The bonds issued by XYZ Corporation are traded at par. Coupons are paid annualy and the...
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The bonds issued by XYZ Corporation are traded at par. Coupons are paid annualy and the coupon rate is 6.6%. There are 19 years left to maturity. The face value of a bond is $1,000. What is the bond's yield-to-maturiy (YTM)? A. Not able to calculate the number B. 3% C. 8% D. 6.6% E. 5% If a capital market is perfect, which statement is correct? A. The value of a levered firm is strictly larger than the value of an unlevered firm B. The WACC of a levered firm is strictly larger than the WACC of an unlevered firm C. Cost of levered equity is strictly larger than the cost of unlevered equity if beta of corporate bond is zero D. Beta of levered equity is strictly smaller than the beta of unlevered equity if beta of corporate bond is zero E. None of the above is correct The bonds issued by XYZ Corporation are traded at par. Coupons are paid annualy and the coupon rate is 6.6%. There are 19 years left to maturity. The face value of a bond is $1,000. What is the bond's yield-to-maturiy (YTM)? A. Not able to calculate the number B. 3% C. 8% D. 6.6% E. 5% The bonds issued by XYZ Corporation are traded at par. Coupons are paid annualy and the coupon rate is 6.6%. There are 19 years left to maturity. The face value of a bond is $1,000. What is the bond's yield-to-maturiy (YTM)? A. Not able to calculate the number B. 3% C. 8% D. 6.6% E. 5% If a capital market is perfect, which statement is correct? A. The value of a levered firm is strictly larger than the value of an unlevered firm B. The WACC of a levered firm is strictly larger than the WACC of an unlevered firm C. Cost of levered equity is strictly larger than the cost of unlevered equity if beta of corporate bond is zero D. Beta of levered equity is strictly smaller than the beta of unlevered equity if beta of corporate bond is zero E. None of the above is correct If a capital market is perfect, which statement is correct? A. The value of a levered firm is strictly larger than the value of an unlevered firm B. The WACC of a levered firm is strictly larger than the WACC of an unlevered firm C. Cost of levered equity is strictly larger than the cost of unlevered equity if beta of corporate bond is zero D. Beta of levered equity is strictly smaller than the beta of unlevered equity if beta of corporate bond is zero E. None of the above is correct
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