hat will be the price of these bonds if they receive either an A or a AA​ rating?

Global Products plans to issue long-term bonds to raise funds to finance its growth. The company has existing bonds that are similar to the bonds it expects to issue. The existing bonds have a face value of $1000, mature in 10 years, pay $60 interest coupon annually, and are currently selling for $1077 each. (Therefore, the current YTM on the bonds is 5 percent.) Assume that Global will issue the new bonds at an interest rate cost of 5 percent based on the current YTM on its existing bonds. Global's marginal tax rate is 40%. What is the after-tax cost of debt?

cullumber, inc has a bond issue maturing in seven years that is paying a coupon rate of 7.5 percent (semiannual payments). Management wants to retire a portion of the issue by buying the securities in the open market. if it can refinance at 6 percent, how much will cullumber pay to buy back its current outstanding bonds? Assume face value is $1000.

(Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in 15 years with an annual coupon rate of 8 percent. Their par value will be $1,000, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds and, if it does, the yield to maturity on similar AA bonds is 9 percent. However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A rating, the yield to maturity on similar A bonds is 10 percent. What will be the price of these bonds if they receive either an A or a AA rating? COUE a. The price of the Pybus bonds if they receive a AA rating will be $ 918.56. (Round to the nearest cent) b. The price of the Pybus bonds if they receive an A rating will be $ (Round to the nearest cent.)

To make its bond offering attractive to investors, Creamy Crisp is attaching warrants. The bonds will have a 30-year maturity and semi-annual interest payments. Each bond will come with 15 warrants that give the holder the right to purchase one share of stock per warrant. The investment bankers estimate that each warrant will have a value of $10.00. A similar straight-debt issue would require a 9% per year yield. What annualized coupon rate should be set on the bonds-with-warrants so that the package would sell for $1,000? 7.64% per year O 3.77% per year O 3.58% per year O 7.55% per year O 8.42% per year 0730 4

Bonaqua Alison Corporation Limited is planning to issue 10-year bonds with a face value of $1,000.  The current market rate for similar bonds is 3.5%.  Assume that coupon payments will be semi-annual.  The company is trying to decide between issuing a 2.8% coupon bond or a zero coupon bond.  The company needs to raise $2.5 million. a.     What will be the price of the 2.8% coupon bonds?                    b.     How many coupon bonds would have to be issued?                 c.     Is the bond selling at a premium and why?                                d.     What will be the price of the zero coupon bonds?

(Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in 20 years with an annual coupon rate of 11 percent. Their par value will be $1,000, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds and, if it does, the yield to maturity on similar AA bonds is 9.5 percent. However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A rating, the yield to maturity on similar A bonds is 10.5 percent. What will be the price of these bonds if they receive either an A or a AA rating? a. The price of the Pybus bonds if they receive a AA rating will be $ (Round to the nearest cent)

(Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in 24 years with an annual coupon rate of 9 percent. Their par value will be $1,000, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds and, if it does, the yield to maturity on similar AA bonds is 12 percent. However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A rating, the yield to maturity on similar A bonds is 13 percent. What will be the price of these bonds if they receive either an A or a AA rating? a. The price of the Pybus bonds if they receive a AA rating will be $ (Round to the nearest cent.)

​(Related to Checkpoint​ 9.3)  ​(Bond valuation)  ​Pybus, Inc. is considering issuing bonds that will mature in 25 years with an annual coupon rate of 8 percent. Their par value will be ​$1,000​, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds​ and, if it​ does, the yield to maturity on similar AA bonds is 9.5 percent. ​ However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A​ rating, the yield to maturity on similar A bonds is 10.5 percent. What will be the price of these bonds if they receive either an A or a AA​ rating?       Question content area bottom Part 1 a. The price of the Pybus bonds if they receive a AA rating will be ​$enter your response here. ​ (Round to the nearest​ cent.)

Orange Ltd is a AAA credit rating company and plans to raise new capital for its new project. The company will use both debt and equity instruments to fund the new project.  Orange Ltd will issue 100 new units, 10-year bonds, each bond with a face value of $1000. Each bond will pay a 10% per annum coupon to be paid semi-annually. Currently each bond can be purchased at a price of $950. Previously, Orange Ltd had never issue bonds. Orange Ltd will issue 100 new units of ordinary shares to add to the current 900 units. The current share has a price of $30 each with last year’s dividend at $1.50 per share. The growth rate for earnings and dividends is estimated to be 10% per annum. Orange Ltd will issue 200 new units of preference shares is currently selling at $45 per share to add to the current 800 shares. The preference shares carry a yearly dividend of $4.00 per share. The flotation costs are 1% of the selling price for the preference shares.  The relevant corporate tax rate is 30%.…