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Given: Bond Face or Par Value: $1,000 Current Market Price: $995.34 Time to Maturity: 11 years Coupon: $30 per year, paid semiannually Bond is callable in five years at $1,030
a. What is the bond’s coupon rate?
b. What is the bond’s current yield?
c. What is the bond’s yield to maturity? (Use financial calculator to solve, list all keystrokes)
d. What is the bond’s yield to call? (Use financial calculator to solve, list all keystrokes)
Woidtke Manufacturing's stock currently sells for $32 a share. The stock just paid a dividend of $2.25 a share (i.e., D0 = $2.25), and the dividend is expected to grow forever at a constant rate of 4% a year. What stock price is expected 1 year from ..
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Suppose that the treasurer of IBM has an extra cash reserve of $ 100,000,000 to invest for six months. The six- month interest rate is 6 percent per annum in the United States and 5 percent per annum in France.
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The McGraw Distributors has a cost of equity of 14.4 percent and a pre-tax cost of debt of 8.6 percent. The firm's target weighted average cost of capital is 11.6 percent and its tax rate is 37.7 percent. What is the firm's target debt-equity ratio?
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Consider the following capital market: a risk-free asset yielding 0.75% per year and a mutual fund consisting of 70% stocks and 30% bonds. The expected return on stocks is 10.75% per year and the expected return on bonds is 3.25% per year. The standa..
Kay Kinder has borrowed $500,000 at a nominal annual rate with monthly compounding of 6.50% to start a new company. The first payment on the loan will be at the end of year 1. In what year will the loan balance go to zero?
TVM. Recently, you purchased a house with a market value of $500,000. The loan terms include a 20% down payment, an annual interest rate of 7% and a term of 30 years. Calculate your monthly mortgage payment, assuming that payments are made at the end..
You own 200 shares of Loner, Inc. stock. The company has stated that it plans on issuing a dividend of $.20 a share one year from today and then issuing a final liquidating dividend of $1.60 a share two years from today. Your required rate of return ..
"Family Dispute." When Trudy and Mark married, they both had children from previous marriages. After their marriage, Trudy and Mark purchased a home together as tenants by the entirety and lived there for many years. Mark died when he was 93 and Trud..
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