What is the bonds yield to maturity

Assignment Help Financial Management

Reference no: EM131027199

Suppose a ten-year, 1,000 bond with an 8.8% coupon rate and semi annual coupons is trading for 1,034.65.

A. What is the bond's yield to maturity (expressed as an APR with semi annual compounding)?

B. If the bond's yield to maturity changes to 9.5% APR, what will be the bond's price?

Reference no: EM131027199

Questions Cloud

What is the minimum number of bonds : The Copycat Firm wants to raise $10 million to expand its business. To accomplish this, it plans to sell 30-year, $1,000 face value zero-coupon bonds. The bonds will be priced to yield 6%. What is the minimum number of bonds it must sell to raise the..

What is the net present value of the cash flows : What is the net present value of the following cash flows if the relevant discount rate is 8.8 percent?

What was its operating profit margin : In 2014 Electric Autos had sales of $165 million and assets at the start of the year of $280 million. If its return on start-of-year assets was 10%, what was its operating profit margin?

What is the value x that must be deposited into the account : A father wants to set up a bank acount that will pay his daughter $18,000 at the end-of-quarter (EOQ) 4 and $32,000 at EOQ 8. He will fund this account by making quarterly payments of $x from the present (time zero) through EOQ 7. a) Draw a cash-flow..

What is the bonds yield to maturity : Suppose a ten-year, 1,000 bond with an 8.8% coupon rate and semi annual coupons is trading for 1,034.65. What is the bond's yield to maturity (expressed as an APR with semi annual compounding)? If the bond's yield to maturity changes to 9.5% APR, wha..

Coupon rate and semi annual coupons is trading : Suppose a ten-year, 1,000 bond with an 8.8% coupon rate and semi annual coupons is trading for 1,034.65. What is the bond's yield to maturity (expressed as an APR with semi annual compounding)? If the bond's yield to maturity changes to 9.5% APR, wha..

Standard deviation of returns and expected rate of return : Stock A has an expected rate of return of 12% and a standard deviation of returns of 40%. Stock B has an expected rate of return of 18% and a standard deviation of returns of 60%. The correlation coefficient between the returns of Stock A and Stock B..

Medical insurance for your family : You have medical insurance for your family with a $250 deductible, 20% coinsurance, and $1,500 OOP maximum for each individual and $3,000 family OOP maximum. Calculate your OOP costs if you incur $6,000 in medical costs.

Describe the concept of incremental cash flows : Eureka Bottling Company was established in 1992 by Josie Smith. The company was extremely successful at the beginning of the 21st century, but sales have waned since then. In an attempt to rejuvinate EBC's sales, Ms. Calculate the weighted average co..

User Account

All Pages