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

sin(x+16degrees) = cos(2x+14 degrees) what is x

Answers

Answer:

X=20°

Step-by-step explanation:

SinX+16°+Cos2X+14°=90

3x+30=90

3x=60

x=20°

The sum of interior angles of a triangle are: 78°,39° and a°. Find the value of a° a. 117° b. 102° c. 93° d. 63° e. Other:

Answers

Answer:

d. 63

Step-by-step explanation:

sum of 3 interior angles= 180°

78°+39°+a=180°

a= 180°- 117°

a= 63°

Answer:

D. 63°

Step-by-step explanation:

The Triangle Sum Theorem says that all of the angles in a triangle add up to 180°.

78° + 39° = 117°. Think of it like algebra. 180° - 117° = 63°. I hope this helps :)

What is the value of 3-(-2)

Answers

Answer:

5

Step-by-step explanation:

3-(-2)=5

Answer:

5

Step-by-step explanation:

It becomes 3+2 because the negatives cancel out.

answer to the question

Answers

Answer:

$2916.00

Step-by-step explanation:

Factor 9x6 – 16 y completely.
First factor each term.
9x6 = (__)?
16y6 = ()2
Then use a? - b2 = (a - b)(a + b). Show your work.
9x6 – 16y6 =

Answers

Answer:

(3x^3 - 4y^3) ( 3x^3 + 4y^3)

Step-by-step explanation:

9x^6 – 16 y^6

Rewriting as

(3x^3) ^2 - ( 4y^3) ^2

This is the difference of squares a^2 - b^2 = (a-b)(a+b)

(3x^3 - 4y^3) ( 3x^3 + 4y^3)

Answer:

(3x^3 - 4y^3) ( 3x^3 + 4y^3)

Solve for x.
8x - 4 = 2x - 3

Answers

8x-4=2x-3  

One solution was found :

                  x = 1/6 = 0.167

Rearrange:

Rearrange the equation by subtracting what is to the right of the equal sign from both sides of the equation :

                    8*x-4-(2*x-3)=0  

Step by step solution :

Step  1  :

Solving a Single Variable Equation :

1.1      Solve  :    6x-1 = 0  

Add  1  to both sides of the equation :  

                     6x = 1

Divide both sides of the equation by 6:

                    x = 1/6 = 0.167

One solution was found :

                  x = 1/6 = 0.167

i am not solving for x i am solving for you lol!!!

Find the area of the shape shown below.
24
25
8
units?
HELP

Answers

Answer:

hope this is correct

Answer:

108

Step-by-step explanation:

Write a sequence with at least 5 terms that forms a pattern. Identify the rule.









please its due in an hour!!!!!!!!!!!!!

Answers

The pattern is attached in the image provided with the work.

I have started off listing 4 terms and then 3 blanks

so we can study the pattern and find the next few terms.

Here, notice that the difference between -5 and 1/2 and -5 is +1/2.

The difference between -5 and -4 and 1/2 is +1/2

and the difference between -4 and 1/2 and -4 is +1/2.

Continuing the same pattern, -4 + 1/2 will be equal to -3 and 1/2.

-3 and 1/2 + 1/2 will be equal -3

and -3 + 1/2 will be equal to -2 and 1/5.

I need help please people help me

Answers

Answer:

nooooooooooooo

nooooooooooooo

Draw the line with equation x+y=2

Answers

Answer:

Arrange the variables to y intercept form: y=-x+2. We have the slope is -1, and the y intercept is 2. You should be able to draw a line from here.

Step-by-step explanation:

When you use the distance formula you are calculating the length of the _____ of a right triangle

Answers

Answer:

hypotenuse

Step-by-step explanation:

When you use the distance formula you are calculating the length of the hypotenuse of a right triangle.

When using the distance formula, you are making a right triangle whose hypotenuse connects two given points.

Answer: The blank would be hypotenuse if I’m not mistaken!

Stanley has drawn a right angle triangle. One side is 14cm and another is 18cm. There are two possible lengths for the third side. What are they?

