Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.
DDDDDDDDDD (3 of 10) XYZ bonds have a 7% coupon rate paid quarterly. The par value...
Instructions 3 4 5 6 7 8 9 10 (3 of 10) XYZ bonds have a 7% coupon rate paid quarterly. The par value is $1,000 and the bonds mature in 18 years. If the bonds currently sell for $874, what is the pre-tax cost of debt? 2.64% 8.36% 8.96% 2.44%
DIQDODOM (9 of 10) XYZ bonds sell for $900. They have a $1,000 par value, 8% coupon rate with semiannual coupons, and 8 years to maturity, What is the pre-tax cost of debt? 9.83% 5.14% 4.92% 5.58% SKIP QUESTION IAM FINISHED/SUBMIT FOR GRADE
DDDDDD (8 of 10) XYZ Co. issues $1,000 par value, 5.6% annual coupon bonds, with 15 years to maturity. The company sells the bonds for $655. Find the after-tax cost of debt assuming a tax rate of 35% 3.55% 6.62% 6.20% 4.30%
Bonds of Zello Corporation with a par value of $1,000 sell for $1,080, mature in 18 years, and have a 7% annual coupon rate paid annually, what is the yield to maturity? what is the current yield? what is the capital gains (loss) yield? please show step by step solution.for full credit, Not excel workings. Thank you!!!
A firm has $1,000 par value bonds currently selling for $975. The bonds have a coupon rate of 11% and are paying interest semiannually. The bonds are due to reach maturity in 15 years. If the firm's tax rate is 30%, what cost of debt should be used in arriving at the firm's weighted-average cost of capital? Select one: A. 7.95% B. 6.16% C. 8.95% D. 10.16%
5a FYI bonds have a par value of $1,000. The bonds pay an 8% annual coupon and will mature in 11 years. i) Calculate the price if the yield to maturity on the bonds is 7%, 8% and 9%, respectively. ii) What is the current yield on these bonds if the YTM on the bonds is 7%, 8% and 9%, respectively. Hint, you can only calculate current yield after you have determined the intrinsic value (price) of the bonds. iii)...
A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 11.1 percent that is paid semiannually. The bond is currently selling for a price of $1,126 and will mature in 10 years. The firm's tax rate is 34 percent. The after tax cost of debt from the firm is ____%
(Bond valuation) Hamilton, Inc. bonds have a coupon rate of 11 percent. The interest is paid semiannually, and the bonds mature in 7 years. Their par value is $1,000. If your required rate of return is 15 percent, what is the value of the bond? What is the value if the interest is paid annually?
2). Bonds of Zello Corporation with a par value of $1,000 sell for $1,080, mature in 18 years, and have a 7% annual coupon rate paid annually, what is the yield to maturity? what is the current yield? what is the capital gains (loss) yield?
Lourdes Corporation's 10% coupon rate, semiannual payment, $1,000 par value bonds, which mature in 10 years, are callable 4 years from today at $1,075. They sell at a price of $1,174.91, and the yield curve is flat. Assume that interest rates are expected to remain at their current level. What is the best estimate of these bonds' remaining life? Round your answer to the nearest whole number. years If Lourdes plans to raise additional capital and wants to use debt...