Compute yield to call for the fgh company bond maturing

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Reference no: EM131353290

1. Compute the yield to call for the FGH Company bond maturing in 10 years (7 years coupon rate and a face value of $1,000) with the call provision of "After 7 and 115" and a market price of 995.

2. If the RTY Corp. follows CAPM and has a beta of 2.0, and the market ans risk-free rate of return are 14 and 8 percent, respectively. Obtain the cost of the equity capital for the RTY Corporation.

Reference no: EM131353290

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