Annual coupon rate paid semi annually

Assignment Help Financial Management

Reference no: EM13870711

A few years ago Spider Web INC issued bonds with a 8.23 percent annual coupon rate paid semi annually. The bonds have a par value of $1000 a current price of $1092 and will mature in 20 years. What would the annual yield to maturity be on the bond if you purchased a bond today? Round the final answer to two decimal places in percentage form.

Reference no: EM13870711

Previous Q& A

New issue of preferred stock

E-Eyes.com has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first dividend will not be paid until 20 years from today. If you require a 11.00 percent return on this stock, how much shoul..

What is the current market price of the bond

Fresh water inc sold an issue of 22 year $1000 par value bonds to the public. The bonds have a 7.47 percent coupon rate and pay interest annually. The current market rate of interest is 12.85 percent. What is the current market price of the bond?

What would help diminish your fear of employee flight

As CEO of an emerging tech company, you feel the company has almost all of the connections in place for a major breakthrough, but you fear some of your key employees are getting nervous about their security. What would help diminish your fear of empl..

Use the time value of money concept

Mercy Hospital is considering shifting its payroll period from twice a month to monthly. Total payroll for the year is $80 million. Billings can earn 6% on its invested money. How much would the Mercy Hospital save from such a change? (Hint: Use the ..

Depreciate against the dollar from its spot rate

You expect that the INR will depreciate against the dollar from its spot rate of $.0.15 to $.0.125 in 60 days. The following interbank lending and borrowing rates exist: How can you profit from the above given information. Estimate the profits that c..

Traditional captive insurance arrangement

What is the difference between a serial LLC sponsored captive arrangement and the traditional captive insurance arrangement?

Ordering costs and carrying costs at economic order quantity

Hope for Life, a not-for-profit entity uses 40,000 boxes of paper every year. The boxes cost $4 each. The cost to process a purchase order is $25, and the inventory holding cost is $0.50 per unit per year. Based on these information, the total of the..

Determine the probability of incurring loss from investing

The expected return and standard deviation of returns of General Mills common stock over the next year are estimated to be 20 percent and 12 percent, respectively. Assume that the returns are approximately normally distributed. Determine the probabil..

What is the bond price if the yield to maturity increases

A $1,000 face value bond of Acme Inc. pays an annual coupon, carries a coupon rate of 7.25%, has 31 years to maturity, and sells at a yield to maturity of 6.45%. (a) What interest payments do bondholders receive each year?(b) At what price does the b..

Determine the net gain from covered position

Mammoth Mutual Fund of New York has $10 million to invest in certificates of deposit (CDs) for the next 6 months (180 days). It can buy either a Pittsburgh National Bank (PNB) CD with an annual yield of 11 percent, or a Swiss bank CD with a yield of ..

Reviews

Write a Review

Message

Similar Q& A

Attempting to fund

Assume that you are attempting to fund a $50,000,000 liability associated with the clean-up of an environmental site that will be due in seven years. If you don't meet the liability you will be out of business.

What does bill believe the inflation rate

An investment offers a 15.5 percent total return over the coming year. Bill Bernanke thinks the total real return on this investment will be only 6.5 percent. What does Bill believe the inflation rate will be over the next year?

Financial statements related to cash and cash equivalents

Select a publicly held company to use as the basis for this assignment. analyzing the disclosures contained within the notes to the financial statements related to cash and cash equivalents, receivables, and inventories

What is the current value of share of stock to investor

General Cereal common stock dividends have been growing at an annual rate of 7 percent per year over the past 10 years. Current dividends are $1.70 per share. What is the current value of a share of this stock to an investor who requires a 12 percent..

Different ways one can mitigate exchange rate risk

Is there really any difference between the different ways one can mitigate exchange rate risk? If so, is one form of exchange rate risk mitigation superior to another?

Equity markets are efficient

Based on what you have learned so far this semester (Investments-Bodie, Kane, Marcus), do you believe that U.S. equity markets are efficient? Explain.

tax rate-Computer-based order entry system

Your firm is contemplating the purchase of a new $660,000 computer-based order entry system. The system will be depreciated straight-line to zero over its six-year life. It will be worth $51,000 at the end of that time.

What were the dividends paid by the firm

The year-end 2010 balance sheet of Brandex Inc. listed common stock and other paid-in capital at $3,000,000 and retained earnings at $5,300,000. The next year, retained earnings were listed at $5,600,000. The firm’s net income in 2011 was $1,090,000...

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!

Submit Assignment

User Account

All Pages