Answers

It could either be 22.80 or 11.31.

Answer:

2V130 , 8V2

Step-by-step explanation:

If these are cahetus

x^2=14^2+18^2=196+324=520

x=V520=2V130

if 18 is not a cathetus  then

18^2=x^2+14^2

x^2=18^2-14^2

x^2=324-196=128

x=V128

x=8V2

How do you make x the subject for (A) please?

Answers

Answer:

x = y / (4x+11)

Step-by-step explanation:

y = 4x^2 + 11x

4x^2 + 11x - y = 0

4x^2 + 11x = y

x(4x + 11) = y

x = y / (4x+11)

2⁄6 + 4⁄8 + 3⁄4 = is what?

Answers

Answer:

2/6+4/8+3/4=19/12

(Decimal: 1.583333)

hope i helped

-lvr

Answer:

1 7/12

Step-by-step explanation:

2/6 + 4/8+3/4

Simplify the fractions

1/3 + 1/2 +3/4

The common denominator is 12

1/3*4/4 + 1/2 *6/6+ 3/4*3/3

4/12 + 6/12 +9/12

19/12

12/12 + 7/12

1 7/12

Fully Factorise 5k^2+7k​

Answers

Answer:

k(5k +7)

Step-by-step explanation:

The only factor which is available in both 5k^2 and 7k is k, so you take k outside the bracket and then put the remaining in the brackets

Answer:

5k^2+7k = k(5k+7)

Step-by-step explanation:

5k^2/k = 5k

7k/k = 7

How do you solve the inequality 2x-3<-52x−3<−5

Answers

Answer:

Idk it really hard to do

What is the perimeter of the triangle?

Answers

Answer:

To find the perimeter of the triangle, you need to add up the three sides of the triangle

     /\

1 /__\ 5

     9

1+5+9

_________________________________

Hey!!

The formula to find perimeter of triangle is a+b+c

For example:

If a triangle has the sides of 5,4 and 3 respectively,then to find the perimeter of triangle,we have to use the formula a+b+c which equals to 12.

Hope it helps

Good luck on your assignment

___________________________________

Graph the inequality
-9 < y + 5x < 14

Answers

Answer:

Step-by-step explanation:

A card is drawn from a well shuffled pack of 52 cards. Find and match the probability of:

A 2 of Spades 1/13

A Jack 1/26

A red King 1/4

A Diamond suit 1/52

Answers

2 of Spades: There's only one 2 of spades card in the deck, so the probability of choosing the 2 of spades is 1/52.

A Jack: There are 4 Jacks in the deck, so the probability of choosing a jack is 4/52, or 1/13.

A red King: There are 2 red kings in the deck, so the probability of choosing one is 2/52, or 1/26.

A Diamond suit: There are 13 diamond cards in the deck, so the probability of choosing one is 13/52, or 1/4.

Jenny sells 49.5 ounces of lemonade for a total of $39.60.
Find the unit price in dollars per ounce.
If necessary, round your answer to the nearest cent.

Answers

Answer:

0.8

Step-by-step explanation:

Divide the total price by how many ounces of lemonade to find the unit price.

The unit price in dollars per ounce will be;

⇒ 0.8 dollar per ounce.

What is Division method?

Division method is used to distributing a group of things into equal parts. Division is just opposite of multiplications. For example, dividing 20 by 2 means splitting 20 into 2 equal groups of 10.

Given that;

Jenny sells 49.5 ounces of lemonade for a total of $39.60.

Now,

Since, Jenny sells 49.5 ounces of lemonade for a total of $39.60.

Hence, The unit price = 39.60 / 49.5 dollars per ounce.

                                  = 0.8 dollar per ounce.

Thus, The unit price in dollars per ounce will be;

⇒ 0.8 dollar per ounce.

Learn more about the divide visit:

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I don’t understand how to find the median of the triangle.

Answers

Answer:

9

Step-by-step explanation:

You can assume the two triangles have the same side ratio since their angles are equal. So 16/18 = y-1/y

Simplify to get...

