A firm raises capital by selling $35,000 worth of debt with flotation costs equal to 3% of its par value. If the debt matures in 15 years and has an annual coupon interest rate of 11%, what is the bond's YTM?
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A firm raises capital by selling $35,000 worth of debt with flotation costs equal to 3% of its par value. If the debt matures in 15 years and has an annual coupon interest rate of 11%, what is the bond's YTM?
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- A firm raises capital by selling $30,000 worth of debt with flotation costs equal to 2% of its par value. If the debt matures in 15 years and has an annual coupon interest rate of 7%, what is the bond's YTM?A firm raises capital by selling $18,000 worth of debt with flotation costs equal to 3% of its par value. If the debt matures in 10 years and has an annual coupon interest rate of 10%, what is the bond's YTM? (Round to two decimal places.)A firm raises capital by selling $30,000 worth of debt with flotation costs equal to 1% of its par value. If the debt matures in 10 years and has an annual coupon interest rate of 12%. what is the bond's YTM? The bond's YTM is%. (Round to two decimal places)
- In order to calculate a WACC, you first must know the firm's cost of debt and equity. For debt, a firm can issue new bonds with a 4.05% coupon rate and a maturity of 25 years. Interest is paid semi-annually. The market price of the new issue would be $1,146.01 less a 4% of par flotation cost. The face value of the bond, payable at maturity, is $1,000. What is the before-tax cost of debt for this firm (please respond with to the basis point, but without the % sign - meaning if you calculate 3.7569456%, then enter 3.76.)?Suppose a company issues a bond with a par value of €1,000, 5 years to maturity, and a coupon rate of 8.5 percent paid annually. If the yield to maturity is 7.5 percent, what is the current price of the bond?Your company wants to raise $8.0 million by issuing 30-year zero-coupon bonds. If the yield to maturity on the bonds will be 5% (annual compounded APR), what total face value amount of bonds must you issue?
- What is the price of a five-year corporate bond that has a face value of $1,000 and pays an annual coupon of 9%, if the yield on similar bonds is currently 10% per annum?A firm raises capital by selling $10,000 worth of debt with flotation costs equal to 2% of its par value. If the debt matures in 10 years and has an annual coupon interest rate of 11%, what is the bond's YTM? Question content area bottom Part 1 The bond's YTM is enter your response here%. (Round to two decimal places.)A) A bank invests $15 million in a coupon bond. The coupon bond pays a coupon of 4% per year, paid semi-annually and has 2 years to maturity. If the current yield-to-maturity is 3.5% semi-annually, what is the price of the bond? B) Recalculate the price of the bond if, a year later, the yield-to-maturity surged by 300 basis points C) What is the holding period return recorded on the bond position over the past year?
- A bond issued by a Company pays 5.25% coupon once a year. If the bond matures in 15 years, and trades for $1,038.75 today, what is the holding period return, in other words, the yield to maturity (YTM) of the bond?What is the value of a bond that matures in 5 years, has an annual coupon payment of OMR 110, and a par value of OMR 2,000? Assume a required rate of return of 9%.Company B has a bond outstanding that pays a 8% coupon. The interest is paid semi-annually, and the bond matures in 10 years. The company B’s bond be selling at $980? What is its current yield? What is it capital gain or loss yield, if the bond can be sold at $990 in a year?