What is the bonds yield to maturity

Assignment Help Finance Basics
Reference no: EM131126465

Consider a coupon bond that has a $1,000 par value and a coupon rate of 10%. The bond is currently selling for $1,150 and has eight years to maturity. What is the bond’s yield to maturity?

Reference no: EM131126465

Questions Cloud

How much money will you have at the end of one year : How much money will you have at the end of one year? If you are saving to buy a stereo that currently sells for $1,050, will you have enough to buy it?
What is the pv of all the future property tax payments : Property taxes in DeKalb County are roughly 2.66% of the purchase price every year. If you just bought a $100,000 home, what is the PV of all the future property tax payments? Assume that the house remains worth $100,000 forever, property tax rates n..
What will happen to its price : What is the price of a perpetuity that has a coupon of $50 per year and a yield to maturity of 2.5%? If the yield to maturity doubles, what will happen to its price?
How much would you be willing to pay if this were a 20 year : You are willing to pay $15,625 now to purchase a perpetuity that will pay you and your heirs $1,250 each year, forever, starting at the end of this year. If your required rate of return does not change, how much would you be willing to pay if this we..
What is the bonds yield to maturity : Consider a coupon bond that has a $1,000 par value and a coupon rate of 10%. The bond is currently selling for $1,150 and has eight years to maturity. What is the bond’s yield to maturity?
What relationships do you observe between maturity : What relationships do you observe between maturity and discount rate and the currentprice?
What is this grand prize really worth : A lottery claims its grand prize is $10 million, payable over 20 years at $500,000 per year. If the first payment is made immediately, what is this grand prize really worth? Use an interest rate of 6%.
Calculate the present value of a 1000 zero coupon bond : Calculate the present value of a $1,000 zero-coupon bond with five years to maturity if the yield to maturity is 6%.
Why do managers of financial institutions care so much : Why do managers of financial institutions care so much about the activities of the Federal Reserve System?

Reviews

Write a Review

 

Finance Basics Questions & Answers

  How does boeing achieve a cash cycle of negative 100 days

Why is Amazon's cash cycle so much shorter than that of competitor Barnes & Noble? How does this comparison affect financial management decisions of other retailers?

  What cash flows are relevant to the value of stock why the

what cash flows are relevant to the value of stock?why the fed was initially established?suppose a firms stock has a

  What is npv

Net working capital of $131,000 will be required immediately. PUTZ has a 40 percent tax rate, and the required return on the project is 13 percent. what is npv?

  What percentage of your salary must you save each year

Your salary will increase at 4.1 percent per year, and you can earn a 12.1 percent return on the money you invest. If you save a constant percentage of your salary, what percentage of your salary must you save each year?

  A useful data structure for equivalence computations

A useful data structure for equivalence computations is the ring structure. We use one pointer and an offset field in each symbol-table entry to link members of an equivalence set.

  The required return on this low-risk stock is 900 what is

nachman industries just paid a dividend of d0 1.32. analysts expect the companys dividend to grow by 30 this year by

  What is the variance of this portfolio?

a. If your portfolio is invested 40% each in A and C, and 20% in B, what is the portfolio expected return?  b. What is the variance of this portfolio?  c. What is the standard deviation of this portfolio?

  Pick a firm or other organization

Pick a firm or other organization

  What will be the firm cost of common equity

If the firm's beta is 1.6, the risk-free rate is 9%, and the average return on the market is 13%, what will be the firm's cost of common equity using the CAPM approach?

  Is the expected return of the fund positive

Find the prevailing yield on the 10-year Treasury bond from Yahoo Finance. Is the expected return of this fund greater than the yield on the 10-year Treasury bond?

  Choose an organization delivering goods andor services

choose an organization delivering goods andor services globally. provide a background of the organization and fully

  If d1150 gwhich is constant53 and p056 whats the stocks

if d11.50 gwhich is constant5.3 and p056 whats the stocks expected capital gains yield for the coming

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