What is the promised yield to maturity on the strip

Assignment Help Finance Basics
Reference no: EM13284219

You buy a principal STRIP maturing in 5 years. The price quote per hundred of par for the strip is 80%. Using semiannual compounding what is the promised yield to maturity on the STRIP?

Reference no: EM13284219

Questions Cloud

At what minimum stock price would you be willing to convert : You purchase a $1000 face value convertible bond for $975. The bond can be converted into 150 shares of stock. The stock is currently priced at $5.25. At what minimum stock price would you be willing to convert?
How much interest will borrower pay over life of mortgage : how much interest will the borrower pay over the life of the mortgage?
What will be the wavelength of the light inside the material : Using your value for n, find the speed of light inside the lucite rectangle. what will be the wavelength of the light inside the material
Depict the structure of an alkane or cycloalkane : Draw the structure of an alkane or cycloalkane that has five carbon atoms and only secondary hydrogen atoms.
What is the promised yield to maturity on the strip : You buy a principal STRIP maturing in 5 years. The price quote per hundred of par for the strip is 80%. Using semiannual compounding what is the promised yield to maturity on the STRIP?
Design a finite statemachine that detects the sequence : Design a Finite StateMachine that detects the sequence 0110. The FSM shouldnot detect overlapping sequences. Additional design criteria include: The FSM should change state on thepositive edge of the clock signal.
How much must he pay to retire the mortgage : A borrower took out a 30-year fixed-rate mortgage of $2,250,000 at a 7.2% annual rate. After five years, he wishes to pay off the remaining balance. Interest rates have by then fallen to 7%. How much must he pay to retire the mortgage (to the near..
Explain what mass of kal(oh)4 will be produced : 2Al(s)+2KOH(aq)+6H2)-->2KAl(OH)4(aq)+3H2(g) If you place 2.05 g of aluminum in a beaker with 185 ml of 1.35 M KOH, will any aluminum reamin. What mass of KAl(OH)4 will be produced
How close are the two charges : A positive charge of 0.900? C is located in a uniform field of 1.05×105 N/C. How close are the two charges

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the cash flows to investors from operating activity

Assume that the firm has a tax rate of 35 percent. Compute the cash flows to investors from operating activity.

  What is the projected increase in retained earnings

Bobbi's Bagel Emporium expects sales of $490,000 next year. The profit margin is 6.0 percent and the firm has a 30 percent dividend payout ratio. What is the projected increase in retained earnings?

  Higher risk tends to result in a higher share price

9. Given the following statement, please indicate whether it is true or false, and why: "High cash flow is generally associated with a lower share price whereas higher risk tends to result in a higher share price." (Limit your answer to less than 100..

  What is the operating cycle at telecraft

Telecraft Enterprises carries 46 days of inventory in its stores. Last year Telecraft reported net sales of $1,401,100 and had receivables of $303,600 at the end of the year. What is the operating cycle at Telecraft ?

  Time value of money-internal rate of return

You're given a business opportunity to spend $12000 in Joe's Bakehouse. He offers to pay you $6000 in two year's time and then $11000 in 4 years' time. Find out the internal rate of return without using Excel.

  Classification of equity security

On Dec 29, 2008, Sam Co. sold an equity security that had been purchased on January 4, 2007. Sam owned no other equity securities. An unrealized holding loss was reported in the 2007 income statement.

  What is probability that this particular bid will successful

You work for a consulting firm, and have submitted a bid for a large consulting contract. The firm's management thinks it has a 50-50 chance of landing the project.

  Computing the expected dividend of the firm using ebit-eps

Computing the expected dividend of the firm using EBIT-EPS analysis and What is each firm's expected dividend at the end of the next year

  What are implications of each type of majority shareholder

Are they institutional shareholders (like mutual funds or pension fund organizations)? What are the implications of each type of majority shareholder with respect to the decision making that goes on at the firm?

  How is the determination of a dividend different

How is the determination of a dividend different in common stock than preferred stock?

  Briefly explain two ways interest rates influence

Briefly explain two (2) ways interest rates influence the U.S. and global financial environment. Provide at least one (1) example of such influence for both the U.S. financial environment and one (1) example for the global financial environment.

  What is the expected return on the market

The stock of Big Joe's has a beta of 1.50 and an expected return of 12.60 percent. The risk-free rate of return is 5.1 percent. What is the expected return on the market?

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