Compute the bond current yield

Assignment Help Accounting Basics
Reference no: EM131662062

Question - A 5.5% coupon municipal bond has 16 years left to maturity and has a price of 92.55. The bond can be called in 9 years. The call premium is one year of coupon payments. Compute the bond's current yield. Assume semiannual interest payments and a par value of $5000.

Reference no: EM131662062

Questions Cloud

Strengths and weaknesses : In relation to your project idea, contemplate each of the categories below for strengths and weaknesses and what opportunities.
Design efficient algorithms that take an array : Design efficient algorithms that take an array of positive numbers a, and determine-The maximum value of a[j]+a[i], for j i.
Give input into that or your current job description : Have you had a chance to give input into that or your current job description?
Consider the learner characteristics : Consider the learner characteristics. Specifically, evaluate the degree to which the program addresses the following learner characteristics:
Compute the bond current yield : The bond can be called in 9 years. The call premium is one year of coupon payments. Compute the bond's current yield
Developing diversity consciousness-internet assignment : Write summary of a minimum of hunred words in which you discuss global racism and what people are doing to combat it.
Maximum number of times that an arraylist capacity increased : Suppose that when the capacity of an ArrayList is increased, it is always doubled. If an ArrayList stores N items, and started with an initial capacity of 1.
What types might call for internal recruiting : What types of business strategies might be best supported by recruiting externally and what types might call for internal recruiting?
Freezing of a dead person : Is the freezing of a dead person's (under 18 years old) eggs or sperm an ethical issue or dilemma?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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