Business
Business, 26.06.2019 23:30, aniyahrhs1213

Your firm has a credit rating of a. you notice that the credit spread for five-year maturity a debt is 85 basis points (0.85%). your firm’s five-year debt has a coupon rate of 6%. you see that new five-year treasury notes are being issued at par with a coupon rate of 2.0%. what should the price of your outstanding five-year bonds be per $100 of face value?

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Business, 21.06.2019 21:30, dontcareanyonemo
Peninsula products has just applied for a loan at your bank. when reviewing peninsula's books for the year that just ended, you notice that the firm uses the fair value option for its bonds payable. you also see that the firm recorded a $55,000 debit in its bonds payable account and a $55,000 credit in its unrealized holding gain or loss"income account. over that same period, interest rates decreased by about 0.5 percent. how should this information affect the bank's decision as to whether to grant peninsula a loan? a : the bank should strongly consider giving a loan to peninsula because the changes in firm's bonds payable and unrealized holding gain or loss"income accounts suggest that peninsula has seen an increase in its credit rating over the past year. b : the bank should put little emphasis on the changes in peninsula's bonds payable and unrealized holding gain or loss"income accounts because these changes are likely the result of the rise in interest rates. c : the bank should hesitate before giving a loan to peninsula because the changes in firm's bonds payable and unrealized holding gain or loss"income accounts suggest that peninsula has seen a decline in its credit rating over the past year. d : the bank should put little emphasis on the changes in peninsula's bonds payable and unrealized holding gain or loss"income accounts because these changes are likely unrelated to either interest rates or the firm's credit rating.
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Business, 26.09.2019 22:20, yassinesayedahmad1
Your firm has a credit rating of a. you notice that the credit spread for five-year maturity a debt is 85 basis points (0.85%). your firm’s five-year debt has a coupon rate of 6%. you see that new five-year treasury notes are being issued at par with a coupon rate of 2.0%. what should the price of your outstanding five-year bonds be per $100 of face value?
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Business, 10.11.2019 06:31, alisonlebron15
The following table summarizes the yields to maturity on several one-year, zero coupon securities: security yieldtreasury 3.15aaa corporate 3.23bbb corporate 4.27b corporate 4.94a. what is the price(expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with a aaa rating? b. what is the credit spread on aaa-rated corporate bonds? c. what is the credit spread on b-rated coporate bonds? d. how does this credit spread change with the bond rating? why? (round to nearest cent)
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Business, 21.11.2019 01:31, krishawnnn
Dome metals has credit sales of $126,000 yearly with credit terms of net 90 days, which is also the average collection period. assume the firm adopts new credit terms of 4/18, net 90 and all customers pay on the last day of the discount period. any reduction in accounts receivable will be used to reduce the firm's bank loan which costs 10 percent. the new credit terms will increase sales by 10% because the 4% discount will make the firm's price competitive. a. if dome earns 30 percent on sales before discounts, what will be the net change in income if the new credit terms are adopted? (use a 360-day year.) b. should the firm offer the discount?
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