What must the coupon rate be on the bonds

Assignment Help Financial Management

Reference no: EM13726124

Volbeat Corporation has bonds on the market with 15.5 years to maturity, a YTM of 10.4 percent, and a current price of $944. The bonds make semi-annual payments.

Required:

What must the coupon rate be on the bonds? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16))

Coupon rate %

Reference no: EM13726124

Questions Cloud

Summurize case study-public relations practices : May you help me to summurize one case study in this book: Public Relations Practices, 8th ed, by Center, Jackson, Smith, and Stransberry

Bonds for some much needed expansion projects : Pembroke Co. wants to issue new 20-year bonds for some much needed expansion projects. The company currently has 8 percent coupon bonds on the market that sell for $983, making annual payments, and mature in 20 years. What coupon rate should the comp..

Explain the importance of five pillars elements for muslims : Explain the importance of these elements for Muslims: Qur'an, Five Pillars and Ramadan. Describe significant differences and similarities in how the branches of Islam practice their traditions.

Business plan for transitional housing serving : Business plan for transitional housing serving female victims of domestic violence. The housing will be located in a specific rural community

What must the coupon rate be on the bonds : Volbeat Corporation has bonds on the market with 15.5 years to maturity, a YTM of 10.4 percent, and a current price of $944. The bonds make semi-annual payments.

An investment offers a total return : An investment offers a total return of 14 percent over the coming year. Bill Bernanke thinks the total real return on this investment will be only 8.6 percent.

Capital budgeting is different for multinational operations : Currency exposures are generally more difficult to identify and measure than to hedge. React to this statement. Is it true or false and why. Describe the primary ways to protect against the adverse consequences of political risk. Describe how capital..

What is the cost of equity after recapitalization : O’Connell & Co. expects its EBIT to be $74,000 every year forever. The firm can borrow at 7 percent. O’Connell currently has no debt, and its cost of equity is 12 percent and the tax rate is 35 percent. The company borrows $125,000 and uses the proce..

Observe a spot exchange rate : Suppose you observe a spot exchange rate of $2.00/£. If interest rates are 5% APR in the U.S. and 2% APR in the U.K., what is the no-arbitrage 1-year forward rate?

User Account

All Pages