【单选题】Suppose the annual yield of corporate bond for firm A is 12%, the firm’s marginal tax rate is 40%, the flotation cost of the bond is 5% of the dollar amount issued. Then the cost of bond for firm A is
【单选题】What is the current yield on a five-year 5% coupon bond with $100 face value? Suppose the bond’s yield to maturity is 7%. Assume annual compounding.
【单选题】Suppose a bond promises to pay its holder $100 a year forever. The interest rate on the bond rises from 4 percent to 5 percent. The price of the bond
A.
falls from $2,500 to $2,000.
B.
does not change because it is not affected by the interest rate.
【单选题】Suppose the interest rate on a taxable corporate bond is 10% and the marginal tax rate is 2.5%. What is the equivalent tax-free interest rate on this bond?
【简答题】Suppose that the price of the forward contract for the Treasury bond was negotiated off-market andMonica Lewis, CFA, has been hired to review data on a series of forward contracts for a major . ...