What is the bonds current yield

Assignment Help Financial Management
Reference no: EM131013731

A bond that matures in 5 years sells for $1,250. The bond has a face value of $1,000 and a yield to maturity of 11.5%. The bond pays coupons semiannually. What is the bond’s current yield?

Reference no: EM131013731

Questions Cloud

Discuss the analysis of transmission-line interconnection : Discuss the load-line technique of obtaining the time variations of the voltages and currents at the source and load ends of a line from a knowledge of the terminal V-I characteristics. Discuss the analysis of transmission-line interconnection..
Corporation after all corresponding taxes are paid : Consider a S corporation. The corporation earns $5 per share before taxes. The corporate tax rate is 40%, the tax rate on dividend income is 28%, and the personal income tax rate is set at 28%. What are the shareholder's earnings from the corporation..
Bond trader purchased each of the bonds : A bond trader purchased each of the following bonds at a yield to maturity of 6%. Immediately after she purchased the bonds, interest rates fell to 5%. What is the percentage change in the price of the following bond after the decline in interest rat..
Explain the bhutanese views on happiness : Include the following: Explain the Bhutanese views on happiness. Provide specific examples from the video that you found interesting or meaningful. Why
What is the bonds current yield : A bond that matures in 5 years sells for $1,250. The bond has a face value of $1,000 and a yield to maturity of 11.5%. The bond pays coupons semiannually. What is the bond’s current yield?
Discuss the determination of the voltage and current : Discuss the determination of the voltage and current distributions on an initially charged line for any given time from the knowledge of the initial voltage and current distributions.
Explain volatility clustering : Explain Volatility Clustering, Identify any two that can explain non-linear dynamics in financial time series.(stock prices, interest rates, foreign exchange rates, and inflation rates). Correct specification of a regression model requires that we de..
Relationship between subjective wellbeing and work : Prepare a 8- to 10-slide Microsoft PowerPoint presentation that illustrates the relationship between subjective wellbeing and the following topics: Physical health, Mental health and Work
Investment alternatives : A company faces the following investment alternatives Project          Capital Investment.         Cash Flows from Investment

Reviews

Write a Review

Financial Management Questions & Answers

  Considering project with an initial outlay

East Coast Television is considering a project with an initial outlay of $X (you will have to determine this amount). It is expected that the project will produce a positive cash flow of $45,000 a year at the end of each year for the next 14 years.

  What is the accumulated sum of stream of payments

What is the accumulated sum of the following stream of payments 2849 every year at the end of the year for 11 years at 9.04 percent compounded annually?

  The proportion of the optimal risky portfolio

An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 14% and a standard deviation of 20%. Stock B has an expected return of 10% and a standard deviation of 5%. The correlation coefficient between th..

  Net cash flows associated with the project

Great Lakes Clinic has been asked to provide exclusive healthcare services for next year's World Exposition. The clinic manager’s wanted to conduct a financial analysis of the project. An up-fron cost of $160,000 is needed to get the clinic in operat..

  What is the present value of a security

What is the present value of a security that will pay $19,000 in 20 years if securities of equal risk pay 12% annually? Round your answer to the nearest cent.

  Invest lump sum amount in an equity fund

Today, you invest a lump sum amount in an equity fund that provides an 10% annual return. You would like to have $11,700 in 6 years to help with a down payment for a home. How much do you need to deposit today to reach your $11,700 goal?

  Determine the cash flows from the project

Bravo Company is considering a plan to construct a new manufacturing plant to expand its operations. An attractive piece of land is available which could be purchased immediatley for $100,000. Bravo would build a plant on the land at a cost of $200,0..

  Determine the market value of no leverage inc

Determine the Market value of No Leverage, Inc., Market value of High Leverage, Inc. and Present value of the tax shield to High Leverage, Inc.

  Refuses to issue any new shares in foreseeable future

Quinlan Electrical has quite a few positive NPV projects from which to choose. The problem is that it has more of these projects than it can finance without issuing new stock and the board of directors refuses to issue any new shares in the foreseeab..

  What is the maximum profit and loss for this position

An investor purchases a stock for $56 and a put option for $.80 with a strike price of $50. The investor also sells a call option for $.80 with a strike price of $66. What is the maximum profit and loss for this position?

  Do a what if analysis by changing the probability

What is the probability that at least 30 employees out of 80 would be financially secure if they lost their job for 6 months to a year?

  For which of the investments is the date of maturity

For which of the following investments is the date of maturity known?

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