?Omega Inc. holds a 12-year bond that has a 12 percent coupon rate and a marginal tax rate of 40 percent. It is currently selling for $1,000, which is the bond's face value. If interest is paid semiannually, the bond's yield to maturity is:
A. ?equal to 12 percent.
B. greater than 12 percent.?
C. ?less than 12 percent.
D. ?equal to 7.2 percent.
E. ?greater than 16.8 percent.
Answer: A
You might also like to view...
Which item below describes a common stock's total return?
A) Current return plus current yield B) Current return plus future return C) Future yield plus price appreciation D) Current yield plus future earnings
Under the 1934 Act, willful violations may result in:
a. a fine of up to $10 million for an individual. b. imprisonment of up to no more than ten years. c. a fine of up to $25 million for a corporation. d. All of these.
Many suppliers and their customers invest time and resources to build and maintain mutually beneficial relationships which are often called
A. partnerships. B. co-ops. C. monopolies. D. reciprocity. E. alliances.
Friar Corp. sells two products. Product A sells for $100 per unit, and has unit variable costs of $60. Product B sells for $70 per unit, and has unit variable costs of $50. Currently, Friar sells three units of product B for every one unit of product A sold. Friar has fixed costs of $750,000. What is Friar's break-even point in units?
A. 15,000 units of A and 15,000 units of B B. 30,000 units of A and 30,000 units of B C. 7,500 units of A and 22,500 units of B D. 22,500 units of A and 7,500 units of B