Calculate the yield to maturity on the bonds

Assignment Help Financial Management
Reference no: EM131446300

Calculate the yield to maturity on the following bonds.

a. A 9.1 percent coupon (paid semiannually) bond, with a $1,000 face value and 16 years remaining to maturity. The bond is selling at $980. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161))

Yield to maturity % per year  

b. An 8.1 percent coupon (paid quarterly) bond, with a $1,000 face value and 10 years remaining to maturity. The bond is selling at $910. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161))

Yield to maturity % per year  

c. An 11.1 percent coupon (paid annually) bond, with a $1,000 face value and 6 years remaining to maturity. The bond is selling at $1,060. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161))

Yield to maturity % per year

Reference no: EM131446300

Questions Cloud

Discuss two human growth and development theories : Discuss 2 human growth and development theories that have been supported by research. Discuss 1 theory that has continued to be examined but has no empirical support. In addition, discuss what research is suggesting about the importance of spiritu..
Identify sources of long-term financing for genesis energy : Identify the sources of long-term financing for Genesis Energy. Analyze the potential costs and benefits of each option. Explain how relative risk (from the investor's perspective) impacts the cost of capital for Genesis Energy.
Draw eight lines from that bordered word : Draw eight lines from that bordered word. At the end of each line, write a word that is related to the object word in the middle.
Prepare assumptions that will drive the planning process : Evaluate historical data and prepare assumptions that will drive the planning process. Produce a detailed 2 year cash budget that summarizes cash inflow, outflow, and financing needs.
Calculate the yield to maturity on the bonds : Calculate the yield to maturity on the following bonds. A 9.1 percent coupon (paid semiannually) bond, with a $1,000 face value and 16 years remaining to maturity. The bond is selling at $980.
Evaluate the concrete benefits of indian educational program : Evaluate the concrete benefits of Indian educational programs that promote heritage language proficiency and cultural connection, through bilingual or immersion programs such as the Salish school of Spokane.
Describe the types of innovations or improvements that have : Describe the types of innovations or improvements that have come from involving the target customer in supply chain. Describe the types of information technology mechanisms that have been used to involve the customer in the supply chain.
Financial analysts forecast limited brands growth : Financial analysts forecast Limited Brands (LTD) growth for the future to be 13.8 percent. LTD’s most recent dividend was $2.40. What is the fair present value of Limited Brands’s stock if the required rate of return is 16.5 percent?
Discuss the similarities and differences in the films : "Compare and contrast" means you should discuss the similarities and differences in the films. As such, both films should get roughly equal coverage. Essays should be clear and concise, as well as demonstrate a solid understanding of the concepts ..

Reviews

Write a Review

Financial Management Questions & Answers

  Find the hedge ratio for a call option

Find the hedge ratio for a call option on £10,000 with a strike price of €15,000. The current exchange rate is €1.50/£1.00 and in the next period the exchange rate can increase to €2.40/£ or decrease to €0.9375/£. The current interest rates are i€ = ..

  The annual cash flows and the terminal cash flow

You have decided that Greenville needs a new lounge to appeal to the older crowd. It will feature live blues musicians, appetizers, and a well-stocked bar. You are trying to decide whether you should invest in this venture. Prepare a capital budgetin..

  What is the yield to maturity of bond

A Japanese company has a bond outstanding that sells for 93 percent of its ¥100,000 par value. The bond has a coupon rate of 6 percent paid annually and matures in 16 years. What is the yield to maturity of this bond?

  Makes some profit and does not pay dividend

In a year, a business makes some profit and does not pay dividend. which of the following will reduce the retained earnings. use the retained earnings to buy a machine. use the retained earnings to buy back some of its own shares and retire the share..

  What is the required return

Rabie, Inc., has an issue of preferred stock outstanding that pays a $3.80 dividend every year, in perpetuity. If this issue currently sells for $78.45 per share, what is the required return?

  Where did ethics reflected in your article

Select an article that has been written within the last 12 months. It may come from a popular business periodical/magazine. Describe the value this article offers to those who truly aspire to enter into the business world in an ethical manner. Where ..

  About the monthly payment

You want to buy a new sports car from Muscle Motors for $68,000. The contract is in the form of a 72-month annuity due at an APR of 6.75 percent. What will your monthly payment be?

  Portfolio containing several individual stocks

You are assigned the task of computing the expected return on a portfolio containing several individual stocks. Which one of the following statements is correct concerning this task?

  What is the outcome of hedge

Summarize the steps you would take to hedge against interest rate risk. What is the outcome of a hedge? Comment on the statement: “When you hedge you neither make nor lose money”

  Demonstrat ing the potential risk from financing

Discuss the pros and cons of financing in unhedged Eurodollars instead of via Euroeuros. As you do this you must give consideration to the foreign exchange risks associated with financing in Eurodollars.

  What is the macaulay duration of coupon bond

What is the Macaulay duration of a 6.2 percent coupon bond with five years to maturity and a current price of $1,064.70? What is the modified duration?

  What is your arithmetic average return

You purchased 300 shares of Ripon Inc. stock 5 years ago and have earned annual returns of 12.4 percent, 22.1 percent, 6.4 percent, -22.3 percent, and 8.8 percent. What is your arithmetic average return?

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