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# The 6 percent annual coupon bonds of Greentree Inc are selling for 1020 have a face value of 1000 and have a yield to maturity of 5.43 percent How many years will it be until these bonds matu?

# The Heuser Company's currently outstanding bonds have a 10 percent coupon and a 12 percent yield to maturity Heuser believes it could issue new bonds at par that would provide a similar yield to matu?

After cost of debt = 12% x (1-0.35) = 7.8%

# If a coupon bond is selling at par does the current yield equal its yield to maturity?

Yield usually refers to yield to maturity. If a bond is trading at par it usually means the yield to maturity is equal to the coupon.

# Do bonds usually sell at their maturity value?

no they sell at their present value

# If you purchase a zero coupon bond today for 225 and it matures at 1000 in 11 years what rate of return will you earn on that bond to the nearest 10th of 1 percent?

Po =I (PVIFA kdn) + M(PVIF kdn) = $225 = $ 1,000 (PVIF) note 1 = 0 since this is a zero coupon bond. (PVIFkd, ) =0.317

# What is the yield to maturity on bonds if its after-tax cost of debt is 10 percent and its tax rate is 35 percent?

The yield would be 15.38%.

# If the Treasury yield curve is downward sloping how would the yield to maturity on a 10 year Treasury coupon bond compare to that on a 1 year Treasury bill?

The yield on a 10-year bond would be less than that on a 1-year bill

# 20 year debt issued a year ago par value coupon rate 8 percent paid annually Today the debt is selling for 1050 The firm's tax bracket is 35 percent what is it after tax cost of debt?

From your query i just got to know that you want the figure of tax percentage on your debt. \n.
\nI think you should concern some financial companies which would provide you… more clear idea regrading your question. Today the companies are emerging with great schemes with low interests and for bad credits.

# Do bonds with quarterly coupons have lower yields than those with semi-annual coupons?

Yields on bonds are independent of the frequency of coupon payment. The most used by professionals yield to worst (maturity or call date) depends only on the perceived r…iskiness of the bond and the supply and demand conditions for the bond.

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# How does the yield to maturity on a bond differ from the coupon yield or current yield?

The rate of return anticipated on a bond if held until the end of its lifetime. YTM is considered a long-term bond yield expressed as an annual rate. The YTM calculation t…akes into account the bond's current market price, par value, coupon interest rate and time to maturity. It is also assumed that all coupon payments are reinvested at the same rate as the bond's current yield. YTM is a complex but accurate calculation of a bond's return that helps investors compare bonds with different maturities and coupons.

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# To help finance a major expansion ABC Inc sold a noncallable bond several years ago that now has 15 years to maturity This bond has a 10.25 percent annual coupon paid semiannually. trading price?

You need to know the current yield of the bond to answer this question. The yield would be a function of the current risk free rate (likely a simlar maturity Treasury security… if ABC issued in US dollars) and the current risk premium or credit spread for ABC.