Andrew Industries is contemplating issuing a 30-year bond with a coupon rate of 7.00 % (annual coupon payments) and a face value of $ 1 comma 000. Andrew believes it can get a rating of A from Standard & Poor's. However, due to recent financial difficulties at the company, Standard & Poor's is warning that it may downgrade Andrew Industries' bonds to BBB. Yields on A-rated, long-term bonds are currently 6.50 %, and yields on BBB-rated bonds are 6.90 %.A. What is the price of the bond if Andrew Industries maintains the A rating for the bond issue? B. What will be the price of the bond if it is downgraded?
Answers: 3
Business, 21.06.2019 13:30
Corporation b reported earnings per share of $10. corporation b has 100,000 shares of common stock outstanding and reported an increase in owners' equity of $400,000 for the period. corporation b paid $50,000 in interest expense during the period. corporation b paid dividends per share of
Answers: 3
Business, 21.06.2019 20:20
Jimmy owns an ice cream parlor. he designs a schedule for the different tasks the employees have to perform in order to prevent monotony at work. according to the schedule, if an employee makes waffle cones on a day, he serves ice creams the next day and clears the tables on the day after that. jimmy is using the approach at his ice cream parlor.
Answers: 2
Andrew Industries is contemplating issuing a 30-year bond with a coupon rate of 7.00 % (annual coupo...
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