What yield to maturity is the bond offering

Assignment Help Financial Management
Reference no: EM131020871

A 5.85 percent coupon bond with 18 years left to maturity is offered for sale at $1,055.25. What yield to maturity is the bond offering? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)

Reference no: EM131020871

Questions Cloud

Discuss any ethical grey areas in this scenario : What is the value of having an ethics program (and related programs like safety programs) and what are the responsibilities of front line leaders/supervisors and the workers when they face dilemmas such as the one described?
Assuming all other relevant factors are equal : An investor in the 28 percent tax bracket is trying to decide which of two bonds to purchase. One is a corporate bond carrying an 8 percent coupon and selling at par. The other is a municipal bond with a 5.5 percent coupon, and it, too, sells at par...
Does that mean that there are fewer jobs in united states : Suppose you are explaining the benefits of free trade and someone states, "I don't understand all the principles of comparative advantage and gains from trade. I just know that if I buy something produced in America, I create a job for an American..
The amount of the impairment loss that antle would record : The amount of the impairment loss that Antle would record for goodwill at the end of 2016 is:
What yield to maturity is the bond offering : A 5.85 percent coupon bond with 18 years left to maturity is offered for sale at $1,055.25. What yield to maturity is the bond offering? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)
Write pattern matching statement using a regular expression : Write a pattern matching statement using a regular expression that returns the GI number from the header of a sequence in a FASTA file - Write a Perl program that produces the following output when searching for the word RNA in the paragraph
Compute the direct materials price variance : Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials price variance.
Determine the amount of the working capital : Determine the amount of the working capital and the current ratio.
Defining business ethics : Part 1. Should a short-term or long-term consequence make a difference in resolving an ethical dilemma? Discuss. Part 2. Of the four commonly held rationalizations for unethical behavior proposed by Saul Gellerman, which one do you thing gets used ..

Reviews

Write a Review

 

Financial Management Questions & Answers

  The risk-free interest rate is zero

A call option with X = $51 on a stock currently priced at S = $54 is selling for $8. Using a volatility estimate of σ = 0.34, you find that N(d1) = 0.7311 and N(d2) = 0.6722. The risk-free interest rate is zero. Is the implied volatility based on the..

  According to the constant dividend growth model

A share of stock will pay a dividend of $1.1 one year from now, with dividend growth of 4.4 percent thereafter. According to the constant dividend growth model, if the required return is 14.7 percent, what should the value of the stock be 2 years fro..

  Suppose the real risk free rate and inflation rate

Suppose the real risk free rate and inflation rate are expected to remain at their current levels throughout the forceseeable future. Consider all factors that affect the yield curve. then identify which of the following shapes that us treasury yield..

  What is the simple annual interest that is equivalent

You local bank quotes you an interest rate of 9% compounded monthly. If you deposit $100 today, what amount will your deposit grow to in three months? How about in one year? Suppose that the interest rate is now specified as 9% continuously compounde..

  Trenton worked on four jobs during its first year

Trenton worked on four jobs during its first year of operation: nos. 401, 402, 403, and 404. A review of job no. 403's cost record revealed direct material charges of $40,000 and total manufacturing costs of $50,000. If Trenton applies overhead at 15..

  How long would it take an investment to double its value

Currently interest rates continue to be close to historic lows, resulting in low borrowing costs for consumers. Savers, on the other hand, continue to struggle in this low interest rate environment. Currently a 6 month certificate of deposit pays abo..

  What is the overall portfolio return

Year-to-date, Company O had earned -2.10% return. During the same time period Company V earned 8.00% and Company M earned 6.25%. If you have a portfolio made up of 40.00% Company O, 30.00% Company V, and 30.00% Company M, what is the overall portfoli..

  Question 1 american standard co has a 90 day pound1 million

question 1 american standard co. has a 90 day pound1 million receivable. american standards bank bank of america

  Identify all pure strategy nash equilibrium

Assume that the demand for chalk is P = 8 -0.1, where P is the market price and Q is the total market output measured in thousands of boxes of chalk. Construct a payoff table for this game, using profits per firm as the payoffs. Identify all pure str..

  About the beta of assets

Katy's Kitten Emporium (KKE) is a thriving pet store business. You would like to understand the market risk of the KKE and are looking to find its Beta of the Assets. KKE's Beta of Equity is 1.7, the beta of debt is 0.2, and the tax rate is 29%. If K..

  Considering investing in a project with the cash flows

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistic for the pro..

  What is the percentage price change of these bonds

Bond J is a 6.2 percent coupon bond. Bond K is a 10.2 percent coupon bond. Both bonds have 20 years to maturity and have a YTM of 6.9 percent. a. If interest rates suddenly rise by 1 percent, what is the percentage price change of these bonds?

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