PRIN.OF CORP.FINANCE-CONNECT ACCESS
13th Edition
ISBN: 2810023360757
Author: BREALEY
Publisher: MCG
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Textbook Question
Chapter 23, Problem 3PS
Bond ratings It is 2030 and the yields on corporate bonds are as follows:
Tau Corp wishes to raise $10 million by an issue of 9% 10-year bonds. What will be the likely issue price (as a percent of face value) if Tau is rated (a) Aaa, (b) A, or (c) Ba?
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GT Cap. Corp. will be issuing 5-year P20,000,000-face value bonds at an issue price equal to face. It has a nominal interest rate of 8%, due semi-annually. If it would incur issuance cost of P600,0000 and the tax rate is 30%, what is the effective cost of the bonds using the YTM formula?
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Chapter 23 Solutions
PRIN.OF CORP.FINANCE-CONNECT ACCESS
Ch. 23 - Expected yield You own a 5% bond maturing in two...Ch. 23 - Bond ratings In February 2018, Aaa bonds yielded...Ch. 23 - Bond ratings It is 2030 and the yields on...Ch. 23 - Prob. 4PSCh. 23 - Default option Other things equal, would you...Ch. 23 - Prob. 6PSCh. 23 - Prob. 7PSCh. 23 - Default option Digital Organics has 10 million...Ch. 23 - Prob. 9PSCh. 23 - Prob. 10PS
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What happens to my bond when interest rates rise?; Author: The Financial Pipeline;https://www.youtube.com/watch?v=6uaXlI4CLOs;License: Standard Youtube License