1. Company B had issued 10-year bonds a year ago at the coupon rate 6%. The bond makes annual payments. The yield to maturity (YTM) of these bonds is 5%. The face value of the bond is $1000.Calculate the current bond price.
2. During 2017, company XYZ had sales 263658; costs 142213; depreciation expense 36358; interest expense 11698; tax rate 35 percent.Given this information what is company XYZ net income.
3. Company B has a second debt issue on the market, a zero coupon bond with 2.7 years left to maturity. The yield to maturity (YTM) of these bonds is 8 %. The face value of the bond is $1000. Calculate the current bond price.
1.
Face Value ($) | 1000 |
Time to maturity (years) | 10 |
Coupon rate | 6% |
YTM | 5% |
Bond price ($) | 1077.22 |
2.
Sales | 263658 |
Costs | 142213 |
EBITDA | 121445 |
Depreciation | 36358 |
EBIT | 85087 |
Interest expense | 11698 |
PBT | 73389 |
Tax | 25686 |
Net Income | 47703 |
3.
ZERO COUPON BOND | |
Face Value ($) | 1000 |
Time to maturity (years) | 2.7 |
YTM | 8% |
Bond price ($) | 812.37 |
1. Company B had issued 10-year bonds a year ago at the coupon rate 6%. The...
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