Airborne Airlines Inc. has a $1,000 par value bond outstanding with 20 years to maturity. The bond carries an annual interest payment of $102 and is currently selling for $880. Airborne is in a 30 percent tax bracket. The firm wishes to know what the aftertax cost of a new bond issue is likely to be. The yield to maturity on the new issue will be the same as the yield to maturity on the old issue because the risk and maturity date will be similar.


a. Compute the yield to maturity on the old issue and use this as the yield for the new issue. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)


b. Make the appropriate tax adjustment to determine the aftertax cost of debt. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Answers

Answer 1

Answer:

(a) 11.64%

(b) 8.15%

Step-by-step explanation:

Airborne airlines has an annual interest of payment= $102

Principal payment= $1,000

Time to maturity= 20 years

Current price of the bond= $880

The formular for calculating the yield on maturity is

[ Annual interest payment+Principal payment-(price of the bond/number of years to maturity)] / 0.6(price of the bond) + 0.4(principal payment)

(a) [102+(1000-880)/20)]/ [0.6(880) + 0.4(1000)]

= [102+ (120/20)]/ [528+400]

= [102+6]/ 928

= 108/928

= 11.637%

= 11.64% ( to 2 decimal places)

(b) Kd= Yield(1-T)

Kd= 11.64(1-0.30)

Kd= 11.64×0.7

Kd= 8.145%

Kd= 8.15%( to 2 decimal places)

Hence the yield to maturity on the new issue is 11.64% and the aftertax cost of debt is 8.15%


Related Questions

how many servings are in 8 liters of honey if one serving is 1/4 of a liter?

Answers

Answer:

32 servings

Step-by-step explanation:

Take the amount of honey and divide by the size of a serving

8 ÷ (1/4)

Copy dot flip

8 * 4/1

32

There are 32 servings

Answer:

32 servings

Step-by-step explanation:

If x = 4 and y = 8 , evaluate the following expression: x/y Give your answer as a fraction in its simplest form.

Answers

Answer:

X/Y = 4/8= 1/2

Step-by-step explanation:

This is the answer of this question

7. A shopkeeper can buy 36 toys for $20.52. What will be
for 120 toys?​

Answers

Answer:

$68.40

Step-by-step explanation:

Let x represent the required cost.

Since the number of toys is directly proportional to the cost:

x : $20.52 = 120 : 36

i.e.  x/$20.52 = 120/36

      x = ([tex]\frac{120 * $20.52}[/tex])/36

      x = $2462.40/36

      x = $68.40

Hope this helps!!!

Two parallel lines are crossed by a transversal. Parallel lines x and y are cut by transversal w. On line x where it intersects with line w, 4 angles are created. Labeled clockwise, from uppercase left, the angles are: 2, 4, 3, 1. On line y where it intersects with line w, 4 angles are created. Labeled clockwise, from uppercase left, the angles are: 6, 8, 7, 5. If mAngle6 = 123.5°, then mAngle1 is 56.5°. 67.5°. 123.5°. 136.5°.

Answers

Answer:

(A)[tex]56.5^\circ[/tex]

Step-by-step explanation:

From the diagram attached:

Angle 1 and Angle 6 are Co-Interior Angles.

The sum of co-interior angle is 180 degrees.

Therefore:

[tex]m\angle 1+ m\angle 6=180^\circ\\\\m\angle 6=123.5^\circ,$ therefore:\\m\angle 1+ 123.5^\circ=180^\circ\\m\angle 1=180^\circ-123.5^\circ\\m\angle 1=56.5^\circ[/tex]

The measure of angle 1 is therefore 56.5 degrees.

The correct option is A.

∠6 and ∠1 are same-side interior angles, m∠6 = 123.5°, therefore m∠1 will be: A. 56.5°

Recall:

Same-side interior angles are supplementary to each other. They add up to give 180°.

The image showing the two parallel lines that is cut by a transversal creating angles is shown in the diagram attached below.

Given:

m∠6 = 123.5°

∠6 and ∠1 are same-side interior angles.

