Assignment 24 04 2015_Bonds.xlsx - Jiminy's Cricket Farm Bond 1 Time to maturity(years Coupon Rate Frequency of coupons Market price per bond YTM

# Assignment 24 04 2015_Bonds.xlsx - Jiminy's Cricket Farm...

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Jiminy's Cricket Farm Bond 1 Time to maturity (years) 25 Coupon Rate 7% Frequency of coupons Semi-annual Market price per bond 91% of Par YTM 7.82% Book-Value (millions) \$ 23 Tax Rate 34% a) Company's Total book value of debt (millions) \$ 107 Calculation of Market Value of debt Market Value of Bond 1 \$ 20.93 Market Value of Zero Coupon Bond \$ 65.52 Total Market Value of Bonds (millions) \$ 86.45 Calculation of After-tax cost of debt After-tax cost of debt of Bond 1 5.16% YTM of Zero-Coupon Bond Time to Maturity (Years)

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• Fall '19
• Dmitrii L. Maslov

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