Yield to maturity for the bond

Assignment Help Financial Accounting
Reference no: EM132203927

A $1,000 bond has a coupon rate of 8% and will repay its nominal value when it matures in four years' time. The bond will be purchased today for $900 ex interest and held until maturity. Calculate, to the nearest 0·01%, the yield to maturity for the bond based on today's purchase price.

Reference no: EM132203927

Questions Cloud

Why is planning important to strategic management : Write a 2-3-page reflection analyzing the work - Why is planning important to strategic management in a functional area? What are the risks of not planning
Budgetary planning and control systems : Explain THREE benefits that organisations gain from using budgetary planning and control systems.
Why do companies give dividends : Why do companies give dividends? Are companies required to declare dividends? What factors have to be considered by a company before giving a dividend?
Current expected market value of the bond : Similar bonds have a yield to maturity of 8% per annum. Show the current expected market value of the bond.
Yield to maturity for the bond : Calculate, to the nearest 0·01%, the yield to maturity for the bond based on today's purchase price.
Increasing level of trade receivables : JB is concerned about the increasing level of trade receivables and is considering various options to encourage customers to pay earlier.
Payments on stocks tax deductible : Are cash dividend payments on stocks tax deductible to the stock issuer.
Compute earnings per share for the year : a. Compute earnings per share for the year 2000. b. Compute earnings per share for the year 2001.
What is the value of annuity today : If the annual discount rate is 10% and the 6-month rate is (1+.10)1/2, then what is the value of this annuity today (assuming today is 1/1/2001)?

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Bad debt expenses debited in the income statement based on

bad debt expenses debited in the income statement based on the details.bad debts analysis allowance account nbspon

  What is the company cost of equity capital

Ortiz's CFO has calculated the company's WACC as 8.86%. What is the company's cost of equity capital? Round your answer to two decimal places.

  Preparation of cash flows statement using indirect

preparation of cash flows statement using indirect method.presented below is information related to the operations of

  Balance in the raw materials inventory account

Cost of goods manufactured, balance in the raw materials inventory account and the cost of goods manufactured for May

  Format of foreign vs domestic companies income statement

List Five differences in the Format of Foreign vs Domestic Companies Income Statement. List Five differences in the Format of Foreign vs Domestic Companies Balance Sheet.

  American micro devices pricing method

Which of the support cost functions would you expect to be the most reliable for explaining and predicting support - What do you think of American Micro Device's pricing method?

  Calculate the after-tax cash flows and net present value

For the proposed 'Buddy' capital investment with sales at 5% lower than estimated calculate the After-tax cash flows and Net present value

  Unrealized gain-loss are reflected on the balance sheet

If the company’s intention is to turn around the investment and generate a short term profit, then this is considered the asset is a srading Security and is reflected on the Income Statement; unrealized gain/loss are reflected on the Balance Sheet as..

  The five key steps to recognizing revenue

1.What are the five key steps to recognizing revenue?

  Discuss the proposed budget and finalise the budget

FNSACC503 Manage budgets and forecasts - prepare budgets and a pre-meeting report and then participate in a meeting to discuss the proposed budget

  At what stage of completion were the unfinished units

Equivalent production for the month was 4,400 units. At what stage of completion were the unfinished units at the end of the month?

  Analysis of past warranty records indicates

Bakem Enterprises manufactures and sells Ovens. Bakem provides all customers with a two-year warranty guaranteeing to repair, free of charge, any defects reported during this time period. Analysis of past warranty records indicates that 12% of all sa..

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