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

5 Write the first five terms of the sequence with nth term.

a 4n
b 2n+1
c 3n -2
d 1/2n +1
e 20 -5n
f -2n +3​

Answers

Answer:

its a lot u'll see at the end

Step-by-step explanation:

a) 4n = 4,8,12,16,20

b) 2n+1= 3,5,7,9,11

c) 3n-2= 1,4,7,10,13

d) 1÷2n+1= [tex]\frac{3}{2}[/tex], [tex]\frac{5}{4} ,\frac{7}{6} ,\frac{9}{8} ,\frac{11}{10} ,[/tex]

e) 20-5n= 15,10,5,0,-5

f) -2n+3= 1,-1,-3,-5,-7

took me a while hope it is helpful

An investment group compares returns on an account
against the function represented in the table, where x is the
time in years and f(x) is the total return on investment.
Which describes the function over the interval given in the
table?
х
a decreasing quadratic function
an increasing quadratic function
a decreasing exponential function
an increasing exponential function
0
5
f(x)
10,000
12,201.90
14,888.64
22,167.15
10
20

Answers

Answer:

d

Step-by-step explanation:

edge2020

Option D is correct. The exponential function is increasing when time goes and the total return on investment.

What is exponential function?

An exponential function is of the form aˣ where 'a' is the base of the function and 'x' is the power of the function.

What is quadratic function?

A quadratic function is" a polynomial function with one or more variables in which highest exponent of variable is 2".

According to the question,

Let 'x' is the time in years and f(x) is the total return on investment. The below table shows the function over the interval.

                    x                                                    f(x)

 a decreasing quadratic function                 10,000

 an increasing quadratic function               12,201.90

a decreasing exponential function              14,888.64

an increasing  exponential function             22,167.15            

Quadratic function f(x) = ax² +b x +c  a > 0

A decreasing quadratic function is the vertex of the parabola lies on the axis parabola. The graph of the function is increasing at one side of the axis and decreases at other side of the axis. Clearly it shows as time in years change does not give maximum total return on investment.An increasing quadratic function the vertex of the parabola lies on the axis parabola. The graph of the function is increasing at one side of the axis and decreases at other side of the axis. Clearly it shows change in time in years does not give maximum total return on investment.  

Exponential function f(x) = a. bˣ +q                                    

The exponential function is decreasing when a < 0 and 0 ≤ b < 1. Then the function f(x) is decreasing exponential function. Clearly it shows time goes, total return on investment is not maximum. The exponential function is increasing when a > 0 and b > 1. Then the function f(x) is increasing exponential function. Clearly it shows time goes, total return on investment is maximum.

Hence, the exponential function is increasing when time goes and the total return on investment.

Learn more about exponential function here

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(Number 8)!!!!!!!!!!!!!!!!

Answers

Answer:

B=29

Step-by-step explanation:

you have on the right hand side [tex](7x^{3} y^{3/4}) ^{2}[/tex] which is equal to [tex]49x^{6}yx^{3/2}[/tex] so B=49

The 6 in 61 represents how many times the value of the 6 in 69?​

Answers

1 time. The value of 6 in 69 is 60. the value of the 6 in 61 is 1 times the value of the 6 in 69.
hope this helps :))

Dante and Mia have a total of 350 pennies in their piggy banks, altogether. After Dante lost half of his pennies and Mia lost one third of her pennies, they both had an equal amount of pennies left. How many pennies did they lose altogether?

Answers

Answer:

150 pennies were lost altogether

Step-by-step explanation:

Let the initial number of pennies owned by Dante be x pennies

Let the initial number of pennies owned by Mia be y pennies

Mathematically ;

x + y = 350 •••••••(i)

So after losing half, dante will have x/2 pennies left.

