Question
Holiday Movies Inc. has two bond issues outstanding with the following data: Bond Issue A Bond Issue B Face Value 1000 1000 Current Price 97
Holiday Movies Inc. has two bond issues outstanding with the following data:
Bond Issue A Bond Issue B
Face Value 1000 1000
Current Price 97 102
Coupon Rate 5% 7%
Payable Annually Semiannually
Years to maturity 6 12
# Outstanding 2000 6000
What is the yield to maturity on Bond A? ______________
What is the yield to maturity on Bond B? ______________
What is the market value weight (percentage) on Bond A? _____________
What is the market value weight (percentage) on Bond B? _____________
What is the weighted average cost of debt? _____________
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Value Investing
Authors: Mike Hartley
1st Edition
979-8864443309
