Consider the following yields to maturity on various one-yea…

Consider the following yields to maturity on various one-year, zero-coupon securities: Security Yield (%) Treasury 5.5​ AAA Corporate 5.7​ BBB Corporate 6.5​ B Corporate 7.1​ The price (expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with a BBB rating is closest to ________.

Brutus Co. spent $1,100,000 to build a factory. However, a h…

Brutus Co. spent $1,100,000 to build a factory. However, a hurricane came to the town and completely destroyed the factory. The company is considering to restart the project and invest $6,000,000 now to earn $7,200,000 for the next year. What is IRR of the project?

Armenian Chess Association is investing in a project that re…

Armenian Chess Association is investing in a project that requires $27,000 initial investments and is expected to yield $39,600 in a year. They decide to finance the project with combination of bonds, bank loans, swaptions, and equity. The debt structure is below: Lines of credit: $5,000 Term loans: $3,000 Callable bonds: $5,000 Convertible bonds: $4,000 Swaptions: $3,000 The rest is raised by issuing equity. What is the value of the firm if WACC is 10%?