Please respond to the following:

  • Determine the yield spread between the corporate bond and the Treasury bond.

  • Alternatively, you are considering a purchase of Laissez-Faure?s preferred stock. Assume that the preferred stock has a current market price of $42, a par value of $50, and dividend amount of 10% of par. Your required rate of return for investments of this type is 12.5%. Determine if you be willing to buy the firm?s preferred stock. Why or why not?

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Please respond to the following:

  • Determine the yield spread between the corporate bond and the Treasury bond.

  • Alternatively, you are considering a purchase of Laissez-Faure?s preferred stock. Assume that the preferred stock has a current market price of $42, a par value of $50, and dividend amount of 10% of par. Your required rate of return for investments of this type is 12.5%. Determine if you be willing to buy the firm?s preferred stock. Why or why not?

Leave a Reply

Your email address will not be published. Required fields are marked *