Purchase Solution

Calculating yield and years till maturity. Fill in the table for the following zero coupon bonds...

Not what you're looking for?

Ask Custom Question

Question 1
Problem 4-14 (please see the attached excel file)
"Calculating Yield and years till maturity"

Fill in the table below for the following zero coupon bonds. The face value of each bond is $1,000.

Use the RATE, NPER, and PV function to solve for the unknowns in the table below.

Yield to
Price Maturity Maturity
$300 30 ?
$300 ? 8%
? 10 10%

Question 2

Problem 11-15 (please see the attached excel file)
"Determine the capital structure of a firm"

Examine the following book-value balance sheet for University Products, Inc. What is the capital structure of the firm based on market value? The preferred stock currently sells for $15 per share and the common stock for $ per share. There are one million common shares outstanding.

BOOK VALUE BALANCE SHEET
(all values in millions)

Assets Liabilities and Net Worth
Cash and short-term securities $1 Bonds, coupon = 8% paid annually
Maturity = 10 years, yield to maturity = 9% $10.0
Account receivable 3 Preferred stock (par value $20 per share) 2.0
Common stock (par value $.10) 0.1
Inventories 7 Additional paid in stockholders 10.0
Plants and equipment 21 Retained earnings 10.0
----------- ------------
$32 $32.0

Enter formulas to calculate the capital structure in dollars (Please open the attached excel files)

Capital Structure

Dollars Percent
--------------------------------
Bonds FORMULA
Preferred stock FORMULA
Common stock FORMULA
--------------------------------
Total $
--------------------------------

Purchase this Solution

Solution Summary

You will find the answer to this puzzling question inside...

Purchase this Solution


Free BrainMass Quizzes
Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Learning Lean

This quiz will help you understand the basic concepts of Lean.