Callable bond outstanding on the market

Assignment Help Financial Management

Reference no: EM13883172

Fooling Company has a 10.8 percent callable bond outstanding on the market with 25 years to maturity, call protection for the next 10 years, and a call premium of $100. What is the yield to call (YTC) for this bond if the current price is 105 percent of par value? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Reference no: EM13883172

Questions Cloud

About the price-earnings ratio : Bay City Mining, Inc. has a price of $20 a share, outstanding shares of 2.5 million, retained earnings of $1 million dollars, and a dividend yield of 2 percent. It has a price-earnings ratio of

Anomaly to the efficient market hypothesis : Which of the following is not an example of an anomaly to the efficient market hypothesis?

One-year treasury securities yield : One-year Treasury securities yield 5%. The market anticipates that 1 year from now, 1 year Treasury securities will yield 6%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities? Calculate the yield usin..

Calculate the risk premium on its common stock : Given the following information for the stock of Foster Company, calculate the risk premium on its common stock.

Callable bond outstanding on the market : Fooling Company has a 10.8 percent callable bond outstanding on the market with 25 years to maturity, call protection for the next 10 years, and a call premium of $100. What is the yield to call (YTC) for this bond if the current price is 105 percent..

Quantitative-non-quantitative factors predict bond defaults : Bond rating agencies have invested significant sums of money in an effort to determine which quantitative and non-quantitative factors best predict bond defaults. To recoup those costs, some bond rating agencies have tied their ratings to the purchas..

Winning contractor is qualified and capable of doing work : Discuss whether the cost analysis or price analysis should be a key factor to determine whether the winning contractor is qualified and capable of doing the work. Provide and actual or theoretical example.

Balance of the savings account as down payment : An investor wants to save for five years for a down payment on a house. She deposits $200 per month into a savings account paying 7% compounded monthly. At the end of the five years, she places the balance of the savings account as a down payment on ..

Setting the price on a new outpatient service : Assume that managers of QVC Hospital are setting the price on a new outpatient service. Here are relevant data estimates: Variable cost per visit $25.00. Annual Direct Fixed Costs $750,000

User Account

All Pages