Determine the current yield on corporate bond investment

Assignment Help Financial Management
Reference no: EM131300301

Determine the current yield on a corporate bond investment that has a face value of $1040, pays 4 percent, and has a current price of $1320. Convert your answer to a percent, then round to 1 decimal place (i.e. 1.3 2.4). Do not include the "%" sign in your response.

Reference no: EM131300301

Questions Cloud

What was the flotation cost as a percentage of funds raised : The Wiley Oakley Co. has just gone public. Under a firm commitment agreement, Wiley Oakley received $21.75 for each of the 6.66 million shares sold. The initial offering price was $23.60 per share, and the stock rose to $30.11 per share in the first ..
What is the annual percentage return on investment : Suppose GM is considering buying a plant in Hungary. All sales will be to Hungarian customers and denominated in forints. What is the total investment in dollars? Once the plant is up and running, what is the annual percentage return on investment? I..
Expect the euro to rise from its present rate : You manufacture wine goblets. In mid-June, you receive and order for 10,000 goblets from Europe. Payment of €400,000 is due in mid-December. You expect the €uro to rise from its present rate of $1=€1.5, to a rate of $1=€1.4 by December. What should y..
What should the one year forward exchange rate : Two countries, Britain and the U.S. produce just one good, beef. Suppose that the price of beef in U.K. is £2.80 per pound, and in US, it is $3.70 per pound. What should the $/£ spot exchange rate be, according to PPP theory? Suppose that the price o..
Determine the current yield on corporate bond investment : Determine the current yield on a corporate bond investment that has a face value of $1040, pays 4 percent, and has a current price of $1320. Convert your answer to a percent, then round to 1 decimal place (i.e. 1.3 2.4). Do not include the "%" sign i..
Interest in short-term financial management : The financial crisis _____ interest in short-term financial management? Suppose a project has conventional cash flows (means only one cash outflow/ outlay in the beginning) and a positive NPV. What could you say:
What yield to maturity is bond offering : A 7.45 percent coupon bond with 14 years left to maturity is offered for sale at $1,015.00. What yield to maturity is the bond offering? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)
Motives for holding cash concerns managers ability : Which of the following motives for holding cash concerns managers’ ability to take advantage of unexpected positive NPV investments when they arise? a) Transaction motive b) Precautionary motive c) Speculative motive d) Agency motive.
Reduce its dividend growth rate : Storico Co. just paid a dividend of $1.85 per share. The company will increase its dividend by 24 percent next year and will then reduce its dividend growth rate by 6 percentage points per year until it reaches the industry average of 6 percent divid..

Reviews

Write a Review

Financial Management Questions & Answers

  Describe the importance of predicting the long-term value

Explain the importance of predicting the long-term value and price of currency in your chosen country. Determine the relevant factors and indicators for currency forecasting in your selected country.

  Resulting cash flows item notes initial cash flow

A 100,000 loan agreement has payments and inputs as follows. Calculate the XNPV, XIRR, NPV and IRR of the resulting cash flows Item Notes Initial Cash Flow (PV) 10,000.00 Start Date 01-Jan-2008 Interval (Months) 6 Year One 1,000.00 Year Two 1,500.00 ..

  What is weight of each stock in minimum variance portfolio

Consider two stocks, Stock D, with an expected return of 21 percent and a standard deviation of 37 percent, and Stock I, an international company, with an expected return of 7 percent and a standard deviation of 17 percent. The correlation between th..

  Assessment of the most profitable strategy

In a short research paper, compare and contrast a chosen LCC with a full-service airline using Doganis’ 5 key product features as a framework (price, schedule, comfort, convenience, and image). Choose one or two city-pairs served by both carriers on ..

  Compute the eac for both machines

You are evaluating two different silicon wafer milling machines. The Techron I costs $261,000, has a three-year life, and has pretax operating costs of $70,000 per year. use straight-line depreciation to zero over the project’s life and assume a salv..

  About the current exchange rate

You are currently living in France and your job pays you in Euro (€). You want to buy a new MacBook that costs €1,500 in France, and costs $1500 in the U.S. If the MacBook is purchased in the U.S., shipping to France and currency exchange fees amount..

  Who bears the economic incidence of given tax

Who bears the statutory incidence of a $2 per unit tax on the sale of rutabagas? - Who bears the economic incidence of this tax?

  Calculate its weighted average cost of capital

Your firm is considering a new investment proposal and would like to calculate its weighted average cost of capital. To help in this, compute the cost of capital for the firm for the following: A bond that has a $1,000 par value (face value) and a co..

  Evaluating capital budgeting project

Kristin is evaluating a capital budgeting project that should last for 4 years. The project requires $800,000 of equipment. She is unsure what depreciation method to use in her analysis, striaght-line or the 3-year MACRS accelerated method.

  Cash price of gold-is there an arbitrage opportunity

Suppose on today, October 31, the cash price of gold is $270 (per ounce) the price of December gold futures contract, expiring on December 31, is $285. The annualized lending/borrowing rate is 5%/7% and the annualized cost of storing gold is 2%. Is t..

  International workforce and its impact on strategy

The workforce management is far more complicated in companies with operations in multiple countries than their domestic counterparts. There are political, economic, social-cultural, technological, and legal issues that add substantial challenges t..

  Deduct entire amount of interest which was paid on home loan

In 2009, Mr. Smith purchased a principal residence for $1,500,000. He made a down payment of $300,000 and financed the remainder by borrowing $1,200,000 through a loan secured by the residence. In 2009, Mr. Smith paid interest that accrued on the ind..

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