Therefore:

m∠6 + m∠1 = 180°

Substitute

123.5° + m∠1 = 180°

Subtract both sides by 123.5°

m∠1 = 180° - 123.5°

m∠1 = 56.5° (Option A)

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how is converting percentages to and from fractions and decimals used in daily life

Answers

Answer & Step-by-step explanation:

We use decimals every day while dealing with money, weight, length etc. Decimal numbers are used in situations where more precision is required than the whole numbers can provide. For example, when we calculate our weight on the weighing machine, we do not always find the weight equal to a whole number on the scale.

I’m kinda stuck on this, could anyone explain it ?

Answers

The slope of the given line is -3/4.

Any line perpendicular to this one will have slope -1/(-3/4) = 4/3.

Use the given point and the point-slope formula to get the equation of the particular line:

y - (-1) = 4/3 * (x - 0)

y + 1 = 4x/3

y = 4x/3 - 1

Please answer (-3+4)2 and another one is -5(4-2) I need answers to both pleaseee

Answers

Answer:

Step-by-step explanation:

Think of the outside function as a scaling quantity. You are applying that outside term to each and every term on the inside, Thats the basis for the distributive property.

1.)3 x 2 + 3 x 8 = 24

Now that you got the steps down, ima do the rest in my head

2.) 2

3.) -10

4.) -50

Answer:

Step-by-step explanation:

Distributive property: a(b +c) = ab + ac

                                    a(b - c) = ab - ac

1) 3(2 + 8) = 3*2 + 3*8

                = 6 + 24

                = 30

2) (-3 + 4)2 = -3*2 + 4*2

                 = -6 + 8

                = 2

3) -5(4 - 2) = -5*4 - (-5)*2

                 = - 20 + 10

                = -10

4)(12 +13)(-2) = 12*(-2) + 13 *(-2)

                    = -24 - 26

                    = -50

Urgent! Please help fast! Estimate using mental math: 903.6 ÷ 29.1. Show how you would estimate mentally, then show your estimated answer.

Answers

Answer:

31

Step-by-step explanation:

I would use my fingers mostly.

But, I just do it normally. I pretend I'm using a sheet of paper then I write on it for the equation.

903.6 divided by 29.1

Then I estimate it because I know that 29.1 can go into 903.6 about 31 times. Then I multiply 31 and 29.1 and i get around 903.6.

I hope this helps. I'm sorry if you get this wrong.

Answer:

30

Step-by-step explanation:

Round 903.6 to 900 and 29.1 to 30

So 900/30

= 30

This would be my estimated answer

Also 30^2

= 900

PLEASE HELP IM STRUGGLING here is a rectangle all the measurements are in centimeters
The perimeter of the rectangle is 39cm
Work out the area of the rectangle

Answers

Answer:

Area of the rectangle = 95 cm²

Step-by-step explanation:

Perimeter of the rectangle = Sum of the measures of the sides of the rectangle

From the figure attached,

Perimeter of the rectangle = 2[(3x -1) + (2x + 3)]

                                       39 = 2(5x + 2)

                                       39 = 10x + 4

                                      10x = 39 - 4

                                      10x = 35

                                          x = 3.5

Therefore, measure of the given sides will be,

Length = (3x - 1) cm

3x - 1 = (3×3.5) - 1

        = 10.5 - 1

        = 9.5 cm

Width = (2x + 3) cm

2x + 3 = (2×3.5) + 3

          = 7 + 3

          = 10 cm

Area of the rectangle = Length × width

                                   = 9.5 × 10

                                   = 95 cm²

Therefore, area of the rectangle is 95 cm².

Uma lousa digital possui uma forma retangular e tem sua largura expressa pelo polinômio b+2. Sendo sua área igual ao polinômio B ao quadrado + 5b+ 6, qual é o polinômio que expressa a altura dessa lousa?

Answers

Answer:

b+3

Step-by-step explanation:

Largura : b+2

Área: b² +5b +6

Sabe-se que a área de um retângulo é dada pela largura multiplicada pela altura.

