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Author Question: The corporate treasurer of Wooden Furniture Inc is considering the purchase of either a municipal ... (Read 90 times)

mikaylakyoung

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The corporate treasurer of Wooden Furniture Inc is considering the purchase of either a municipal obligation
  with a 6.1 coupon or a corporate bond with a 9.5 return. Both bonds have a 1,000 par value.
 
  The company
  is currently in the 35 marginal tax bracket. Which security should the treasurer recommend?

Question 2

Assume that today's date is August 15, 2015 and that the Kroger Bond is an annual-coupon bond. Describe what each of the following terms mean and how each value was determined if appropriate.
 
  Company
  Price
  Coupon Rate Maturity Date
  YTM Current Yield
  Rating
  Kroger 84.00 6.875 8-15-2020 10.576 8.185 B2
  What will be an ideal response?


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jharrington11

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mikaylakyoung

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Reply 2 on: Jul 10, 2018
Excellent


softEldritch

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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