Fresh Fish Food has bonds that mature in 8 years. the bonds have a 2.5% coupon...
Fresh Fish Food has bonds that mature in 8 years. the bonds have a 2.5% coupon rate paid semi-annually. they have a yield to maturity of 6% and a tax bracket of 38%. Flotation costs are 12% of the price. what is the cost of debt?
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Fresh Fish Food has bonds that mature in 8 years. the
bonds have a 2.5% coupon...
2) Southern Bell has issued $1000 par, 4.375% coupon bonds that mature in 6 years. The...
2) Southern Bell has issued $1000 par, 4.375% coupon bonds that mature in 6 years. The coupons on these bonds are paid semi-annually. These bonds are currently trading at a price of $853.75. The bonds are callable in 2 years at a call price of $1000. a) Compute the Yield-to-Maturity (YTM) on the bonds. b) Compute the Yield-to-Call (YTC) on the bonds.
Fashion Wear has bonds outstanding that mature in 11 years, pay interest annually, and have a...
Fashion Wear has bonds outstanding that mature in 11 years, pay interest annually, and have a coupon rate of 6.45 percent. These bonds have a face value of $1,000 and a current market price of $994. What is the company’s pretax cost of debt? What is the company’s aftertax cost of debt if the tax rate is 21 percent? Pretax cost of debt = yield to maturity = 6.53% Aftertax cost of debt: 5.16% Please check the answers and show...
Thayer Corporation's bonds will mature in 10 years. The bonds have a 9% coupon rate with...
Thayer Corporation's bonds will mature in 10 years. The bonds have a 9% coupon rate with interest paid annually. The price of the bonds is $1,100. The bonds are callable in 4 years at a call price of $1,045. What is the bonds' YTM? What is the bonds' yield to call (YTC)?
5a FYI bonds have a par value of $1,000. The bonds pay an 8% annual coupon...
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)...
Renfro Rentals has issued bonds that have an 8% coupon rate, payable semiannually. The bonds mature...
Renfro Rentals has issued bonds that have an 8% coupon rate, payable semiannually. The bonds mature in 14 years, have a face value of $1,000, and a yield to maturity of 10%. What is the price of the bonds?
a. Springfield Nuclear Energy Inc. bonds are currently trading at $1,775.16. The bonds have a face value of $1,000, a coupon rate of 10.5% with coupons paid annually, and they mature in 25 years. W...
a. Springfield Nuclear Energy Inc. bonds are currently trading at $1,775.16. The bonds have a face value of $1,000, a coupon rate of 10.5% with coupons paid annually, and they mature in 25 years. What is the yield to maturity of the bonds? b. Consider an annual coupon bond with a face value of $100,12 years to maturity, and a price of $76. The coupon rate on the bond is 6%. If you can reinvest coupons at a rate of...
In 2010, My Company issued bonds that will mature in 10 years. They have face value...
In 2010, My Company issued bonds that will mature in 10 years. They have face value of $1000 and a coupon rate of 6.0%pa paid semi-annually. Exactly 4 years later the bonds are trading at a price of $1,041. What is the current market yield for these bonds
8. Croft Inc, bonds have a par value of $1,000. The bonds have a 4% coupon...
8. Croft Inc, bonds have a par value of $1,000. The bonds have a 4% coupon rate and will mature in 10 years. Assume the bond is semi-annual a. Calculate the price if the yield to maturity on the bonds is 7, 8, and 9 percent, respectively. b. Explain the impact on price if the required rate of return decreases. c. How does the relationship between the coupon rate and the yield to maturity determine how a bond's price will...
Cost of Debt Jones, Inc has one outstanding bond issue, which has twelve years remaining to...
Cost of Debt Jones, Inc has one outstanding bond issue, which has twelve years remaining to maturity and a coupon rate of 2.325%. Interest payments are made semi-annually, the firm’s tax rate is .35, and the bonds are currently trading at $1,021.00. What is the yield to maturity on the bonds? Ignoring flotation costs, what is the firm’s cost of debt (before tax)? What is its after-tax cost of debt?
Boulder Furniture has bonds outstanding that mature in 13 years, have a 6 percent coupon, and...
Boulder Furniture has bonds outstanding that mature in 13 years, have a 6 percent coupon, and pay interest annually. These bonds have a face value of $1,000 and a current market price of $1,040. What is the company's after tax cost of debt if its tax rate is 32 percent? 2.97 percent 3.24 percent 3.78 percent O 5.56 percent 5.53 percent
2) Southern Bell has issued $1000 par, 4.375% coupon bonds that mature in 6 years. The coupons on these bonds are paid semi-annually. These bonds are currently trading at a price of $853.75. The bonds are callable in 2 years at a call price of $1000. a) Compute the Yield-to-Maturity (YTM) on the bonds. b) Compute the Yield-to-Call (YTC) on the bonds.
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)...
8. Croft Inc, bonds have a par value of $1,000. The bonds have a 4% coupon rate and will mature in 10 years. Assume the bond is semi-annual a. Calculate the price if the yield to maturity on the bonds is 7, 8, and 9 percent, respectively. b. Explain the impact on price if the required rate of return decreases. c. How does the relationship between the coupon rate and the yield to maturity determine how a bond's price will...
Boulder Furniture has bonds outstanding that mature in 13 years, have a 6 percent coupon, and pay interest annually. These bonds have a face value of $1,000 and a current market price of $1,040. What is the company's after tax cost of debt if its tax rate is 32 percent? 2.97 percent 3.24 percent 3.78 percent O 5.56 percent 5.53 percent
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