The June Bug has a $270,000 bond issue outstanding that matures in 22 years. These bonds have a 7.6 percent yield to maturity. The tax rate is 39 percent. What is the amount of the annual interest tax shield?

(Bond valuation) Flora Co.'s bonds, maturing in 11 years, pay 8 percent interest on a $1,000 face value. However, interest is paid semiannually. If your required rate of return is 14 percent, what is the value of the bond? How would your answer change if the interest were paid annually? SETIS a. If the interest is paid semiannually, the value of the bond is $. (Round to the nearest cent.)

Perpetualcold Refrigeration Company (PRC) can borrow funds at an interest rate of 11.10% for a period of five years. Its marginal federal-plus-state tax rate is 35%. PRC'S after-tax cost of debt is 7.22% (rounded to two decimal places). At the present time, Perpetualcold Refrigeration Company (PRC) has 10-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,495.56 per bond, carry a coupon rate of 10%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 35%. If PRC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note: Round your YTM rate to two decimal place.) 3.06% 2.30% 2.55% 2.04%

On September 30, Stinky Bank issued 10-year bonds at an annual simple interest rate of 4.25%, with interest paid twice a year. Pepe le Pew purchases a $10,000 bond. a. How much interest will Pepe earn every 6 months? b. How much interest will he earn over the 10-year life of the bond?

You pay $8000 for a municipal bond. When it matures after 20 years, you receive $12,500. a. Find the total return. Total Return: _____________ b. Find the annual return. Annual Return: _____________

Sony bonds were issued 8 years ago with a coupon rate of 9%. The bond has 2 years left to maturity and is currently selling for $880. The firm typically falls under a 40% tax rate. Based on this informaiton, what is their after-tax cost of debt? Assume coupon payments are made semiannually.

ECB borrows $1,000,000 USDs by issuing 6-year bonds. ECB's cost of debt is 5%, so it will need to pay $50,000 USDs in interest each year for the next 6 years, and then repay the principal $1,000,000 USD in year 6. ECB's marginal tax rate will remain 35% throughout this period. By how much (in USDs) does the interest tax shield increase the value of ECB? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer.

You pay $5600 for a municipal bond. When it matures after 15 years, you receive $11,000 The total return is ___%.

Suppose a Puerto Rico government bond pays $3,255.80 in 4 years at 4% interest. Calculate the present value of the bond. Determine the value of the bond assuming it will mature in 6 years at 5% interest.

jiminy's cricket farm issued a 30-year, 7 percent semiannual bond 3 years ago. the bond currently sells for 93 percent of its face value. the compnay's tax rate is 22 percent. what is the pretax cost of debt? what is the aftertax cost of debt Please use Excel Formulas