Rd is the required return on debt from an investor’s view or the cost of debt from the company’s view.

Rd = YTM on a company’s long term bond.

Table 1 McDonald’s Bond Data from FINRA

Using the Bond data from FINRA in Table 1 above, answer the following questions:

When answering the questions, you may make the following assumptions:

A) Assume Semi-annual compounding and coupon payments

B) Assume a face or par value equal to $1000

Refer to Table 1, what is the coupon rate on the Bond? ________

Refer to Table 1, when does the bond mature (Years) ?__________

Refer to Table 1, what is the current price of the Bond in $ units. (Remember Bond prices are reported as percentages of face value.)__________

Calculate the current yield using the information you have available and the formula that follows:

Current Yield= {Annual Coupon Payment/Current Price}*100

sub product type: corporate bond

coupon: 7.375

maturity : 07/15/2033

last sale: price :104.635 and yield :6.831

Answer rating: 100% (QA)

Answer 1 YTM Semiannual Interest redemption price current market pricen2 red... View the full answer