Mia lost 1/3 so she will have 2/3y left

So after all the losses, they both had equal amount of pennies

This means that;

x/2 = 2y/3

Cross multiply;

3x = 4y •••••••(ii)

Let’s solve both equations simultaneously;

From i , x = 350-y

Substitute this into equation ii

3(350-y) = 4y

1050-3y = 4y

7y = 1050

y = 1050/7

y = 150

since x = 350-y

x = 350-150 = 200

Now Dante loss x/2 = 200/2 = 100

Mia lost 1/3y = 1/3 * 150 = 50

Total pennies lost = 100 + 50 = 150

*WILL MARK YOU BRAINLIEST!!!!!*

Answers

Answer:

[tex]x=12[/tex]

Step-by-step explanation:

[tex]\frac{\sqrt{3x} }{\sqrt{x-8} } =3[/tex]

[tex]\sqrt{3x}=3\sqrt{x-8}[/tex]

[tex]\left(\sqrt{3x}\right)^2=\left(3\sqrt{x-8}\right)^2[/tex]

[tex]3x=9x-72[/tex]

[tex]3x-9x=-72[/tex]

[tex]-6x=-72[/tex]

[tex]x=12[/tex]

Answer:

[tex] \frac{ \sqrt{3x} }{ \sqrt{x - 8} } = 3[/tex]

[tex] \sqrt{3x} = 3 \sqrt{x - 8} [/tex]

[tex]3x = (3 \sqrt{x - 8} )^{2} [/tex]

[tex]3x = 9(x - 8)[/tex]

[tex]3x = 9x - 72[/tex]

3x - 9x = -72

-6x = -72

x = 12

work out the area of a circle with diameter 1.8cm take pie to be 3.142 and give your answer to 1 decimal place.

Answers

Area of a circle = Pi x r^2
Area = Pi x 3.24
Area = 10.18...
Area = 10.2 cm

Which of the following best describes the graph shown below?

Answers

Answer:

B. This is a graph of a one to one function

Answer:B

Step-by-step explanation:

What is the area of the rhombus shown below?

Answers

Answer:

A. 97.5 square units

Step-by-step explanation:

==>Given:

Rhombus ABCD with the following dimensions:

diagonal 1 (d1) = BD = 15

diagonal 2 (d2) = AC = 13

AB = 9.9

==>Required:

Area of the rhombus

==>Solution:

Since we know the length of the 2 diagonals, area of the rhombus can be calculated using A = ½ × d1 × d2

Area = ½ × 15 × 13

A = ½ × 195

A = 97.5 square units

Answer:

A

Step-by-step explanation:

Please please please help me I need to get this right so please don’t do that if you don’t know geometry

Answers

Answer:

Step-by-step explanation:

All the sides are marked with congruency slashed, and they all line up when you orient the triangles the same way, so the statement is SSS.

Q4: Katie and Tyler are working at their lemonade stand. An hour ago, their pitcher of lemonade was 78 full. Since then, they have sold 12 of a pitcher of lemonade. What fraction of a pitcher do they have left?

Answers

Answer:

3/8 of the pitcher of lemonade remains.

Step-by-step explanation:

They tell us that at first they had 7/8 of a pitcher full of lemonade, and they ask us to know what fraction is left if they have taken 1/2 of the pitcher of lemonade for a while, which means that it would be a subtraction between what had at the beginning and what they have taken, would be:

7/8 - 1/2 = (14 - 8) / 8 * 2 = 6/16 = 3/8

Which means that 3/8 of the pitcher of lemonade remains.

Given ƒ(x) = 9x + 54, find x when ƒ(x) = 18. A) −6 B) −4 C) 3 D) 8

Answers

Answer:

-4 =x

Step-by-step explanation:

ƒ(x) = 9x + 54

Let f(x) = 18

18 = 9x+54

Subtract 54 from each side

18-54 = 9x + 54-54

-36 = 9x

Divide each side by 9

-36/9 = 9x/9

-4 =x

Answer: B

Step-by-step explanation:

Well, they told you what f(x) equals. So make the function of f(x) equal to the value they gave, 18

[tex]18=9x+54[/tex]

Subtract 54 from both sides to get:

[tex]-36=9x[/tex]

Divide both sides by 9 to get x = -4

Use cross products to identify the equation needed to solve this proportion: 5/x = 2/9

Answers

Answer:

x=22.5

Step-by-step explanation:

We are given the proportion:

5/x=2/9

Cross multiply. Multiply the numerator (top number) of the first fraction by the denominator (bottom number) of the second. Then multiply the denominator of the first by the numerator of the second.

5*9=2*x

45=2x

2 and x are being multiplied. The opposite of multiplication is division. Divide both sides by 2. This will cancel out the 2 being multiplied by x, and leave x by itself.

