10. Calculate the YTM on a bond with the following characteristics: (a) Price: $
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Question
10. Calculate the YTM on a bond with the following characteristics: (a) Price: $1,205, (b) Coupon: $65.32, and (c) NPER:10.
11. Calculate Company A’s weighted average cost of debt, given the following information: (a) Tax Rate: 22%, (b) Average Price of Outstanding Bonds: $1,132.00, (c) Coupon Rate: 5.6%, (d) NPER: 15, (e) Debt: $25,000,000, (f) Equity: $22,000,000, and (g) Preferred Stock: $3,000,000.
12. Calculate Company B’s weighted average cost of equity, given the following information: (a) Dividend: $2.69, (b) Growth Rate: 5.3% (c) Price: $26.35, (d) Debt: $12,000,000, (e) Equity: $10,000,000, and (f) Preferred Stock: $1,000,000.
Explanation / Answer
10)
Face value (FV) $ 1,000.00 Coupon rate 6.53% Number of compounding periods per year 1 Interest per period (PMT) 65.32 Bond price (PV) $ (1,205.00) Number of years to maturity 10 Number of compounding periods till maturity (N) 10 Bond Yield to maturity RATE(NPER,PMT,PV,FV) Bond Yield to maturity 4.00%Related Questions
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