A partir dos zeros da equação da área é possível encontrar o polinômio da altura:

[tex]b^2 +5b +6\\b=\frac{-5\pm \sqrt{25-4*1*6} }{2} \\b'=-2\\b''=-3[/tex]

Visto que o polinômio da largura é b+2, para que a equação da área seja válida, o polinômio da altura deve ser b+3.

A prova pode ser feita pela multiplicação dos polinômios:

[tex]A = L*H\\A=(b+2)*(b+3)\\A=b^2+5b+6[/tex]

Find x in this proportion. x/3 = x+2/5 x =

Answers

[tex]x = 3 \\ solution \\ \frac{x}{3} = \frac{x + 2}{5} \\ or \: 5x = 3(x + 2)(cross \: multiplication) \\ or \: 5x = 3x + 6 \\or \: 5x - 3x = 6 \\ or \: 2x = 6 \\ or \: x = \frac{6}{2} \\ x = 3 \\ hope \: it \: helps[/tex]

Please help quick im timed!!

Answers

Answer: C

Step-by-step explanation:

Make them both equal to 0

Answer:

answer is c

Step-by-step explanation:

How do I post a picture

Answers

Answer:

Go to me. Click on your profile picture then click on your profile picture again to change it

At Central Online High School, 45/100 of the students have a dog, 30/100 of the students have a cat, and 18/100 of the students have both a dog and a cat. What is the probability that students who have a cat also have a dog?

Answers

Answer:

6/15

Step-by-step explanation:

18/30 becuase 30 have a cat and 18 have both.

18/30 = 6/15

I'm always happy to help :)

please answer asap! A couple plans to have 5 children. The gender of each child is equally likely. Design a simulation involving 125 trials that you can use to model the genders of the children. Write your answers as numbers.

Answers

Step-by-step explanation:

The gender of a child which is either a boy or a girl is determined by the XX-chromosomes, or XY-chromosomes.

Since the couple plan to have 5 children, the chance of a child being a boy is equal to the chance of it being a girl - the chances are 50/50.

What we do to achieve our aim is to run a simulation that would add an X or Y to an X for all 5 children.

Doing this 125 times, we obtain the number of trials we desire.

For each trial, we get for each child, C:

C1: X + (X or Y)

C2: X + (X or Y)

C3: X + (X or Y)

C4: X + (X or Y)

C5: X + (X or Y)

Since the chance of having an X is equal to the chance of having a Y, they equal probability, which is 0.5 for each.

what are the values a b and c in the quadratic equation 0 equals 5x - 4x^2- 2​

Answers

Answer:

A: -4

B: 5

C: -2

Step-by-step explanation:

The equation we are given is 5x-4x²-2. We can rewrite this in order of standard form.

-4x²+5x-2

Now that we have the standard form, we can find a, b, and c. A, B, and C ar ethe coefficients of each term.

A: -4

B: 5

C: -2

y=-5y=−5 Evaluate this expression: 3y+6=3y+6=

Answers

Answer: 3y+6

Step-by-step explanation:

In an election of housing society,there are 30 voters.Each of them gives the vote.Three persons X,Y and Z are standing for post secretary.If Mr.X got 2/5 of the total votes and Me.Z got 1/4 of the total votes then how much did Mr.Y get?

Answers

Answer:

Mr Y got 10 votes

Step-by-step explanation:

The election of the housing society has 30 voters. Each of them gives the vote. The three person vying for the post of secretary are X, Y and Z.

Le us calculate the votes of each contestant

Mr X

He got 2/5 of the total votes

number of votes = 2/5 × 30

number of votes = 60/5

number of votes = 12

Mr Z

He got 1/4 of the total votes

number of votes = 1/4 × 30

number of votes = 30/4

number of votes = 1/4 × 30

number of votes = 7.5 ≈ 8 votes

Mr Y

The remaining votes will be 30 - 12 - 8 = 10 votes

Therefore,

Mr Y got 10 votes

Please help! Correct answer only!
Out of 250 tickets in a raffle, one ticket will win a $190 prize, one ticket will win a $120 prize, one ticket will win a $90 prize, and one ticket will win a $50 prize. The rest will win nothing. If you have a ticket, what is the expected payoff?


