MC – Advantages to Lessors Over Secured Loans
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
Which is NOT an advantage to lessors over secured lenders when the lessee is under bankruptcy?
Which is NOT an advantage to lessors over secured lenders when the lessee is under bankruptcy?
Determine what happens to the coupon rate, the bond price, and the yield to maturity if interest rates increase shortly after the bond is issued. Conversely, what happens if interest rates decrease shortly after the bond is issued?
If the coupon rate is higher than the yield to maturity, how will this affect the bond’s price? What happens to the bond price over its remaining maturity?
If rates rise, what happens to bond prices? If the yield is greater than the coupon, how does this impact the bond’s price? If the price is greater than par, then what is the relationship between the yield and coupon rates? Which sell for more, high-coupon bonds or low-coupon bonds? When interest rates change, do high-coupon bonds change proportionately more or less than low-coupon bonds?
In the market for U.S. Treasury bonds, what comes first and what comes after? Spot rates, yields, bond prices? How are they related?
Determine the shape of the term structure of interest rates given information about yields on high-coupon bonds and low-coupon bonds. Is the term structure upward or downward sloping?
Under what conditions will the market capitalization the EPS1/P0 ratio?
True or false, leasing is more advantageous when the lessor’s tax rate is substantially higher than the lessee’s tax rate.