble and th ratying agency is downgrading the bonds to BB. the new appropriate discount rate will be 8.5%. What will be the change in the bonds price in dollars and percentge terms? Using excel formula please.
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...