Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. part a and b on december 20, 1994 the nippon tel

part a and b On December 20, 1994 the Nippon Telegraph & Telephone...

80.2K

Verified Solution

Question

Finance

image
part a and b
On December 20, 1994 the Nippon Telegraph & Telephone Corporation (NTT) issued 1 billion of 10-year debentures due December 20, 2004. The debentures carried a 4 3/4% coupon. They were priced at par, that is, they cost the investor 100 per 100 of face value. The entire amount of borrowed principal would be repaid at maturity. Interest would be paid annually upon the anniversary date of the issuance (i.e., on December 20th of each year). The debentures carried a AAA credit rating. A. What was the yield to maturity of NTT's debentures at the time of issuance? What would it have been if the bonds were priced at 99 instead of 100 (i.e., at 99% of face value)? at 101 instead of 100? By 1996 yields on AAA yen debt maturing in 8 years had dropped to 3.00%. Given this yield to maturity, at what price should the NTT debentures have been selling

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A project has an installed cost of $500,000 and requires an additional working capital investment of...

Finance
Q

Describe the kinetic differences between an uncatalyzed second order chemical reaction and an enzyme catalyzed reaction.

Chemistry
Q

What is the truss analogy in dimensioning of RC beams in bending? Sketch the imaginary truss...

Civil Engineering
Q

Due to the covid-19 pandemic, the US economy entered a downturn that would eventually lead to recession....

Economics
Q

Problem 4 20 Points Use one of the golden triangles to prove that cos 36...

Geometry
Q

B 93 E 161

Geometry
Q

The average human gestation time is 266 days from conception. A researcher suspects that proper...

Basic Math
Q

You own 15 CDs You want to randomly arrange 7 of them in a CD...

Statistics
Q

Below are the instructions, I have attatched the screenshots of what needs to be filled...

Accounting
Q

Required: 1. What is the company's margin of safety? (Do not round intermediate calculations.) 2....

Accounting
Q

The following transactions are from ohlm company

Accounting
Q

Theoretically, regular stock split and stock dividend will have no impact on the firms value...

Finance