Often, junk bonds are not rated. Why?
Answer to relevant QuestionsEven though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 25 years ...Ponzi Corporation has bonds on the market with 14.5 years to maturity, a YTM of 6.1 percent, and a current price of $1,038. The bonds make semiannual payments. What must the coupon rate be on these bonds?You purchase a bond with an invoice price of $1,027. The bond has a coupon rate of 6.8 percent, and there are four months to the next semiannual coupon date. What is the clean price of the bond?One of the assumptions of the two stage growth model is that the dividends drop immediately from the high growth rate to the perpetual growth rate. What do you think about this assumption? What happens if this assumption is ...In the previous problem, assume that Schenkel uses cumulative voting, and there are four seats in the current election. How much will it cost you to buy a seat now?
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