Corporate rate need to be to invest in coupon bond

Assignment Help Financial Management

Reference no: EM132028866

a. What is the discount yield for a 1 million T- bill with a 136 days until maturity, that cost 996,080

b. A municipal bond with a face value of 1,000 and a coupon of 5.15% is selling for $1023.36 what is the current yield?

c. You purchase the municipal bond in b which has 15 years remaining until maturity what is the YTM?

d. Exactly one year you sell the bond after the yield has dropped by 36 basis points (.35%) what is the sale price? what was the return over the past year

e. If you were in the 40% tax bracket how much in taxes would be paid on the transaction in d? what would the corporate rate need to be to invest in the coupon bond?

f. You own a corporate bond that pays 8% coupon. Coupon is distributed on 2/1/xx and you sell it at par on 10/22/xx what is the dirty price on the sale of the security?

Reference no: EM132028866

Questions Cloud

What discount rate should the firm use for the project : Gnomes R Us is considering a new project. What is the company’s WACC? What discount rate should the firm use for the project?

What will be the firm cash cycle : Assuming that all of LilyMac’s sales are on credit, what will be the firm’s cash cycle?

Annual increase in the price of automobiles : Assuming a 3.2 percent annual increase in the price of automobiles, how much will a new BMW cost you 4 years from now if today's price is $58,500?

Determine the price of polly cracker bond : Determine the price of a Polly Cracker bond.

Corporate rate need to be to invest in coupon bond : If you were in the 40% tax bracket how much in taxes would be paid on the transaction in d? what would the corporate rate need to be to invest in coupon bond?

What is the crossover rate for these two projects : What is the crossover rate for these two projects?

What is the project average accounting return : What is the project’s average accounting return (AAR)? If the cutoff rate is 20%, should the company accept or reject the project?

Complete risk assessment of the firm : Select a stock in the S&P 500 and do a complete risk assessment of the firm using the Porters Five Forces framework.

The average beta of new stocks added to the portfolio : After investing the additional funds, she wants the fund's required return to be 12%. What should be the average beta of the new stocks added to the portfolio?

User Account

All Pages