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how to calculate cost of corporate bond and yeild per coupon payment? VALUE ($000) WEIGHT COST OURCE OF CAPITAL Bank Loans 11.80 % Before-tax cost
how to calculate cost of corporate bond and yeild per coupon payment?
VALUE ($000) WEIGHT COST OURCE OF CAPITAL Bank Loans 11.80 % Before-tax cost of bank loans $678 20.8% Market value of bank loans ($000) Mortgage Loans Before-tax cost of mortgage loans Market value of mortgage loans ($000) 8.50% $298 9.2 % Corporate Bonds Credit spread Credit spread as a percentage Risk-free rate to be used to calculate cost of corporate bonds Before-tax cost of corporate bonds basis points 264 2.64% 2.29% 4.93% $720 Face value of all bonds ($000) 4.6% Coupon rate Number of coupon payments per year Total number of coupon payments Total value of coupon payments per year ($000) Value of each coupon payment ($000) Yield per coupon payment Value of corporate bonds ($000) 20 $33.12 $8.28 1.2325% $1,237 38.0% Step by Step Solution
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