$____

Answers

Answer:

$1.80

Step-by-step explanation:

(190+120+90+50)/250= a total expected payoff of 1.8 dollars. Hope this helps!

What is true of the given function? The function increases at a constant additive rate. The function increases at a constant multiplicative rate. The function has an initial value of 0. As each x value increases by 1, the y values increase by 1.

Answers

Answer;

Option B is correct.

The function increases at a constant multiplicative rate.

Step-by-step Explanation:

Complete Question

A table representing the function f(x) = 2(3/2)ˣ is shown below. What is true of the given function?

x | f(x)

0 | 2

1 | 3

2 | 4.5

3 | 6.75

a) The function increases at a constant additive rate.

b) The function increases at a constant multiplicative rate.

c) The function has an initial value of 0.

d) As each x value increases by 1, the y values increase by 1.

Solution

The function provided is

f(x) = 2(3/2)ˣ

We will take as h of the options one at a time to investigate which one is true.

a) The function increases at a constant additive rate.

A function that increases at an additive rate is one whose value as x increases, also changes with a constant difference between consecutive terms. That is, the consecutive terms of the functions for consecutive whole number values of x, will be like an Arithmetic progression with a constant common difference. If this function increased at an additive rate,

f(1) - f(0) = f(2) - f(1) = f(3) - f(2)

Inserting the values

3 - 2 = 4 5 - 3 = 6.75 - 4.5

1 ≠ 1.5 ≠ 2.25

Hence, this statement isn't true.

b) The function increases at a constant multiplicative rate.

For the function to increase at a multiplicative rate, the consecutive terms of the functions for consecutive whole number values of x will behave like a geometric progression with a common ratio. That is, the division of the (n+1)th term and the nth term of the function will always be a constant. That is,

f(1) ÷ f(0) = f(2) ÷ f(1) = f(3) ÷ f(2)

Inserting the values

(3/2) = (4.5/3) = (6 75/4.5)

1.5 = 1.5 = 1.5

The ratio is truly constant, hence, we can conclude that this statement is true and the function increases at a constant multiplicative rate.

c) The function has an initial value of 0.

For this to be true, f(0) = 0.

But from the table, it is evident that f(0) = 2, hence, the initial value of the function isn't 0 and this statement is false.

d) As each x value increases by 1, the y values increase by 1.

We've already checked the difference between consecutive terms of the functions for consecutive whole number values of x, the difference includes, 1, 1.5 and 2.25. Hence, as each x value increases by 1, the y values do NOT always increase by 1 and this statement is false.

Hope this Helps!!!

Answer:

B

Step-by-step explanation:

If a line segment AB is on the number line, and the point A is at - 4 and point B is at 7, the length of AB is ____. Select one: a. - 3 b. 11 c. 3 d. 10

Answers

ANSWER:
-4,-3,-2,-1,0,1,2,3,4,5,6,7
A B
Therefore,the length of AB is 11
HOPE IT HELPS!!!!
PLEASE MARK BRAINLIEST!!!!

The length of the segment AB is 11

How to determine the length of the segment?

The given parameters are:

A = -4

B = 7

The length of the segment is calculated as:

AB = |A - B|

Substitute known values

AB = |-4 - 7|

Evaluate the difference

AB = |-11|

Take the absolute difference of 11

AB = 11

Hence, the length of the segment AB is 11

Read more about line segment at:

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What is the x-value of the vertex?

f(x)=(x+2)^2−1

x-value of the vertex:

Answers

Answer:

-2

Step-by-step explanation:

x-value of the vertex is -2.

What is vertex form of parabola?

The vertex formula helps to find the vertex coordinates of a parabola. The standard form of a parabola is [tex]y = ax^{2} + bx + c.[/tex] The vertex form of the parabola  [tex]y=a(x - h)^{2} + k.[/tex]

Given

[tex]f(x)=(x+2)^{2}- 1[/tex]............................(1)

The vertex formula helps to find the vertex coordinates of a parabola.

