What must coupon rate be on bonds

Assignment Help Financial Management
Reference no: EM131316035

Firm B has bonds on the market with 13.5 years to maturity, a YTM of 7.4 percent, and a current price of $1,059. The bonds make semiannual payments and have a par value of $1,000.

What must the coupon rate be on these bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM131316035

Questions Cloud

Does this indicate that overflow occurred : A positive number is added to a negative number using 2's complement arithmetic. The result has a 1 in the sign bit. Does this indicate that overflow occurred?
Algorithms for performing addition and comparison : Devise a scheme for representing integers, independently of size, as binary strings. Briefly describe algorithms for performing addition and comparison using your scheme
How a family compares to structural norms in our society : The family structural theory is a nursing assessment tool used to assess how a family compares to structural norms in our society. "Structural Functional theory, which explains society's expectations of us as members, and our inability to stray to..
What ethical considerations are required to supplement laws : In making business decisions, what ethical considerations (especially those we went over in Mallor) are required to supplement the laws and regulations we have covered in this class (particularly in the areas of corporations and securities laws)?
What must coupon rate be on bonds : Firm B has bonds on the market with 13.5 years to maturity, a YTM of 7.4 percent, and a current price of $1,059. The bonds make semiannual payments and have a par value of $1,000. What must the coupon rate be on these bonds?
Describe the methods for collecting outcome measure data : Describe the methods for collecting outcome measure data and the rationale for using those methods. Identify resources needed for evaluation. Discuss the feasibility of the evaluation plan.
How to build a nor gate and an and gate in barracks logic : To create a system with multiple inputs, we allow several blankets to be placed over a single soldier. What is the maximum fanin possible in barracks logic if 170 degrees is the highest temperature a soldier can tolerate without his characteristic..
How could you use the family structural theory : How could you use the family structural theory to determine if a family is dysfunctional or not? Provide evidence to support your answer
What is yield to maturity of this bond : A Japanese firm has a bond outstanding that sells for 91 percent of its ¥100,000 par value. The bond has a coupon rate of 5 percent paid annually and matures in 12 years. What is the yield to maturity of this bond?

Reviews

Write a Review

Financial Management Questions & Answers

  Undertake some silvicultural activities to increase yield

You recently purchased some immature timberland that is forty years from being harvested. You expect to get $438/MBF when you harvest the timber. Prior to harvesting, you have two objectives. You hope to come up with a plan to generate some annual re..

  What is the value at date of a perpetual stream

Given an interest rate of 4.6 percent per year, what is the value at date t = 5 of a perpetual stream of $3,000 payments that begins at date t = 10?

  What will be your real return

Suppose that you buy a two-year 8.1% bond at its face value. What will be your nominal return over the two years if inflation is 3.1% in the first year and 5.1% in the second? What will be your real return?

  What is present value of prize interest compounded annually

A major lottery advertises that it pays the winner $10 million. However this prize money is paid at the rate of $500,000 each year (with the first payment being immediate) for a total of 20 payments. What is the present value of this prize at 10% int..

  Realized compound yield and yield to maturity

Consider an 8.5% coupon bond selling for $955.60 with 3 years until maturity making annual coupon payments. The interest rates in the next 3 years will be, with certainty, r1 = 8%, r2 = 10%, and r3 = 11%. Calculate the yield to maturity and realized ..

  Expected to pay an annual dividend in the amount

ABC Corp. is expected to pay an annual dividend in the amount of $2.50 a share next year. This dividend constantly grows by 5 percent per year. The current price of the company’s stock is $50.60 per share. What is the cost of equity?

  How much money will be in the account at the end

For the next 13 years, you decide to place $3776 in equal year-end deposits into a savings account earning 3.0 percent per year. How much money will be in the account at the end of that time period?

  What is the breakeven point in dollar sales

The Poseidon Swim Company Produces swim trunks. The average selling price for one of their is $32.97. The variable cost per unit is $23.68, has an average fixed cost per year of $31,292. What is the breakeven point in dollar sales?

  Assuming an interest rate of compounded semi-annually

What is the future value of $1,590 in 16 years assuming an interest rate of 9.75 percent compounded semi-annually? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (..

  What are the total shortage costs

ABC Company sells 2,412 chairs a year at an average price per chair of $182. The carrying cost per unit is $22.78. The company orders 344 chairs at a time and has a fixed order cost of $113.3 per order. The chairs are sold out before they are restock..

  What is the project payback period if the initial cost

An investment project provides cash inflows of 200, 400, 670, 890, 1130, 1040, 880, 740, 530, 200, 110, 30 each year starting in year 1. What is the project payback period if the initial cost is $5,600? this must done in excel.

  Unlike common stocks-preferred stocks pay fixed dividend

Unlike common stocks, preferred stocks pay a fixed dividend. Suppose a share of preferred stock pays a fixed dividend of $4 a year forever. If it sells for $80, what must be the discount rate?

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