Question
Don't just post a pic or use an automated calc. If this can be done on a ba II plus, please show me all the
Don't just post a pic or use an automated calc. If this can be done on a ba II plus, please show me all the steps.
Howard Hospital wants to issue 15 year, zero coupon bonds that yield 7.5%. What price should it change for these bonds if the face value is 1000? Assume semiannual compounding.
a. 308.15
b. 356.08
c. 369.94
d. 331.40
e. 362.14
Edwards electronics issued 30 year, 7.5% semiannual bonds 6 years ago. The bonds currently sell at 101 percent of face value. What is the firm's aftertax cost of debt if the tax rate is 35 percent?
A. 3.59 percent
B. 4.82 percent
C. 3.76 percent
D. 5.62 percent
E. 4.40 percent
Dairy Delight wants to raise $1.4 million by selling 15-year coupon bonds at par. Comparable bonds in the market have a coupon rate of 5.4 percent, semiannual payments, 15 years to maturity, and are selling at 97.8 percent of par. What coupon rate should Dairy Delight set on its bonds?
5.25 percent
5.40 percent
5.50 percent
5.17 percent
5.62 percent
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