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That bond carried a coupon rate of 10.75%. Also assume that today a five year Treasury security yields 3.0%. How much would that 25 year old bond sell for today
Dion Company uses the straight line method of amortization for bond premium or discount.
What are call provisions and sinking fun provisions? Do these provisions make funds more or less risky?
What will the difference, if any, be between this bond's clean and dirty prices today?
Calculate the value of the bond if interest is paid on an annual basis versus a semi-annual basis. Show your work in a step by step calculation.
When the demand for bonds _________ or the supply of bonds _________, interest rate rise.
Based on the following information, you wish to figure out which bond has a greater interest rate risk. (You need to calculate duration and volatility of bonds)
Probability distribution to the price of (and rate of return on) Phoenix stock one year from now:
Calculate the bank discount rate of return (DR) and the YTM-equivalent return for the following money market instruments:
Define and explain the use of the following: (a) long hedge; (b) short hedge; and (c) cross hedge.
Journalize the adjusting and reclassifying entries. Identify the adjustments by number and the reclassifications by letter.
Calculate the after-tax costs of financing with each of the following alternatives.
If treasury bills are currently paying 7 percent and the inflation rate is 3.8, what is the approximate real estate of interest? The exact real estate?
A 10-year bond pays an annual coupon, its YTM is 8%, and it currently trades at a premium. Which of the following statements is CORRECT:
a) Determine the probability of earning a return. b) Determine the probability of earning a negative return.
What is the price (expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with a AAA rating?
For each pair of assertions, indicate whether a) or b) would typically have the higher inherent risk and state why.
Using the CAPM approach, what is the best estimate of the cost of equity for Wal-Mart Stores?
What would be your average annual rate of return on the investment?
Compare the IBM bond aboe versus a "zero coupon" bond with the same face value and same YTM.
Why does the longer-term bond's price vary more than the price of the shorter-term bond when interest rates change?
What is the expected capital gains (or losses) yield for the coming year? Is this yield dependent on whether the bond is expected to be called?
The company also purchased new capital equipment for $300,000 last year. Calculate the after-tax cash flow for last year.
What are the problems caused by issuing 20-year bonds and using the proceeds to pay employees' salaries?
Is DI in compliance with its bond covenants? Why or Why Not?