Amount of Annual Interest = Par Value * Coupon rate
Amount of annual interest rate = $6,200 * 10.1%
Amount of annual interest rate = $626.20
Amount of semi-annual interest = Annual interest/2
Amount of semi-annual interest = $626.20/2 = $313.10
Assume that you purchased a $6,200 EMC bond that pays 10.1 percent interest. What is the...
Curtis invests $650,000 in a city of Athens bond that pays 8.75 percent interest. Alternatively, Curtis could have invested the $650,000 in a bond recently issued by Initech, Inc. that pays 10 percent interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 24 percent. What is Curtis's after-tax rate of return on the city of Athens bond? Multiple Choice 7.07 percent O O ) 8.59 percent 8.75 percent O Ο 7.07 percent...
Assume that you purchase a $4,000 bond issued by Harley-Davidson that pays 6% interest each year, paid every six months. What is the amount of each interest payment? (Round your answer to 2 decimal places.)
Assume that Jose is indifferent between investing in a corporate bond that pays 10 percent interest and a stock with no growth potential that pays an 9.7 percent dividend yield. Assume that the tax rate on dividends is 15 percent. What is Jose's marginal tax rate? (Do not round intermediate computations.) Multiple Choice 32.72 percent 0 2289 percent 1755 percent 1004 percent
A bond with a current yield of 7.41 percent is quoted at 104.122. What is the coupon rate of the bond:? Multiple Choice Ο 772% Ο 733% Ο 7.20% Ο 760% Ο 8239% A bond with 16 years to maturity and a semiannual coupon rate of 5.92 percent has a current yield of 5.59 percent. The bond's par value is $2,000. What is the bond's price? Multiple Choice $1888.51 Ο 5206903 Ο $2.0820 οοο Ο Ο Ο $2.204 150 52...
Curtis invests $825,000 in a city of Athens bond that pays 10.00 percent interest. Alternatively, Curtis could have invested the $825,000 in a bond recently issued by Initech, Inc. that pays 13.00 percent interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 24 percent. How much implicit tax would Curtis pay on the city of Athens bond? Multiple Choice $82,500.0 $9,488 $9,388 Multiple Choice $82,500.0 $9,488 $9,388 $24,750.0 None of the choices...
Curtis invests $450,000 in a city of Athens bond that pays 6.50 percent interest. Alternatively, Curtis could have invested the $450,000 in a bond recently issued by Initech, Inc. that pays 7.75 percent interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 24 percent. If Curtis invested in the Initech, Inc. bonds, what would be his after-tax rate of return from this investment? Multiple Choice 4.37 percent 6.50 percent 650 percent o...
A bond pays a coupon (or interest) rate of 5 percent each year for five years, with a future (face) value of $200. If the bond were sold today, what would be the present value of the bond? Multiple Choice $145 $157 $200 $150
What is the current yield for a $1,000 corporate bond that pays 8.5 percent and has a current market value of $800? (Round your answer to 2 decimal places.) Multiple Choice Ο Ο 10.13% Ο 7.97% Ο Ο 8.60% Ο 10.63% () 8.50%
1. Curtis invests $825,000 in a city of Athens bond that pays 10.25 percent interest. Alternatively, Curtis could have invested the $825,000 in a bond recently issued by Initech, Inc. that pays 13.00 percent interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 24 percent. How much explicit tax would Curtis incur on interest earned on the Initech, Inc. bond? Multiple Choice $81,910 $25,740 $20,295 $63,567.5 None of the choices are correct...
Assume you purchased a bond for $4,592. The bond pays $107 interest every 6 months. You sell the bond after 18 months for $5,000. Calculate the following: a. Income. b. Capital gain (or loss) c. Total return in dollars and as a percentage of the original investment. a. The current income is ound to the nearest dollar.) b. The capital gain (or loss) is sEnter a loss as a negative number and round to the nearest dollar.) c. The total...