What is your after-tax interest on this bond

Assignment Help Financial Management
Reference no: EM13807442

A corporate bond pays 11% percent interest. You are in the 30 percent tax bracket. What is your after-tax interest on this bond?

Reference no: EM13807442

Questions Cloud

How much would you have to invest today to receive : How much would you have to invest today to receive? a. $6,900 each year for 19 years at 9 percent?
Write essay about the article the fight against censorship : Write an essay about the article "The Fight Against Censorship".
Culturally relevant interpersonal skills : Culturally relevant interpersonal skills This section must address: Your ability, based on life experience, to relate interpersonally to individuals from different cultural contexts (e.g. age, disability, ethnicity, gender, religion, sexual orientati..
Bond issue-what is the yield to maturity : Big Rapids Homes has a bond issue outstanding that pays $60 annual coupon paid semi-annually and matures in 30 years. The bonds have a par value of $1,000 and a quoted market price of 95.5. What is the yield to maturity?
What is your after-tax interest on this bond : A corporate bond pays 11% percent interest. You are in the 30 percent tax bracket. What is your after-tax interest on this bond?
Place equal year-end deposits in a savings account : You need to accumulate $109,651 for your son's education. You have decided to place equal year-end deposits in a savings account for the next 14 years. The savings account pays 9.87 percent per year, compounded annually. How much will each annual pay..
A researcher in animal behavior was interested increasing : 6. A researcher in animal behavior was interested increasing veterinarian care for dogs. He was particularly interested in the effect of the time spent in the waiting room of a vet's office on the dog's heart rate when first taken in the examination ..
Critical issues stated in the cases : 1. Identify the business problems of each of the cases. 2. Rank-order the critical issues stated in the cases
What is the value of wranglers equity : The Wrangler Co. has expected EBIT = $9,250, debt with a face and market value of $14,000 paying a 9% annual coupon, and an unlevered cost of capital of 12%. If the tax rate is 39%, what is the value of Wrangler's equity?

Reviews

Write a Review

Financial Management Questions & Answers

  For your final paper you will choose one of the health care

the final paper 8-10 pages excluding title and reference pages should demonstrate understanding of the reading

  Mutual fund at the beginning of the year

You invested $105,000 in a mutual fund at the beginning of the year when the NAV was $48.63. At the end of the year the fund paid $.43 in short-term distributions and $.60 in long-term distributions. If the NAV of the fund at the end of the year was ..

  What is the current price of bond

Black Water Corp. just issued zero-coupon bonds with a par value of $1,000. THe bond has a maturity of 25 years and a yield to maturity of 8.29 percent, compounded semi-annually. What is the current price of bond?

  1 puckett products is planning for 5 million in capital

1. puckett products is planning for 5 million in capital expenditures next year. pucketts target capital structure

  Review the pharmacarecompcare scenario in assignment to

legal and ethical considerations in marketing product safety and intellectual propertyreview the pharmacarecompcare

  Suppose an investment offers to quadruple

Suppose an investment offers to quadruple your money in 12 months (don’t believe it). What rate of return per quarter are you being offered? (Round your answer to 2 decimal places. (e.g., 32.16))

  What should be the hedge ratio

What are its intrinsic values at stock prices of $45 and $38, respectively, and what should be the hedge ratio and what should be the value of the hedged portfolio at expiration

  What is the maximum price-willing to pay for this bond

Assume that you wish to purchase a 17-year bond that has a maturity value of $1,000 and a coupon interest rate of 7%, paid semi annually. If you require a 8.74% rate of return on this investment (YTM), what is the maximum price that you should be wil..

  The flexible benefits account

Rosa’s employer has instituted a flexible benefits program. Rosa will use the plan to pay for her daughter’s dental expenses and other medical expenses that are not covered by health insurance. Rosa is in the 28% marginal tax bracket and estimates th..

  What is the expected return on the market

The stock of Alpha Company has an expected return of 16.25% and a beta of 1.35, and Gamma Company stock has an expected return of 10.50% and a beta of X. The beta of a portfolio P is 1.05. The portfolio P consists of 40% of the investment in Alpha an..

  Statements about the payback method

Which of the following statements about the "payback method" is true?

  What is the rate of return on total invested-retirement plan

A publicly traded consulting engineering firm has a retirement plan wherein the company will match an employee’s stock purchases up to $ 5,000 per year, provided the employee has been with the firm for at least 10 years. If an employee hired 10 years..

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