Issued bonds-what is the current yield on the bond

Assignment Help Financial Management

Reference no: EM13875937

Wal-Mart has issued bonds with 7 years to maturity, a 7.5% coupon rate (paid semi annually), and $1,000 face value. If the price of the bond is $750, what is the current yield on the bond?

Reference no: EM13875937

Questions Cloud

What is the reserve requirement : If the Fed increases bank reserves in the system by $75 million and the money supply increases by $680 million, what is the reserve requirement (assume that banks do not hold excess reserves)?

What is the annual interest rate on a two-year loan : Unbiased Expectations Theory Suppose we observe the following rates: the interest rate for the next year is 6% and the one-year interest rate expected one year from now is 9%. What is the annual interest rate on a two-year loan?

Classifications of current assets-plant and equipment : Prepare a classified balance sheet in report form. For assets, use the classifications of current assets, plant and equipment, intangibles, and other assets. For liabilities, use the classifications of current liabilities and long-term liabilities.

What is the expected return on the stock : You are an investor in company which is an auto parts supplier. They will pay a dividend next year of $0.80 per share and are expected to grow at an annual rate of 2%. The price of the stock is currently $37.24. What is the expected return on the sto..

Issued bonds-what is the current yield on the bond : Wal-Mart has issued bonds with 7 years to maturity, a 7.5% coupon rate (paid semi annually), and $1,000 face value. If the price of the bond is $750, what is the current yield on the bond?

What is the firms cost of equity : Chelsea Fashions is expected to pay an annual dividend of $0.80 a share next year. The market price of the stock is $22.40 and the growth rate is 5 percent. What is the firm's cost of equity?

Easterns products-would reduce pre-tax annual cash flows : Eastern Clothing Company is considering manufacturing a new style of shirt, whose data are shown below. The equipment to be used would be depreciated by the straight-line method over its 3-year life and would have a zero salvage value, and no new wor..

Can netflix be considered a channel captain : Can Netflix be considered a channel captain? Explain your answer. What is Netflix doing currently to ensure they stay relevant in their market (additional research is required for this answer, beyond the case study)

What is the dividend yield : For the past six years, the price of Slippery Rock stock has been increasing at a rate of 9.6 percent a year. Currently, the stock is priced at $67 a share and has a required return of 14 percent. What is the dividend yield?

User Account

All Pages