What is its yield to worst

Assignment Help Finance Basics
Reference no: EM13279951

Our firm is issuing 95 million in straight bonds at par with a coupon rat eof 5.5% and paying atotal fees of 2.5%. What is the net amount of funds that the debt will provide for your firm? The issuing fees are 2,375,000.

What are the total proceeds from the issuance? (round to the nearest dollar)

14-4 Boeing Corp had just issuded a callable (at par) three year, 4.5% coupon bond with semiannual coupon payments. The bond can be called at par in two years or anytime thereafter on a coupon payment date. It has a price of $98.50.

a) What is the bonds's yield to maturity? (enter as % rounded two decimal places)
b) What is its yield to call? (enter as % rounded two decimal places)
c) What is its yield to worst? (enter as % rounded two decimal places)

 

Reference no: EM13279951

Questions Cloud

Determine the final temperature of the puddle : A 0.5530-kg ice cube at -12.40°C is placed inside a chamber of steam at 365.0°C. calculate the final temperature of the puddle
Retirement plan : Your employer contributes $25 a week to your retirement plan. Assume that you work for your employer for another twenty years and that the applicable discount rate is 5%. Given these assumptions, what is this employee benefit worth to you today?
Explain what is the ph of a solution prepared by adding hcl : What is the pH of a solution prepared by adding 66.0 ml of 0.100 M HCl to 43.0 ml of 0.200 M NaOH
Researchers on interpersonal attraction reveals : Researchers on interpersonal attraction reveals that a constellation of factors determine attractiveness. Some factors such as physical appearance and social status may seem rather superficial. Others such as mutual love, and respect, make a lot of s..
What is its yield to worst : Our firm is issuing 95 million in straight bonds at par with a coupon rat eof 5.5% and paying atotal fees of 2.5%. What is the net amount of funds that the debt will provide for your firm? The issuing fees are 2,375,000.
Determine the hoorus temperature : The robot HooRU is lost in space, floating around aimlessly, and radiates heat into the depths of the cosmos at the rate of 13.5 W. What is HooRU\'s temperature
What is the inductance of the toroidal maganitic core : a toroidal maganitic core is wrapped with a coil of wire containing 200 turns. the cross sectional area of the core is 10 cmsq,and the mean length around the core is 20 cm. the material permability is 0.001 hy/m. what is the inductance of the devi..
Draw negative feedback diagram of human endocrine : Draw negative feedback diagram of Human Endocrine System and label it properly! Answer should be upto the pointand it should be handwritten..
What will be the annual depreciation expenses of the process : Studies have shown that employee-training expenses will be $ 125,000. What will be the annual depreciation expenses of the processing line for capital budgeting purposes?

Reviews

Write a Review

Finance Basics Questions & Answers

  Find what is the net present value of the project

what is the net present value (NPV) of the project? What is the internal rate of return? Should the project be purchased?

  What does double taxation of corporate income mean

What does double taxation of corporate income mean? Could income ever be subject to triple taxation? Explain your answer.

  Estimate the cost of capital for the project

You found a comparable company in the same line of business, which is also 100% equity financed. Risk free rate = 3%, market risk premium = 5%, and estimated beta of this comparable company is 0.83

  Reasons for business to file for bankruptcy

There're many reasons why a business may file for bankruptcy. Describe the reasons that would drive a business to file for bankruptcy.

  What is the maximum price per share schultz should pay

What is the maximum price per share Schultz should pay for Arras?

  Computing the value of shareholders equity account

Compute the value of shareholders’ equity account for this firm? How much is net working capital?

  Current national debt also fiscal deficit situation

Elucidate how we got here. Elucidate how do the two parties think we can get out of it also illustrate what you think can be done to remedy the situation.

  What will be tip-top''s cost of equity

1. The Tip-Top Paving Co. wants to be levered at a debt to value ratio of .6. The cost of debt is 11%, the tax rate is 34%, and the cost of equity for an all equity firm is 14%. What will be Tip-Top's cost of equity?

  What coupon rate should the company set

Coccia Co. wants to issue new 16-year bonds for some much-needed expansion projects. The company currently has 8 percent coupon bonds on the market that sell for $1,065, make semiannual payments, and mature in 16 years.

  What is the difference in the future value of savings

What is the difference in the future value of savings between investing in an active fund and a passive fund?

  Computation of the accounting break-even level of output

Computation of the accounting break-even level of output and where the required return on the project is 15 percent

  Develop a strategy for short-term financing needs

Suppose you are the owner of a increasing technology or service company with a healthy cash flow but little in the way of property and equipment.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd