What is the bond annual coupon rate

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1. XYZ Corporation’s outstanding bonds have a $1,000 par value, and they mature in 5 years. Their yield to maturity is 9%, and the current market price is $853.61. The bond pays semi-annual coupon. What is the bond’s annual coupon rate?

2. TIE AND ROIC RATIOS The W.C. Pruett Corp. has $600,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 10%. In addition, it has $600,000 of common stock on its balance sheet. It finances with only debt and common equity, so it has no preferred stock. Its annual sales are $1.92 million, its average tax rate is 40%, and its profit margin is 5%. What are its TIE ratio and its return on invested capital (ROIC)? Round your answers to two decimal places. TIE x ROIC %.

Reference no: EM131977952

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