The yield to maturity of the bond

Assignment Help Financial Management
Reference no: EM13731555

A bond sells for $941.15 and has a coupon rate of 7.80 percent. If the bond has 21 years until maturity, what is the yield to maturity of the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Reference no: EM13731555

Questions Cloud

Hypothetical nonprofit service organization : You are to take on the role of an executive board member for a hypothetical nonprofit service organization. As a group, you will decide what kind of community service your organization provides. It can be a homeless shelter, low-income housing pro..
Bond is treated as an original issue discount bond : A newly issued 10-year maturity, 6% coupon bond making annual coupon payments is sold to the public at a price of $955. What will be an investor’s taxable income from the bond over the coming year? The bond will not be sold at the end of the year.
Analyze work performance : The CEO does not agree, and has tasked Francie with developing a plan that will analyze work performance and determine what needs to be done to effectively increase performance, instead of hiring new employees. She needs to provide a strategic rec..
What are the strategies and goals of your company : What are the strategies/goals of your company and how does your selected process support/fit them, Who are the stakeholders in the process, what are their expectations, and what are the goals of the process
The yield to maturity of the bond : A bond sells for $941.15 and has a coupon rate of 7.80 percent. If the bond has 21 years until maturity, what is the yield to maturity of the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. O..
Major mission and vision of the company : Then most importantly identify the major mission and vision of the company, the goals and objectives, and state whether it is in line with the needs of the major stakeholders involved (e.g., the customers, the employees, and such).
What determines the value of a call provision : The core business of TVL Corporation is undergoing a difficult period. TVL bonds have been downgraded to CCC in order to reflect the higher probability of default the company now faces. TVL is considering a very promising (high NPV, low risk) capital..
Detail value that build-a-bear creates for its customers : Give examples of needs, wants, and demands that Build-A Bear customers demonstrate, differentiating each of these three concepts. What are the implications of each on Build A-Bear's actions?
How to constructing a business plan for the restaurant : For your term project, you are going to explore your restaurant. The exploration will be constructing a business plan for the restaurant you have been using throughout the term of the class.

Reviews

Write a Review

Financial Management Questions & Answers

  A suppose the second last 127 million and last 767 million

a. suppose the second last 12.7 million and last 76.7 million mortgage loans in loan group 1 in the nationwide

  What is the net present value of this investment

You are making a $63,500 investment and feel that a 10% rate of return is reasonable given the nature of the risks involved. You feel you will receive $19,500 in the first year, $24,700 in the second year and $43,200 in the third year. What is the ne..

  Find its current price-earnings ratio

Ider Corp expects to have $3.73 as earnings per share next year. The cost of equity for Ider is 16%, whereas its dividend yield is 4%. The price per share of Ider is $40. Find its current Price-Earnings ratio (P/E ratio).

  What is the remaining balance

My small business recently sent an invoice for consulting fees, of $8,000 to a client company on Dec 20, 2012. The terms were 2/10, 1.5/15, 1/30, n/60. The client sent a partial payment of $2,500.00 on January 5, 2013. What is the remaining balance?

  A commodity linked bond is issued with an embedded call

a commodity linked bond is issued with an embedded call option. the current commodity price is 110 as is the exercise

  Examine the decision metric profit margin

Compare the decision metrics NPV & IRR for the "no recovery of NWC" and "recovery of NWC" scenarios, stating which scenario best captures reality. Based on your answer, give the project a green or red light.

  Estimate the probability that the exchange rate

An exchange rate is currently 0.8000. The volatility of the exchange rate is quoted as 12% and interest rates in the two countries are the same. Using the lognormal assumption, estimate the probability that the exchange rate

  A regional bank has decided to open an office overseas for

a regional bank has decided to open an office overseas for serving those businesses that are expanding internationally.

  What is the current value of vandells stock

What is the current value of Vandell's stock and what profit or loss would Security Brokers incur if the issue were sold to the public at the following average price?

  Risk bearing-marketing and auditing the financial statements

Which of the following is not one of the four main functions that underwriters provide? Risk bearing. Marketing, Auditing the financial statements

  Sufficient revenues to generate tax shield from depreciation

Piliot plus pens is deciding when to replace its old machine. The machine's current salvage value is $2.34 million. Its current book value is $1.43 million. If not sold, the old machine will require maintenance costs of $975,000 at the end of the yea..

  Find the yield to maturity of a bond

Find the yield to maturity of a bond which matures in 15 years, is currently selling at $900 and has an annual coupon payment of 4% paid, semi-annually.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd