Reference no: EM132846427
Question - Borrower Inc. is currently estimating the value of its bonded indebtedness with the following information:
Real risk-free rate is currently estimated at 4.25%.
The expected inflation premium is at 1.75%.
Considering the current creditworthiness of Borrower Inc., it's credit spread is estimated at:
2.0% for 3-year maturity instruments
3.0% for 4-year maturity instruments
4.0% for 5-year maturity instruments
Borrower Inc. have the following issued bonded indebtedness:
Bond A carries a 5-year tenor with a face value of Php500,000 issued 2 years ago carrying a coupon of 8.0% per annum.
Bond B carries a 5-year tenor with a face value of Php600,000 issued a year ago carrying a coupon of 10.0% per annum.
Bond C carries a 8-year tenor with a face value of Php400,000 issued 3 years ago carrying a coupon of 11.5% per annum.
Required - What is the value of Bond C?
|
Calculate Kelly income assuming he uses variable costing
: Kelly made 400,000 burgers this past year but only sold 375,000 to his customers. Calculate Kelly's income assuming he uses variable costing
|
|
What is the refund from the state income tax
: John claimed $6,350 itemized deductions last year (the standard deduction for a single filer was $6,300). What is the refund from the state income tax
|
|
How long will it take for the account to be paid off
: You will charge 1.09% per month interest on the overdue balance. If the current balance is $14,910, how long will it take for the account to be paid off
|
|
What is the projected benefit obligation at the end
: The interest (discount) rate is 6%. U.S.M. contributed $121,000 to the pension fund at the end of 2021, What is the projected benefit obligation at the end
|
|
What is the value of Bond C
: Bond C carries a 8-year tenor with a face value of Php400,000 issued 3 years ago carrying a coupon of 11.5% per annum. What is the value of Bond C
|
|
What is the incremental income
: The USA Skate Team has approached Element with a special order for 6,000 wheels at a price of $2.75 per wheel. What is the incremental income
|
|
What is the after-tax cost of debt
: The bond currently sells for 94 percent of its face value. The company's tax rate is 35 percent. What is the before-tax cost of debt? What is the after-tax cost
|
|
How much were Coaster operating cash flows
: Coaster Corporation starts in business during 2020. It had the following transactions during 2020: How much were Coaster operating cash flows
|
|
How much taxable compensation would she need to earn
: Assuming Jan wishes to be insured, how much taxable compensation would she need to earn to have an after-tax value equal to exempt health insurance coverage
|