### Price and yield problem

Assignment Help Financial Management
##### Reference no: EM13725497

Price and yield

An 6% semi-annual coupon bond matures in 5 years. The bond has a face value of \$1,000 and a current yield of 6.8307%.

What is the bond's price? Round your answer to the nearest cent.

\$

What is the bond's YTM? (Hint: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.) Round your answers to two decimal places.

%

#### Questions Cloud

 This debt must be repaid in two equal instalments : Digital Organics (DO) has the opportunity to invest \$0.98 million now (t = 0) and expects after-tax returns of \$580,000 in t = 1 and \$680,000 in t = 2. The project will last for two years only. The appropriate cost of capital is 14% with all-equity f.. Financial position postion and statement of activities : Exhiibits 14-8 and 14-9 presents the statement of financial position postion and statement of activities and statements of activities for the disabled veterans (Day) charitable Service Trust. For both 2007 and 2006, calculate:common size ration.. What is the expected market value of a bond : What is the expected market value of a bond that has 5 years to maturity, a yield of 6.5% a coupon rate of 7.5%, a cost basis of 10354.18 and a fair market value of 10,000? The bond pays interest semi-annually. Variable and direct fix cost basic exam variable cost : What is the fee schedule for these service assuming goal to cover only one variable and direct fix cost basic exam variable cost \$5 annual direct fix cost 50,000 annual number of visits, advance exam 7 annual direct fix cost 30,000 annual number .. Price and yield problem : An 6% semi-annual coupon bond matures in 5 years. The bond has a face value of \$1,000 and a current yield of 6.8307%. What is the bond's price? Round your answer to the nearest cent. Hateem starts to invest the money at the beginning : Currently plans to invest \$1,800 in the Shariah compliance stock market. In average he earns 10% per year on his stocks. What will be the amount after 30 years if Hateem starts to invest the money at the beginning of each year? How much cash would be freed up : Sun has maintained the same inventory levels throughout 2014. If end of year inventory turnover was increased to 11 through more efficient relationships with suppliers, how much cash would be freed up (round off to the nearest dollar) Yield to maturity and future price : A bond has a \$1,000 par value, 10 years to maturity, and a 8% annual coupon and sells for \$980. What is its yield to maturity (YTM)? Round your answer to two decimal places. Bond issue outstanding with an annual coupon : Potter Industries has a bond issue outstanding with an annual coupon of 6% and a 10-year maturity. The par value of the bond is \$1,000. If the going annual interest rate is 9%, what is the value of the bond?

### Write a Review

#### 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?

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.