User Account

All Pages

What is the make-whole call premium

Assignment Help Accounting Basics
Reference no: EM132701975

Question - Assume that Kendal Corp. has an outstanding bond issue with a par value of $1,000 and a current market price of $1,024.70 per bond. The bond has nine years remaining and a coupon rate of 6 percent.

Required -

a. Find the current yield to maturity for the Kendal Corp. bond.

b. If the bond trades at a yield spread of 1.58 percent above comparable U.S. Treasury notes, what must the current yield on Treasury notes be?

c. If the Kendal bond has a make-whole call premium of 140 basis points above the U.S. Treasury rate, what is the make-whole call premium?

Reference no: EM132701975

Questions Cloud

What is the benefit to clarify tasks and processes : What is the benefit to Clarify tasks and processes, not just goals and roles in a virtual team work?
Discuss the importance of return on invested capital : Compare and contrast the effects of ROI, given the two measures of invested capital. Discuss the importance of return on invested capital.
Case study on amazon vs walmart : Case study on Amazon vs Walmart: Which Giant Will Dominate E-commerce?
Calculate fred gross wages for two week period : Fred works 48 hours in the first week and 39 in the second vacation pat at 4% will be paid ion each pay cycle. Calculate Fred's gross wages for two week period.
What is the make-whole call premium : If the Kendal bond has a make-whole call premium of 140 basis points above the U.S. Treasury rate, what is the make-whole call premium
Stylistic development into abstraction : Choose one of the following artists for an examination of their stylistic development into abstraction:
Describe tqm and six sigma approaches to quality : Describe TQM and Six Sigma Approaches to quality. What are the key elements of each of the approaches?
Case-wooden on leadership : In the current business world, team projects are commonplace. This assignment will use John Wooden's Pyramid of Success, its different facets
Which contract does goldman prefer and firm t : Which contract does Goldman prefer and Firm T? You have estimated the price of Firm T to be 70mill and this is the IPO price. The daily volatility on IPO data.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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