45/2=2x/2

45/2=x

22.5=x

If we substitute 22.5 in for x, the final proportion will be:

5/22.5=2/9

Answer: 22.5 = x

Step-by-step explanation: First, write the problem, 5/x = 2/9. Next, cross multiply. Write the equation, 5 x 9 = 2x. After, write the equation in a multiplying fraction sentence. 45/2 = 2x/2. Lastly, solve for x by dividing 45 by 2. You should end up with a result of 22.5 = x.

Make a magic square using only first nine odd numbers: 1, 3, 5, 7, 9, 11, 13, 15, 17. (In a magic square, the numbers in each row, in each column, and along each diagonal have the same sum.)

Answers

Answer:   [tex]\left[\begin{array}{ccc}11&13&3\\1&9&17\\15&5&7\end{array}\right][/tex]

Step-by-step explanation:

A magic cube is something like:

[tex]\left[\begin{array}{ccc}1&2&3\\4&5&6\\7&8&9\end{array}\right][/tex]

Where the numbers that we must use are:

1, 3, 5, 7, 9, 11, 13, 15, 17

If we take the addition of those 9 numbers, we get 81.

Now, we divide it by 3 (the number of numbers in each row or column) and get:

81/3 = 27

so the sum in each row, column and diagonal must be 27.

1 + 9 + 17 = 27

13 + 11 + 3 = 27

5 + 7 + 15 = 27

9 + 13 + 5 = 27

You can keep playing with this, and then start forming our number cube, some of the hints tat we can use is that the median of the group is 9, so it must be in the middle of the cuve, and the extremes, 1 and 17, must be in the same column or row as 9.

so we start with:

[tex]\left[\begin{array}{ccc}x&x&x\\1&9&17\\x&x&x\end{array}\right][/tex]

and start to fill the empty spaces, now we can use that

1 + 11 + 15 = 27 and get:

[tex]\left[\begin{array}{ccc}11&x&x\\1&9&17\\15&x&x\end{array}\right][/tex]

now for the diagonals:

11 + 9 + 7 = 27

15 + 9 + 3 = 27

[tex]\left[\begin{array}{ccc}11&x&3\\1&9&17\\15&x&7\end{array}\right][/tex]

and for the last one:

11 + 3 + 13 = 27

15 + 7 + 5 = 27

[tex]\left[\begin{array}{ccc}11&13&3\\1&9&17\\15&5&7\end{array}\right][/tex]

Antone is taking four of his friends to see the latest movie. Each ticket is $5.50, and he is paying for all five tickets. How much money does Antone need to bring to pay for all of the tickets? A. $22.00 B. $27.50 C. $88.00 D. $110.00

Answers

Answer: $27.50

Step-by-step explanation:

For all 5 tickets, Antone will pay

5 * 5.50 = 27.50

Answer:

B

Step-by-step explanation:

HELP PLEASE WITH THE IMAGE BELOW it would mean a lot if someone helped me answer this question and maybe even explain how you got it.

Answers

Answer:

65/97 = 0.67

Step-by-step explanation:

using trigonometric ratios

Cosine of angle = [tex]\frac{adj}{hyp}[/tex]

Please answer correctly !!!!!!! Will mark brainliest answer !!!!!!!!!!

Answers

Answer:

f⁻¹(f(6.022)) = 6.022

f⁻¹(-10) + f(-6) = -6 + -10 = -16

Step-by-step explanation:

f⁻¹(f(x)) = x

so  f⁻¹(f(6.022)) = 6.022

inverse function flips y and x coordinates so look at table where f(x)=-10 and read x so f⁻¹(-10) = -6

f⁻¹(-10) + f(-6) = -6 + -10 = -16

H(a)= 3a - 4; Find h(8)

Answers

Answer:

20

Step-by-step explanation:

You plug 8 into the equation where a is. 8 x 3 = 24 - 4 = 20.

A circle with center (-1, 2) and radius of 8 has the equation

Answers

Answer:

c)

Step-by-step explanation:

The equation of the circle that has a center (-1, 2) and radius of 8 will be (x + 1)² + (y – 2)² = 64. Then the correct option is D.

What is an equation of a circle?

A circle can be characterized by its center's location and its radius's length.

Let the center of the considered circle be at the (h,k) coordinate.

Let the radius of the circle be 'r' units.

Then, the equation of that circle would be:

(x – h)² + (y – k)² = r²

A circle with center (-1, 2) and radius of 8.

