Current price of the bond-coupon yield-capital gain yield

Assignment Help Financial Management
Reference no: EM131610489

A bond has 44 years to maturity, a coupon rate of 13.8%, and a face value of $1,000. The yield to maturity is 6.8%. Assume annual compounding. What is the current price of the bond, the coupon yield, and the capital gain yield Also, what will be the price of the bond when it has 33 years to maturity (one year from today) and what is the percentage increase/decrease in price during the year (Note: use negative signs to indicate decreases and assume that the yield to maturity will remain constant over the one-year period.)

The price of the bond is $ . ?(Round to the nearest cent.)

The coupon yield of the bond is %. (Round to four decimal places.)

The capital gain yield is %. (Round to four decimal places.)

The price of the bond one year later is $ nothing. ?(Round to the nearest cent.)

The percentage change in price is %

Reference no: EM131610489

Questions Cloud

What will the percentage change in operating cash flow be : What will the percentage change in operating cash flow be?
Support diverse base of customers : Global information systems must support a diverse base of customers, users, products, languages, currencies, and laws.
Explain prison warden effects on prison : The annotated bibliography must contain at least (3) valid scholarly sources in reference to your chosen topic. My topic is Prison Warden Effects On Prison
Discuss sub-national groups or clandestine agents : Premeditated politically motivated violence perpetrated against noncombatant targets by sub-national groups or clandestine agents
Current price of the bond-coupon yield-capital gain yield : What is the current price of the bond, the coupon yield, and the capital gain yield?
Who appears to be a pre-conventional moral reasoner : Identify one well-known person today (politician, celebrity, etc.) who appears to be a pre-conventional moral reasoner, and describe how they demonstrate this?
What is the net operating income : What is the net operating income earned by product Y25C according to the company's accounting system? Show your work!
Briefly describe your dream job with an organization : Briefly describe your dream job with an organization for which you would like to work. Create a benefits package for this position that is competitive.
Five inputs to any total value of money problem : What are the five inputs to any Total Value of Money (TVM) problem?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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