Bond's capital gain yield, Financial Management

A 10-year, 12% semi-yearly coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,050. The bond sells for $1,050. (Suppose that the bond has just been issued.)

a.            What is the bond's yield to maturity?

b.            What is the bond's present yield?

c.             What is the bond's capital gain/loss yield?

d.            What is the bond's yield to call?

 

Posted Date: 3/30/2013 2:00:44 AM | Location : United States







Related Discussions:- Bond's capital gain yield, Assignment Help, Ask Question on Bond's capital gain yield, Get Answer, Expert's Help, Bond's capital gain yield Discussions

Write discussion on Bond's capital gain yield
Your posts are moderated
Related Questions
Normally, floater coupon rate moves in the same direction as the reference rate. That is, with an increase in the reference rate, the floater coupon rate also increases

Credit analysis Assessment of creditworthiness depends on the examination of information relating to the new customer. This information is frequently generated by a third party

How do I calculate the average return for T over a five year period?

Balance Sheets Peony Ltd. Aster Ltd. Assets: Cash $ 62,500 $ 25,000 Accounts receivable 187,500 200,000 Inventori

how to calculate cost of equity

What do financial managers look for when they analyze pro forma financial statements? Later than the pro forma financial statements are complete, financial managers analyze the f

BAGS, Inc. is considering an investment in a new project. The required investment is $1,000,000. After-tax net cash flows are expected to be $50,000 the first year and are expected

Regulatory Aspect Employees Provident Fund Organization (EPFO) is under the Ministry of Labor and is a primary organization for retirement income for private employees in India

How is a country’s economic well-being enhanced through free international trade in goods and services? As per to David Ricardo, with free international trade, it is mutually adv

Activity Ratio's   RT:           The Receivables Turnover ratio is the ratio between sales to accounts receivables. This says exactly how fast a company can collect on the s