Question
Today you can buy a $1000 face value, 4 year, 7% coupon Tesla bond.The current 4 year treasury note yields 2.75%.How much yield do you
Today you can buy a $1000 face value, 4 year, 7% coupon Tesla bond.The current 4 year treasury note yields 2.75%.How much yield do you require to compensate you for TSLA's credit risk?
If Tesla announces that they cannot meet their Model 3 production goals and cash flow will suffer as a result, would you expect the yield on the Tesla bond to rise or fall?Why?
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Basic Finance An Introduction To Financial Institutions, Investments, And Management
Authors: Herbert B. Mayo
12th Edition
1337691011, 978-1337691017
