What is the yield to maturity for the bonds-current yield

Assignment Help Financial Management

Reference no: EM131351675

On the secondary market, bonds are trading at $11.05. The bonds have a $3.75% coupon rate paid annually and mature in five years. What is the yield to maturity (expressed at an annual rate) for the bonds if an investor buys them at the $1105 market price, and what is the current yield?

This bond has a yield to maturity rate of 1.55% and a current yield of 3.39%

This bond has a yield to maturity rate of 1.38% and a current yield of 3.75%

This bond has a yield to maturity rate of 1.55% and a current yield of 3.75%

The bond has a yield to maturity rate of 5.63% and a current yield of 3.39%

Reference no: EM131351675

Questions Cloud

Explain the living conditions of african american slaves : Explain the living conditions of African American slaves from 1500-1860 discuss the historical and cultural relevance of Wheatley's poetry

National vital statistics system : Go to http://www.cdc.gov/nchs/deaths.htm for mortality data from the national vital statistics system. Please locate an article of your choice, and prepare a 2 page report based on this article. Your report should contain:

Draw a normal distribution for the speech grades : The mean of the chemistry grades was 73, and the standard deviation was 3. Draw a normal distribution for the chemistry grades.

Create a listening outline for the song weber : Create a Listening Outline for the song Weber: Scherzo- Get the melodies in your head, so that when they return, you recognize them: "Oh, there's that melody again!" Or, "This is something I haven't heard before!"

What is the yield to maturity for the bonds-current yield : On the secondary market, bonds are trading at $11.05. The bonds have a $3.75% coupon rate paid annually and mature in five years. What is the yield to maturity (expressed at an annual rate) for the bonds if an investor buys them at the $1105 market p..

Analysis of a company using data from its annual report : Analysis of a company using data from its annual report. Using the concepts from this course, you will analyze the strengths and weaknesses of the company and write a report recommending whether or not to purchase the company stock.

Injury mechanism-all other leading causes : Using the same criteria as above, select at topic of your choice from the heading "Injury Mechanism & All Other Leading Causes" which state (of the two that you have chosen) has the higher rates of your selected cause?

Explains how each of four sources will aid in development : Develop an Annotated Bibliography that summarizes and explains how each of 4 sources will aid in development of your upcoming Problem/ Solution Essay.

The company goes through with recapitalization : RAK, Inc., has no debt outstanding and a total market value of $220,000. Earnings before interest and taxes, EBIT, are projected to be $40,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 10 percen..

User Account

All Pages