« previous next »

Author Question: Once the weighted average cost of capital (WACC) is determined, then all projects of average risk ... (Read 113 times)

james

  • Hero Member
  • *****
  • Posts: 573
on: Jul 10, 2018
Once the weighted average cost of capital (WACC) is determined, then all projects of average risk
  will be compared to the original WACC regardless of the size of the capital budget.
 
  Indicate whether the statement is true or false

Question 2

Graystone bonds have a maturity value of 1,000. The bonds carry a coupon rate of 12 percent. Interest is paid
  semiannually. The bonds will mature in nine years. If the current market price is 976.50,
 
  a. what is the yield to maturity on the bond?
  b. what is the current yield on the bond?


sarah_brady415

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jul 10, 2018
Answer to Question 1

FALSE

Answer to Question 2

a. Yield to maturity = 12.44
b. Current yield = 120/976.50 = 12.29


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Increased risk of trisomy with maternal age. Increased risk of trisomy with maternal age.
Suggested Antibiotic Prophylaxis Regimens in Patients at Potential Increased Risk of Hematogenous ... Suggested Antibiotic Prophylaxis Regimens in Patients at Potential Increased Risk of Hematogenous ...
Typical Startup Cost Categories Typical Startup Cost Categories
Binding site variation for transcription factor CEBPA along gene PCK1 as determined by ChIP Binding site variation for transcription factor CEBPA along gene PCK1 as determined by ChIP
Average household size Average household size
Cost Accounting: A Managerial Emphasis 16th Edition Cost Accounting: A Managerial Emphasis 16th Edition
Video: Genetics of Cancer

For a complete list of videos, visit our video library