What is the interest rate on this bond

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Reference no: EM131319228

1. Ajax Corp's sales last year were $430,000, its total operating costs were $362,500, and its interest charges were $12,500. What was the firm's times-interest-earned (TIE) ratio?

A) 5.7

B) 5.4

C) 5.5

D) 5.3

E) 5.6

2. The real risk- free rate is 3.05%, inflation is expected to be 2.85% this year, and the maturity risk premium for a treasury bond in 0.3%. what is the interest rate on this bond?

A) 6.90

B) 6.20

C) 5.90

D) 3.05

E) 5.20

Reference no: EM131319228

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