Question
1. A corporation has 10,000 bonds outstanding with a 6% annual coupon rate, 8 years to maturity, a $1,000 face value, and a RM 1,100
1. A corporation has 10,000 bonds outstanding with a 6% annual coupon rate, 8 years to maturity, a $1,000 face value, and a RM 1,100 market price. What will be market value and cost of debt?
A. MV of Debt (60,000);Cost of debt (11.78%)
B. No answer
C. MV of Debt (RM11,000,000);Cost of debt (4.48%)
D. MV of Debt (1,000,000);Cost of debt; (9.99%)
E. MV of Debt (RM60,000);Cost of debt (4.48%)
2. Several well diversified stakeholders want to measure the risks during project's appraisal and that systematic risk is associated with or known to:
A. Industry Risk
B. Expected Risk
C. IRR
D. CAPM Beta Risk
E. Returning Risk
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started