Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

how to calculate yeild per coupon rate and cost of corporate bond? nk Loans Before-tax cost of bank loans Market value of bank loans ($000)

how to calculate yeild per coupon rate and cost of corporate bond?
image text in transcribed
image text in transcribed
nk Loans Before-tax cost of bank loans Market value of bank loans ($000) 11.80% $678 20.8% ortgage Loans Before-tax cost of mortgage loans Market value of mortgage loans ($000) 8.50% $298 9.2% basis points orporate 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 264 2.64% 2.29% 4.93% $720 4.6% Face value of all bonds ($000) Coupon rate Number of coupon payments per year Total number of coupon payments Total value of coupon payments per year (5000) Value of each coupon payment (5000) Yield per coupon payment Value of corporate bonds (5000) 20 $33.12 $8.28 1.2325% $1,237 38.0% Ordinary Shares SOURCE OF CAPITAL COST VALUE ($000) WEIGHT Bank Loans Before-tax cost of bank loans Market value of bank loans ($000) $678 Mortgage Loans Before-tax cost of mortgage loans Market value of mortgage loans ($000) $298 basis points 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 264 2.64% 2.29% $720 4.6% Face value of all bonds ($000) 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% nk Loans Before-tax cost of bank loans Market value of bank loans ($000) 11.80% $678 20.8% ortgage Loans Before-tax cost of mortgage loans Market value of mortgage loans ($000) 8.50% $298 9.2% basis points orporate 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 264 2.64% 2.29% 4.93% $720 4.6% Face value of all bonds ($000) Coupon rate Number of coupon payments per year Total number of coupon payments Total value of coupon payments per year (5000) Value of each coupon payment (5000) Yield per coupon payment Value of corporate bonds (5000) 20 $33.12 $8.28 1.2325% $1,237 38.0% Ordinary Shares SOURCE OF CAPITAL COST VALUE ($000) WEIGHT Bank Loans Before-tax cost of bank loans Market value of bank loans ($000) $678 Mortgage Loans Before-tax cost of mortgage loans Market value of mortgage loans ($000) $298 basis points 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 264 2.64% 2.29% $720 4.6% Face value of all bonds ($000) 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

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Project Finance

Authors: E.R. Yescombe

1st Edition

0127708510, 978-0127708515

More Books

Students also viewed these Finance questions

Question

Evaluate the combinations 12. C20

Answered: 1 week ago

Question

What is topology? Explain with examples

Answered: 1 week ago

Question

What is linear transformation? Define with example

Answered: 1 week ago