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What is the yield to maturity on bonds if its after-tax cost of debt is 10 percent and its tax rate is 35 percent?
Wiki User
∙ 9y ago
The yield would be 15.38%.
Wiki User
∙ 9y ago
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How do you calculate a bond value that has a ten-year maturity a 12 percent coupon rate with annual payments and a 1000 par value?
You would need to know a Yield To Maturity to answer this question.
How do you find 85.0 percent in percent yield?
if you received 85.0 percent back from your product then your percent yield is 85 percent.
What is the yield curve?
The yield curve is the relationship between an interest rate and the time to maturity for a given debt. Typical debts may be U.S. Treasury debt instruments (T-Bills, T-Notes, etc.) or the LIBOR lending rate. A yield curve is normally upward sloping, where short term lending would pay a lower rate (since it incurs less risk on the part of the borrower) compared to longer term lending (which places more risk on the borrower). In general the longer amount of time the lender loans money, the more that it earns as a result. However, yield curves -- adjusted daily -- can vary in their shape depending on current economic conditions, long term market outlook, etc. A yield curve describes the 'yield to maturity' of a collection of similar bonds (rating wise) with different periods to maturity. (src below)
Why don't reactions give us a 100 percent yield?
why don't reactions give us a 100 percent yield?
What is a Yield Maintenance Fee?
A fee paid by a mortgage holder as a prepayment premium in order to attain the same yield they would have if they had paid all payments to maturity.
Compute the current price of the bonds if the present yield to maturity is?
Compute the current price of the bond if percent yield to maturity is 7%
What happens when a yield to maturity is less than the yield to call?
The issuer will call the bonds and issue new bonds to the maturity date.
Does the yield to maturity represent the promised or expected return on the bonds?
The yield to maturity represents the promised yield on a bond
The 6 percent annual coupon bonds of Greentree Inc are selling for 1020 have a face value of 1000 and have a yield to maturity of 5.43 percent How many years will it be until these bonds matu?
4 years
Will a bond's yield to maturity increase or decrease if a bond 's price increases?
as yield to maturity increases the bonds price decreases, because a higher yield to maturity means its riskier to investors
What are the different types of yields on bonds?
* yield to worst (to maturity or to call date) * current yield * coupon yield
The Heuser Company's currently outstanding bonds have a 10 percent coupon and a 12 percent yield to maturity Heuser believes it could issue new bonds at par that would provide a similar yield to matu?
After cost of debt = 12% x (1-0.35) = 7.8%
How is yield curve used in finance?
A yield curve is a graph that shows the relationship between yield and maturity on bonds. The graph plots the time or maturity on the x-axis and the yield on the y-axis. The yield curve will show how the yield on the bond changes with varying maturities.
When a bonds yield to maturity is greater than the bonds coupon rate the bond?
When the yield of a bond exceeds it coupon rate, the price will be below 'par' which is usually $100.
Will a call provision increase or decrease the yield to maturity at which a firm can issue a bond?
Callable bonds will pay a higher yield than comparable non-callable bonds. Take from answers.com
Why do bond prices and yields vary inversely?
Bonds are valued by discounting the coupon payments and the final repayment by the yield to maturity on comparable bonds. The bond payments discounted at the bond’s yield to maturity equal the bond price. You may also start with the bond price and ask what interest rate the bond offers. This interest rate that equates the present value of bond payments to the bond price is the yield to maturity. Because present values are lower when discount rates are higher, price and yield to maturity vary inversely.
If a coupon bond is selling at par does the current yield equal its yield to maturity?
Yield usually refers to yield to maturity. If a bond is trading at par it usually means the yield to maturity is equal to the coupon.
