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Gre4nikov [31]
2 years ago
6

Hydro Systems has bonds outstanding with a face value of $1,000, 13 years to maturity, and a coupon rate of 6.5 percent, paid an

nually. What is the company's pretax cost of debt if the bonds currently sell for $1,056?
a. 5.87 percent
b. 6.42 percent
c. 4.71 percent
d. 5.36 percent
e. 5.55 percent
Business
1 answer:
Anni [7]2 years ago
5 0

Answer:

a. 5.87 percent

Explanation:

Annual coupon = 1000*6.5%  = $65

Yield to maturity = [Annual coupon + (Face value-Present value)/time to maturity] / (Face value+Present value)/2

Yield to maturity = [65 + (1000-1,056)/13] / (1000+1,056) / 2

Yield to maturity = [65 + (-56/13)] / 2056/2 ]

Yield to maturity =  {65 - 4.31] / 1028

Yield to maturity = 60.69 / 1028

Yield to maturity = 0.0590369649805447

Yield to maturity = 5.90%

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When this happens, the sale is made since the seller no longer owns the merchandise.

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yarga [219]
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3 years ago
Which of the following is the best way to measure who read the company's public relations message and what they thought about it
algol [13]

Answer:

a. Ask consumers for relevant feedback after the campaign

Explanation:

  • The company's public messages in order to establish a relationship with the clients or its costumes have to be essentially exposed through the mediums like campaigns and the media to get relevant feedback form them and helps in the analysis if its future scope.
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6 0
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nalin [4]

Answer:

False

Explanation:

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If it is on-spot offer: On-spot offer, interview the candidates and provide a spot offer and even do verification on the same day.

If it is walk-in: It depends on the process that the organization has planned each time. Mostly there will be multiple rounds, each will be conducted in one day depending on the strength of the candidate.

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astraxan [27]

Answer:

As described below.

Explanation:

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