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Bond yields
One year ago Clark Company issued a 10-year, 13% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,065, and it now sells for $1,270.
A) What is the bond's nominal yield to maturity? Round your answer to two decimal places.
B) What is the bond's nominal yield to call? Round your answer to two decimal places.
C) What is the current yield? (Hint: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.) Round your answer to two decimal places.
D) What is the expected capital gains (or loss) yield for the coming year? Round your answer to two decimal places.
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A municipal bond is priced at par and has a coupon of 1.5% for five years. The corporate bond is also at par with five years to maturity, but carries 2.55% coupon. Sam pays taxes at the 35% level (combined and federal). Calculate the appropriate tax-..
weekly tasks or assignments individual or group projects will be due by monday and late submissions will be assigned a
Beach & Company reported net income of $40 million for last year. Depreciation expense totaled $18 million and capital expenditures came to $8 million. Free cash flow is expected to grow at a rate of 5% for the foreseeable future. What is the current..
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