Question: QUESTION 7 IBM has just issued a callable (at par) 5 year, 9% coupon bond with quarterly coupon payments. The bond can be called at

QUESTION 7 IBM has just issued a callable (at par) 5 year, 9% coupon bond with quarterly coupon payments. The bond can be called at par in two years or anytime thereafter on a coupon payment date. It has a price of $102 per $100 face value, implying a yield to maturity of 8.78%. What is the bond's yield to call? O 6.86% 8.78% O 8.15% O 7.91% QUESTION 8 Suppose you borrow $10,641.61 when financing a gym valued at $35,981.54. Assume that the unlevered cost of the gym is 22.86% and that the cost of debt is valued at 11.61%. What should be the cost of equity of your firm? MOTE. ACOP in narcentage LF VULCwAri AOE bananuor AOC
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