Then the equation of the circle will be

(x – h)² + (y – k)² = r²

(x + 1)² + (y – 2)² = 8²

(x + 1)² + (y – 2)² = 64

Thus, the equation of the circle that has a center (-1, 2) and radius of 8 will be (x + 1)² + (y – 2)² = 64.

Then the correct option is D.

Learn more about the equation of a circle here:

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Can someone please explain what I did wrong here? Thank you!

Answers

Answer:

you didn't do anything wrong who ever said you did is stupid

The answer is attached.

A car travels 0.75 miles every minute.explain how you could use proportional reasoning too find how far the car travels in a hour

Answers

Answer:

The car travels 45 miles in one hour.

Step-by-step explanation:

Knowing that one hour is 60 minutes and that the car travels 0.75 miles every minute, you can multiply 60 and 0.75 which gives you 45 miles per hour meaning in one hour the car travels 45 miles.

Joanna is making a recipe that uses 1 1/2 teaspoon of salt for every 2 cups of sugar. If Joanna increases the recipe to use 5 of sugar, how many teaspoon of salt will she need?

Answers

Answer: B. 3 3/4

Step-by-step explanation:

From the question, we are told that Joanna is making a recipe that uses 1 1/2 teaspoon of salt for every 2 cups of sugar. Since, uses 1 1/2 teaspoon of salt for every 2 cups of sugar, 1 cup of sugar will use 1/2 of 1 1/2 teaspoon of salt. This will be:

= 1/2 × 1 1/2

= 1/2 × 3/2

= 3/4 teaspoon of salt.

We then multiply the value used for a cup of sugar by 5 since Joanna increases the recipe to use 5 cups of sugar. This will be:

= 3/4 × 5

= 15/4

= 3 3/4

this question is my thing

Answers

Answer:

Below

Step-by-step explanation:

8 is classified as a rational number because it can be made into a fraction. 8.8 = 8 8/10 = 88/1

How do you solve [tex]x^2 + 7x + 2 = 0[/tex]?

Answers

Answer:

       -7 ± √6

x = ----------------

              2

Step-by-step explanation:

You have several options here.  One would be "completing the square," and another would be "quadratic formula."

Here the coefficients of this quadratic are a = 1, b = 7 and c = 2.

The discriminant is therefore b^2 - 4(a)(c), or 7^2 - 4(1)(2) = 6.

The roots are thus:

       -7 ± √6

x = ----------------

              2

(7x + 30) and 11x

I'm not sure what and is...is it adding or an equal sign?

Answers

for equal sign

(7x+30)=11x

30=11x-7x

30=4x

30/4=x

7.5=x

for plus sign

evalute

(7x+30)+11x

7x+11x+30

18x+30

factorize

(7x+30)+11x

18x+30

6(3x+5)

hope it help yuh..

The equation a=180(n-2)/n represent the angle measures,a in a regular n-sided polygon. When the equation is Solved for n,n is equal to a fraction with a denominator of a-180. What is the numerator of the fraction.

Answers

Answer:

The

numerator is 360

Step-by-step explanation:

What we need to do here is make n the subject of the formula;

a = 180(n-2)/n

an = 180n-360

180n - an = 360

n(180-a) = 360

n = 360/(180-a)

*I will give you brainliest* Just give me the answer no explanation is needed , thank you :).

Answers

Answer: True

Step-by-step explanation:

The temeprature is solely reliant on time, meaning its a function of time

please help me, I just needa pass this lesson!!!

Answers

Answer:

Plot the points (0,2) and (3,3)

Step-by-step explanation:

(0,2) is the y-intercept and the slope is always rise over run so go up 1 unit and right 3 units, that gets you to (3,3)

you could also plot any point other than (3,3) that is on the same line

Can someone help me please

Answers

Answer:

The answer to number one is 11√17

The answer to number two is 4

Step-by-step explanation:

In number one: once you get both radicands to be equal, then you can add them. Like of it like 3x+2x. The x’s are like terms, so you can add them together.

In number two: the √5 on the top and bottom cancel out. This leaves 12/3 which is equal to 4.

What is the result of subtracting the second equation from the first?
-2x+y=0
7x+3y=2

Answers

Answer:

5x -2y = -2

Step-by-step explanation:

-2x+y=0

-7x+3y=2

Subtract the second equation from the first

-2x+y=0

7x-3y=-2

------------------

5x -2y = -2

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