The standard form of a parabola is [tex]y = ax^{2} + bx + c.[/tex]

The vertex form of the parabola  [tex]y=a(x - h)^{2} + k.[/tex]

By comparing vertex form of parabola in equation 1

a = 1, h = -2 , k = -1

Hence, x-value of the vertex is -2

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What is the frequency of a wave with a period of 0.2 seconds?

Answers

Answer:  5 Hz

The frequency is the inverse of period... Them:

[tex]f=\frac{1}{T}=\frac{1}{0.2}=5 Hz[/tex]

HELP ANYONE PLEASE RIGHT ANSER ?!

Answers

Answer:

B.

Step-by-step explanation:

They all are alternating interior angles so they'll be congruent.

Answer:

B. Alternating interior angles are congruent

Step-by-step explanation:

The angles that are in the statements are all interior angles. When compared to each other, they lie on opposite sides of the transversal.

what is the solution to the equation x-16=-8

Answers

Answer:

x = 8

Step-by-step explanation:

8 minus 16 equals to a negative answer, resulting to -8.

Answer:

x = 8

Step-by-step explanation:

Add 16 to both sides of the equation.

x = −8 + 16

Add − 8 and  16

 x = 8

The velocity of an object in meters per second varies directly with time in seconds since the object was dropped, as represented by the table. The acceleration due to gravity is the constant of variation. What is the acceleration due to gravity of a falling object?

Answers

Answer: 10.2

Step-by-step explanation:

Anyone know the answer ?

Answers

Answer:

n = 7

Step-by-step explanation:

[tex]Area \: of \: \triangle = \frac{1}{2} \times base \times height \\ \\ 12 = \frac{1}{2} \times (n + 5) \times (n + 5 - 10) \\ \\ 12 \times 2 = (n + 5)(n - 5) \\ \\ 24 = {n}^{2} - {5}^{2} \\ \\ 24 = {n}^{2} - 25 \\ \\ 24 + 25 = {n}^{2} \\ \\ {n}^{2} = 49 \\ \\ n = \pm \: \sqrt{49} \\ \\ n = \pm \: 7 \\ \\ n = - 7 \: \: or \: \: n = 7 \\ [/tex]

Answer:

n = -7 ∪ 7

=> n = |7|

Step-by-step explanation:

S = 12cm = (n + 5) * (n + 5 - 10) / 2

[tex]S = 12cm = \frac{(n + 5) * (n + 5 - 10)}{2}\\\\=> 12 = \frac{(n+5)(n-5)}{2} \\12 = \frac{n^2-25}{2} \\24 = n^2 - 25\\-n^2 = -25 - 24\\-n^2 = - 49\\n^2 = 49\\n = |7| =>\\ x_1 = -7\\x_2 = 7\\[/tex]

what does it mean by bisecting angles​

Answers

Answer: A line that splits an angle into two equal angles.

Step-by-step explanation:  ("Bisect" means to divide into two equal parts.)

Bisecting angles: A line that splits an angle into two equal angles.

I need to know this problem cause I need to finish summer school

Answers

Answer:

27

Step-by-step explanation:

#3 is 1/3^3, and #4 is 1/x. The x is obviously 3^3 simplified, which is 27.

I see that you are in high school. Im in 7th grade and i can do this lol.

Suppose that you placed $500 in a bank account at the end of each year for the next 10 years. How much would be in that account at the end of the tenth year if the deposits earned an annual rate of return of 8% each year?

Answers

Answer:

5400$

Step-by-step explanation:

First, you need to figure out 8% of 500$.

That is 40$.

Now, you need to multiply 500 by 10, because there are 10 years.

That is 5000$

Now, we need to add the 8% that was added each year. So we do 40$ times 10.  400$

Then we add the 5000 and 400.

The answer is 5400$

I really hope this helped you! So sorry if it doesn't!

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