What is the yield to maturity of a five-year bond

Assignment Help Finance Basics
Reference no: EM131378952

Finance: YTM annually, semi-annually

Question

What is the yield to maturity of a 5-year bond that pays a coupon rate of 7.60 percent per year, has a $1,000 par value, and is currently priced at $1,255? Assume annual coupon payments.

Reference no: EM131378952

Questions Cloud

What are the number of teeth in the gear : A 20-tooth pinion with a diametral pitch of 8 rotates 2000 rpm and drives a gear at 1000 rpm. What are the number of teeth in the gear, the theoretical center distance, and the circular pitch?
Who were some of the most prominent people : How did the scientific revolution evolve? Who were some of the most prominent people? What impact would these advancements have in creating a world power
Calculate the bonds price today : General Mills has a $1,000 par value, 26-year to maturity bond outstanding with an annual coupon rate of 10.00 percent per year, paid semiannually. Market interest rates on similar bonds are 9.14 percent. Calculate the bond's price today.
What are numbers of teeth and pitch diameters of two gears : A pair of spur gears on 168 mm centers have a 3 : 1 speed reduction ratio. With a module of 4 mm, what are the numbers of teeth and pitch diameters of the two gears?
What is the yield to maturity of a five-year bond : What is the yield to maturity of a 5-year bond that pays a coupon rate of 7.60 percent per year, has a $1,000 par value, and is currently priced at $1,255? Assume annual coupon payments.
Discuss the nature and history of the puritan protectorate : Respond to each item in a complete, concise paragraph. Briefly discuss the nature and history of the Puritan Protectorate. Discuss the ways non-Muslims were treated in the Islamic world
What is the current price of the bond : Marco Chip, Inc. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 12 years and a yield to maturity of 10.33 percent, compounded semi-annually. What is the current price of the bond?
What was role of civil service examinations in ming china : What effect did the boom in the demand for rubber have on Africa's European colonies? With respect to slavery, how did the Mughal Empire differ from the Safavid and Ottoman Empires? What was the role of civil service examinations in Ming China
What is the yield to call of a thirty-years to maturity bond : What is the yield to call of a 30-year to maturity bond that pays a coupon rate of 14.81 percent per year, has a $1,000 par value, and is currently priced at $915? The bond can be called back in 6 years at a call price $1,076.

Reviews

Write a Review

Finance Basics Questions & Answers

  Describe the major components of a business model which

describe the major components of a business model. which component do you identify as the foundation component? why?is

  Net present value analysis using the data

Using pro-forma data attached prepare a net present value analysis using the data in the example and substitute the 5% hurdle rate in the problem to a 6% hurdle rate, and prepare a profitability index.

  Product at each stage of the product life cycle

at each stage of the product life cycle, justifying your assessment. Then find a colleague's post wherein you disagree with one of their selections. State why, and what stage you would have identified for the product.

  Determine the amount of interest paid in year 8

Determine the amount of interest paid in year 8 (between time 7 and 8), and the amount of principal paid in year 8. At what time will the loan be fully repaid?

  Qyou plan to deposit 250 into the savings account for each

q.you plan to deposit 250 into the savings account for each of five years beginning 1 year from now. interest rate is 9

  Discuss direct and possible indirect effect of such a policy

To make college more affordable for students from families with fewer resources, a government has proposed allowing the student of any family with less than $50,000 in savings to attend a public university for free.- Discuss the direct and possibl..

  The consultant believes that if the company moves to a

a consultant has collected the following information regarding young publishing total assets3000 milliontax

  Rosa company stock price is 5888 and recently paid a 200

rosa company stock price is 58.88 and recently paid a 2.00 dividend. this dividend is expected to grow by 25 for the

  If the appropriate discount rate is 10875 percent what is

present value with multiple cash flows saul cervantes has just purchased some equipment for his landscaping business.

  How does that transaction affect free cash flows

If the firm uses cash to repay debt, how does that transaction affect free cash flows for common equity shareholders in that period?

  Finance charge using the previous balance method

The account balance on April 1st is $50.51. On April 15th a payment of $15.00 is made. On April 25th a purchase of $19.27 is made. The annual rate is 18%. What is the finance charge using the previous balance method? What is the new balance?

  At what effective interest rate are these terms equivalent

The price of a machine is $3,500, the dealer will accept a $1,200 down payment and 24 end-of-month monthly payments of $110 each. At what effective interest rate are these terms equivalent?

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