16y = 18(y-1)

16y = 18y - 18

-2y = 18

y = 9

Combine the like terms to create am equivalent expression y-(-3y)

Answers

Answer:

[tex]=4y[/tex]

Step-by-step explanation:

[tex]y-\left(-3y\right)\\\mathrm{Apply\:rule}\:-\left(-a\right)=a\\=y+3y\\\mathrm{Add\:similar\:elements:}\:y+3y=4y\\=4y[/tex]

Answer:

[tex] = 4y[/tex]

Step-by-step explanation:

[tex]y - ( - 3y)[/tex]

we know that,

[tex]( - ) \times ( - ) = ( + )[/tex]

so,

[tex]y - ( - 3y) \\ y + 3y \\ = 4y[/tex]

hope this helps

brainliest appreciated

good luck! have a nice day!

(1). An Aeroplane leaves an airport, flies due North for 2 hrs at 500km/h. It then flies on a bearing of 053 degree at 300km/h for 90 mins. How far is the plane from the airport correct to 1 dp *(2). Find the bearing of the plane from the Airport correct to 1 dp. *(3). If it takes the Aeroplane 150 mins to fly back to the airport. Find the average speed of the aeroplane for the whole flight correct to 1dp. *

Answers

Answer:

1. 1320.7 km

2. 015.8 degrees.

3. 461.8 km/h.

Step-by-step explanation:

(1) the distance from the airport is approximately 1096.5 km.

(2) the bearing of the plane from the airport is approximately 24.4 degrees.

(3) the average speed of the airplane for the whole flight is approximately 580 km/h.

(1) To find the distance the plane is from the airport, we can break down the two legs of the journey into their respective distances and use the Pythagorean theorem.

For the first leg of the journey, the plane flies due North for 2 hours at a speed of 500 km/h. Therefore, the distance covered is:

Distance = Speed * Time = 500 km/h * 2 h = 1000 km

For the second leg of the journey, the plane flies at a bearing of 053 degrees at a speed of 300 km/h for 90 minutes (1.5 hours). We can calculate the distance covered using the formula:

Distance = Speed * Time = 300 km/h * 1.5 h = 450 km

Using the Pythagorean theorem, the distance from the airport is the hypotenuse of a right triangle with sides of 1000 km and 450 km:

Distance from the airport = √(1000² + 450²) ≈ 1096.5 km (rounded to 1 decimal place)

Therefore, the distance from the airport is approximately 1096.5 km.

(2) To find the bearing of the plane from the airport, we need to determine the angle between the plane's position and the north direction. We can use the inverse tangent function (arctan) to find this angle.

The angle can be calculated as:

Angle = arctan(opposite/adjacent) = arctan(450/1000) ≈ 24.4 degrees (rounded to 1 decimal place)

Therefore, the bearing of the plane from the airport is approximately 24.4 degrees.

(3) To find the average speed of the airplane for the whole flight, we can calculate the total distance traveled divided by the total time taken.

The total distance traveled is the sum of the distances from the first and second legs of the journey:

Total Distance = 1000 km + 450 km = 1450 km

The total time taken is the sum of the time taken for each leg:

Total Time = 2 hours + 1.5 hours + 2.5 hours (150 minutes is equal to 2.5 hours)

Average Speed = Total Distance / Total Time = 1450 km / 2.5 h ≈ 580 km/h (rounded to 1 decimal place)

Therefore, the average speed of the airplane for the whole flight is approximately 580 km/h.

Learn more about average speed here

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For every 4 girls in mr hegarty class there are 5 boys. what is the ratio of boys to girls in the class? Give answer in simplest form.​

Answers

Answer: 4:5

Step-by-step explanation:

Please help ASAP! Correct answer only! This assignment is due today.
A student has to choose an elective class for the last semester of high school. His counselor suggested 8 electives, 5 of which were dance classes.

If the student randomly chose to read about 4 of the electives, what is the probability that all of them are dance classes?

Write your answer as a decimal rounded to four decimal places.

