question archive 34)(A) A $1,000 face value, semi-annual bond is for sale
34)(A) A $1,000 face value, semi-annual bond is for sale
Subject:FinancePrice: Bought3
34)(A) A $1,000 face value, semi-annual bond is for sale. Given the following facts, what is the yield to maturity ? 8% coupon, current price of $980.50, 10 years to maturity.
a. 11.44% b. 6.45% c. 8.29%
(34.B)There are a relatively tiny amount of companies with annual revenues above $35 MM with bond ratings as ‘junk’, probably less than 2%.
a. False b. True
(34.C). Which of these two has a higher after-tax yield, assuming a 21% income tax bracket?
a. 4.00% Taxable Bond b. 3.25% Tax-Free Bond
