Yield-to-maturity on the date

Assignment Help Finance Basics
Reference no: EM131037387

The Pennington Corporation issued bonds on January 1, 1987. The bonds were sold at par, had 12% annual coupon, paid semi-annually, and mature on December 31, 2016.

A) What was the yield-to-maturity on the date the bonds were issued?

B) What was the price on January 1, 1992, assuming interest rates have fallen to 10%?

C) Find the current yield, capital gains/losses yield and total yield on January 1, 1992?

Reference no: EM131037387

Questions Cloud

Determine the bounce height h2 of the ball : Determine the bounce height h2 of the ball (a) if υ0 is constant and (b) if an upward elevator acceleration α = g/4, begins at the instant the ball is released. The coefficient of restitution for the impact is e.
The dc common-mode voltage vcm : The differential amplifier in Fig. P9.57 utilizes a resistor RSS to establish a 1-mA dc bias current. Note that this amplifier uses a single 5-V supply and thus the dc common-mode voltage VCM cannot be zero. Transistors Q1:and Q2:
Determine the magnitude va of the absolute velocity : determine the magnitude vA of the absolute velocity of the slider as it passes point C if it is released at point B with no velocity relative to the block. Apply the equation, both as an observer fixed to the block and as an observer fixed to the ..
For the differential amplifier shown : p(W/L) = 4 mA/V2, and assume that the bias current source has an output resistance of 30 kΩ. Find /VOV /, gm,/ Ad / , / Acm / , and the CMRR(in dB) obtained with the output taken differentially. The drain resistances are known to have a mismatch o..
Yield-to-maturity on the date : The Pennington Corporation issued bonds on January 1, 1987. The bonds were sold at par, had 12% annual coupon, paid semi-annually, and mature on December 31, 2016. A) What was the yield-to-maturity on the date the bonds were issued?
Determine the work uƒ done by friction : The 4-kg slider is released from rest in position A and slides down the vertical-plane guide. If the maximum compression of the spring is observed to be 40 mm, determine the work Uƒ done by friction.
What is the npv of the project : Flatte Restaurant is considering the purchase of a $10,400 soufflé maker. The soufflé maker has an economic life of five years and will be fully depreciated by the straight-line method.
Conduct an experiment by applying a known force f : Assume that the shuttle is between perigee and apogee in the elliptical orbit so that the orbital speed is changing with time. Note that the θ t- and x-axes are tangent to the path, and the -axis is normal to the radial r-direction.
Net present value of project with initial cost : What is the net present value of a project with an initial cost of $36,900 and cash inflows of $13,400, $21,600, and $10,000 for Years 1 to 3, respectively? The discount rate is 13 percent.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Computation of annual value-present value of cash flow

The cash flow for an engineering project is given below:

  At the start of july classic car wax company had beginning

at the start of july classic car wax company had beginning work in process of 2500 units that were 90 completed with

  What contemporary factors contribute to internationalization

What contemporary factors are contributing to the internationalization of the subject of Finance and What contemporary factors are contributing to the internationalization of the subject of Finance?

  What is the percentage margin the company will realize

If the UK pound appreciates against the USD to an exchange rate of $2.15/£, and Jaguar has not hedged against currency changes, what is the percentage margin the company will realize given the new exchange rate?

  If debt is used to buy the truck barnaby can borrow at 8

your employer barnaby well company is considering the acquisition of a new drill truck and your boss has asked you to

  The higher the firms flotation cost for new common equity

the higher the firms flotation cost for new common equity the more likely the firm is to use preferred stock which has

  How does each branch of the government support

How does each branch of the government support each other?

  Suppose now the book value of the debt issue is 50 million

moldova beef farm issued a 25-year 9 percent semi-annual bond 7 years ago. the bond currently sells for 108 percent of

  What is the implicit cost of the trade credit

Sybex Corp. sells its goods with terms of 3/8 EOM, net 30. What is the implicit cost of the trade credit?

  What is the current share price

Apocalyptica Corp. pays a constant $8.30 dividend on its stock. The company will maintain this dividend for the next 14 years and will then cease paying dividends forever. If the required return on this stock is 12 percent, what is the current sha..

  Tinbergen cans expects sales next year to be 30000000

tinbergen cans expects sales next year to be 30000000. inventory and accounts receivable combined will increase 4000000

  What is the horizon value

If these values remain constant, what is the horizon value(i.e. the 2016 value of operations)?

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