Computing the effective yield of discount bond

Assignment Help Finance Basics
Reference no: EM13828126

Problem:

A discount bond has a face value of $10000 and promises repayment at the end of 15 years and has a market price of $3541. What is its effective yield?

Additional Information:

This question is from Finance as well as it is about computing the effective yield of discount bond which promises repayment at the end of 15 years. The solution has the computation to this problem.

Reference no: EM13828126

Questions Cloud

Lessening the negative impact of border control activities : Lessening The Negative Impact Of Border Control Activities
Positive and negative effects of border control activities : Positive And Negative Effects Of Border Control Activities
Discuss technology diffusion s-curves and innovation : Discuss technology diffusion, S-Curves and innovation decision process. I will use the healthcare industry as an example. Our healthcare system is ever evolving - new technologies, insurance models, and information systems are shaping the system o..
Improving purchasing performance by strategic relationship : Improving Purchasing Performance By Strategic Relationship
Computing the effective yield of discount bond : A discount bond has a face value of $10000 and promises repayment at the end of 15 years and has a market price of $3541. What is its effective yield?
Calculation annuity to be paid to an insurance policy : An individual has accumulated some wealth in a self-administered stock market investment fund and now wants to cash in (or liquidate) a part of this fund and use it to purchase an annuity from an insurance company that will pay her $65000 annual b..
Calculation of current yield of government : What is the current yield on government bond, issued exactly five years ago, that has a current market price of $5866 and pays an annual coupon payment of $350, and matures at the end of 4 years, when the face value of $5000 will be paid?
Importance of financial statements in an organization : Explain the importance of financial statements in relation to reporting organizational performance, how such financial statements link together, and the information that they provide for managers.
Find the most convincing piece of evidence : About how astronomers have come to the conclusion that the Big Bang is how the universe began. What do you find the most convincing piece of evidence in support of the Big Bang theory?

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain how some mortgage operations by some commercial bank

Explain how some mortgage operations by some commercial banks (along with other financial institutions) played a major role in instigating the credit crisis

  Risk aversion-risk-free investmentsquestion 1 write a short

risk aversion-risk-free investmentsquestion 1 write a short essay for each of the following questions. where possible

  How long do you have to wait to become a millionaire

You have just won $120,000 from a contest. If you invest the whole $120,000 in a tax-free money market fund earning 6% compounded weekly, how long do you have to wait to become a millionaire? Round to 2 decimal places.

  What are the firm income tax liability

What are the firm's income tax liability and its after-tax income? What are the company's marginal and average tax rates on taxable income?

  What must be the forward price of the pound

Assume the spot price of the British pound is currently $1.7. If the risk-free interest rate on 1-year government bonds is 5.4% in the United States and 7.5% in the United Kingdom, what must be the forward price of the pound for delivery 1 year fr..

  Abc corp earned 700 per share last year the company plows

abc corp earned 7.00 per share last year. the company plows back 35 of its earnings into projects yielding 18.

  Under the miller model what is the value of the levered

an unlevered firm has a value of 600 million. an otherwise identical but levered firm has 240 million in debt. under

  What are the options for acting evaluate the options by

read the course document on ethics and leadership analysis and application. the ethics and leadership analysis and

  Regression mastery problem - session 5 a senior financial

regression mastery problem - session 5 a senior financial analyst with ace gadgets ag is attempting to get a better

  According to the federal reserve what is the most important

go to www.federalreserve.govgeneral.htmlthttpwww.federalreserve.govgeneral.htmgt and click on the link to general

  Computaion of yield to maturity on bond

Computaion of yield to maturity on bond and Calculate the annual return if you sell the bond at that time

  Interest rates on all debt securities in the economy

Which of the following would be most likely to lead to higher interest rates on all debt securities in the economy?

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