1) Your firm has just issued a 15-year $1,000.00 par value, 10% annual coupon bond for a net price of $964.00. What is the yield to maturity?

2) Your firm has just issued a 15-year $1,000.00 par value, 10% semi-annual coupon bond for a net price of $964.00. What is the yield to maturity?

a) The semi-annual YTM is ____%

b) Annual YTM is _______%.

3) Your firm has just issued a 10-year $1,000.00 par value, 6% coupon quarterly bond for a net price of $950.00. What is the annual yield to maturity?

4) Your firm has just issued a 10-year $1,000.00 par value, 6% coupon semiannual bond for a net price of $964.00. The firm's tax rate is 28%.

a)Annual YTM ~ cost of debt is _____%.

b) The after tax cost of debt is _________%.

 

5) Your firm wishes to issue a 20 year bond, annual coupon of 6%, and the price has been determined to be RM880. The floatation cost of the issuance is 2% of the selling price. The tax rate is 24%. 

 a) The net selling price is RM________.

b) Annual YTM is ________%

c) After tax cost of debt is ______%.

 

6) A 20 year old callable bond can be called back at year 15. At the time of issuance, the bond was sold for RM875, and the callable value is RM1,100. The annual coupon rate is 6%.

 

7) A 20-year bond was issued 5 years ago for RM900, and coupon rate is 5% annually. The current market price of the bond is RM850.

a) Determine cost of debt at the time of issuance._____%

b) Determine cost of debt at the time of issuance. _____%