Answers

Answer:

Probability ≈ 0.0714

Step-by-step explanation:

Consider permutation and combination;

[tex]Total Combinations - 8C4,\\8C4 = 8! / 4! * ( 8 - 4 )!,\\8 * 7 * 6 * 5 / 4!,\\\\Total Combinations = 70,\\\\Combinations of Dance Classes - 5C4,\\5C4 = 5! / 4! * ( 5 - 4 )!,\\5 * 4 * 3 * 2 * 1 / 4 * 3 * 2 * 1,\\\\Dance Classes = 5,\\\\Probability - 5 / 70 = 0.0714,\\Conclusion; Probability = ( About ) 0.0714[/tex]

+18 pts

An observer (O) spots a plane (P) taking off from a local airport and flying at a 33° angle horizontal to her line of sight and located directly above a tower (T). The observer also notices a bird (B) circling directly above her. If the distance from the plane(P) to the tower (T) is 7,000 feet, how far is the bird (B) from the plane (P)? Round to the nearest whole number.

Help please !

Answers

Find attached to this answer, the appropriate diagram that would help us better understand the question

Answer:

10779 feet

Step-by-step explanation:

We would be using the Trigonometric function called Tangent to solve this question.

tan θ = Opposite side / Adjacent side

From the attached diagram,

θ = 33°

Opposite side = 7000 feet

Adjacent side = the distance of bird (B) from the plane (P) = unknown

tan 33° = 7000 feet / Adjacent side

Cross multiply

tan 33° × Adjacent side = 7000 feet

divide both sides by tan 33°

Adjacent side = 7000 feet / tan 33°

Adjacent side = 10779.054747 feet.

Approximately = 10779 feet.

Therefore, the distance of bird (B) from the plane (P) to the nearest whole number is 10779 feet.

Karla empleo 6kg de manzanas para elaborar 90 bocadillos mas ¿Cuantos Kilogramos de manzanas necesitara? ¿ cuantos bocadillos podria hacer con 12kg de manzanas?

Answers

Answer:

12kg apple will make 189 more sandwiches

Step-by-step explanation:

Here, we are told that 6kg of apple was used to make 90 more sandwiches and we need to know the number of sandwiches that can be made from 12kg of apples.

Now;

6kg made 90 sandwiches

12kg will make x sandwiches

To get x, we simply cross multiply

6 * x = 12 * 90

x = (12 * 90)/6

x = 2 * 90

x = 180 sandwiches

Solve each equation for x 3х- 12у= 27

Answers

Answer: x=4y+9

Explanation

Step 1: Add 12y to both sides

3x-12y+12y=27+12y

3x=12y+27

Step 2: Divide both sides by 3

3x/3=12y+27/3

x=4y+9

. It takes Serina 15 seconds to drive to school. Her route is 16,000 meters long. What is Serina’s average speed on her route?

Answers

[tex]answer \\ = 1066.67m / s \\ solution \\ distance \: travelled = 16000 \: m \\ time \: taken = 15 \: seconds \\ speed = \frac{distance}{time} \\ \: \: \: \: \: \: \: \: \: \: \: \: \: \: = \frac{16000}{15} \\ \: \: \: \: \: \: \: \: \: \: \: = 1066.67 \: m/s \\ hope \: it \: helps[/tex]

Answer:

[tex] = 1,066.67m {s}^{ - 1} \\ [/tex]

Step-by-step explanation:

[tex]speed = \frac{distantce}{time} \\ = \frac{16000}{15} \\ = 1,066.67m {s}^{ - 1} [/tex]

hope this helps you

brainliest appreciated

good luck! have a nice day!

what are the steps I need to do to get the answer?

Answers

Answer:

B. 10.9

Step-by-step explanation:

Area of triangle= 1/2*24*h

∠N=90° ⇒ Area of triangle= 1/2*MN*ON

MN²= h²+(24-7)²

ON²= h²+7²

24h=MN*ON24h= √h²+(24-7)²*√h²+7²(24h)²=(h²+17²)(h²+7²)h²=k576k=k²+289k+49k+289*49k²-238k+14161=0k=119h²=119h=√119= 10.9

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