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Company B just issued 10-year zero-coupon bonds. The face value of the bond is 1000. If those bonds sell for $575 what those bonds yield
Company B just issued 10-year zero-coupon bonds. The face value of the bond is 1000.
If those bonds sell for $575 what those bonds yield to maturity (YTM) is? Express your answer as percent.
If the YTM doesnt change what will be the price of those bonds next year?
If this is the only bond issue that Company B has outstanding what is the after tax cost of debt of Company B? The tax rate is 30%.
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