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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 $520 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 $520 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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