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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

# 5000 compounded annually at 6 percent for 5 years?

7,093 * * * * * No, that is for 6 years. For 5 years it is 5000*(1.06)5 = 6691.13

# Percy Motors has a target capital structure of 40 percent debt and 60 percent common equity with no preferred stock The yield to maturity on the company's outstanding bonds is 9 percent and its tax?

i think your question is not complete at all...in my text book of finance it say the tax 40%, i got same question about Percy motors Percy Motors has a target capital struct…ure of 40 percent debt and 60 percent common equity with no preferred stock The yield to maturity on the company's outstanding bonds is 9 percent and its tax rate is 40%. Percy's CFO estimates that the company's wacc is 9.96%what is the Percy cost of common equity? -the answer-we know that :capital structure of 40 percent debt and 60 percent common equity with no preferred stock The yield to maturity on the company's outstanding bond is 9%the tax 40%and wacc is 9.96% wd= 40%wc= 60%rd=9% kd= rd(1-T) = 9 (1-0.4) = 5.4% WACC = Wd.Kd+ Wp.Kp+ Wc.Kc0.0996= 0.4 x 0.054+0 x 0 +0.6 x Kc0.0996 = 0.0216 + 0.6Kc0.0996-0.0216 = 0.6Kc0.13 = KcKc= 13% so....the Percy motors of common equity is 13%

# Find the present value of 1 a single payment of 24000 at 6 percent for 12 years 2 12 annual payments of 2000 at 6 percent 3 a single payment of 5000 at 9 percent for five years and?

what is present value of a single payment of 24,000 at 6 percent for 12 years

# 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%.

# Cutler Co issued 11-year bonds a year ago at a coupon rate of 7.8 percent The bonds make semiannual payments If the YTM on these bonds is 8.6 percent what is the current bond price?

bond price= 78/2[(1-(1+0.086/2)-11/2)/(0.086/2)]+ 1000/(1+0.086)11/2=

# Will a bonds yield to maturity increase or decrease if the bond is downgraded by the rating agencies?

Changing of rating, in and of itself, will not affect the yield, but more generally, a more negative market view will see the yield rise and the price fall.

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In Shopping

# Is the coupon rate or yield rate paid on a bond?

Coupon rate

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In Banking

# A bank account yields 7 percent interest compounded annually If you deposit 1000 in the account what will the account balance be after five years?

Per annum compound interest formula: fv = pv(1+r)^t Where: fv = future value pv = present (initial) value r = interest rate t = time period Thus, fv = …1000*(1+0.07)^5 = 1000*1.4025517307 = $1402.55

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In Economics

# A 1000 par value 12-year bond with a 9 percent coupon rate recently sold for 980 What is the yield maturity rate?

9.28

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# Why do savings bonds sell for less than their face value?

Savings Binds have to mature for years before they are at their full value. Once they have matured you can either cash them in for their face value, or save them and allow… them to collect interest.