A firm issues 5-year bonds with a coupon rate of 4.7%, paid semiannually. The credit spread for this firm's 5-year debt is 1.2%. New 5-year Treasury notes are being issued at par with a coupon rate of 5.1%
What should the price of the firm's outstanding 5-year bonds be if their face value is $1,000?
A) $932.28
B) $12.00
C) $1305.19
D) $745.82
Answer: A
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Which of the following was listed as an effective table guideline?
A) Use no or only one decimal place (12% or 12.2%) unless more are called for by convention ($12.23). B) Place items you want the reader to compare in the same column, not the same row. C) If you have many rows, darken alternate entries or double-space after every five entries to assist the reader to accurately line up items. D) Total columns and rows when appropriate (100%). E) Avoid totaling columns as this extra information can be confusing.
Which of the following statements is true of the just-in-time operating environment?
A) Simplicity and quality are good, but inventories and nonvalue-adding activities are not. B) Inventories are necessary to support the production function. C) Just-in-time is based on push-through production concepts. D) Just-in-time is based on the scientific management principles established by F.W. Taylor.
Wages tend to vary more widely than hourly compensation because of the differences in the size of fringe benefits.
Answer the following statement true (T) or false (F)
Astin Ltd. requires all of its divisions to maintain a return on investment (ROI) of at least 25%. Over the past several years, one of Astin's divisions has consistently had the following information: Sales $2,000,000 Net operating income 500,000 In order to achieve the company's ROI goals, this division should do which of the following?
A) Maintain average operating assets of $2,000,000 or more. B) Maintain average operating assets of $2,000,000 or less. C) Maintain average operating assets of $125,000 or more. D) Maintain average operating assets of $125,000 or less.