Semi-annual coupon bond with a par value

Assignment Help Financial Management
Reference no: EM13723808

A 7-year, 11.00% semi-annual coupon bond with a par value of $1000 may be called in 5 years at a call price of $1,155.00. The bond sells for $970.50. (Assume that the bond has just been issued.). What is its yield to maturity?

Please show work

Reference no: EM13723808

Questions Cloud

A balance sheet shows a total of no callable : A balance sheet shows a total of no callable $41 million long-term debt with a coupon rate of 8.10% and a yield to maturity of 8.50%. This debt currently has a market value of $52 million. The balance sheet also shows that the company has 9 million s..
What is maximum price you should be willing to pay for bond : Assume that you are considering the purchase of a 11-year, no callable bond with an annual coupon rate of 8.60%. The bond has a face value of $1000, and it makes semi-annual interest payments. If you require an 11.70% yield to maturity on this invest..
Describe any one concept that you heave learned : For this week's learning activity, choose and describe any one concept (PESTEL analysis) that you heave learned in this class and that you feel is applicable to your work
To pay for her college education : To pay for her college education, Gina is saving $2,000 at the beginning of each year for the next eight years in a bank account paying 12 percent interest. How much will Gina have in that account at the end of 8th year?
Semi-annual coupon bond with a par value : A 7-year, 11.00% semi-annual coupon bond with a par value of $1000 may be called in 5 years at a call price of $1,155.00. The bond sells for $970.50. (Assume that the bond has just been issued.). What is its yield to maturity?
Apple next products- is a new strategy needed : Apple's Next Products: Is a New Strategy Needed, Based on the video http://www.youtube.com/watch?v=glnTz5HD05U, fast forward to current day
What is the best estimate of the current stock price : A company paid $1.65 dividend yesterday. Its dividend growth rate is expected to be constant at 22.40% for 2 years, after which dividends are expected to grow at a rate of 6.85% forever. Its required return (rs) is 10.55%. What is the best estimate o..
Define emergent strategies of competitive organizations : Select a company of your choice and imagine you are Vice President of Research and Development. You will be presenting your R&D findings concerning the deliberate and emergent strategies of competitive organizations
Two popular approaches used by automobile dealers : The following are two popular approaches used by automobile dealers: (a) Cash Rebate Versus Low Rate Dealer Financing You are given two mutually exclusive options from the dealer on a $20,000 car: (i) $1,500 cash rebate or (ii) 36-month low rate loan..

Reviews

Write a Review

Financial Management Questions & Answers

  What are the ethical issues

What are the ethical issues?

  Determine what is the current value of the lease

Payments are due on the first day of each month starting with the day you sign the lease contract. If your cost of money is 4.9 percent, what is the current value of the lease

  Today is february 1 henry the financial manager of mesa

today is february 1. henry the financial manager of mesa mines inc. is looking at the budget for next year. mesa is a

  Ratio analysiscalculate the current ratio quick ratio cash

ratio analysiscalculate the current ratio quick ratio cash to current liabilities ratio over a two-year period.

  What does anyone think about the deficit issues

What does anyone think about the deficit issues in the EU and the affect on interest rates and several of the countries in the world today we can see the effects of continued deficit spending and the results that are currently taking place

  Network communications systems to computer users

The Neptune Company offers network communications systems to computer users. The company is planning a major investment expansion but is unsure of the correct measure of equity capital as it has no traded equity. Your job is to determine the basis of..

  Bonds make semi-annual payments

Hollin Corporation has bonds on the market with 23.5 years to maturity, a YTM of 7 percent, and a current price of $1,051. The bonds make semi-annual payments. What must the coupon rate be on these bonds?

  Assume that sales-operating costs and total assets

Last year Hamdi Corp. had sales of $500,000, operating costs of $450,000, and year-end assets of $355,000. The debt-to-total-assets ratio was 17%, the interest rate on the debt was 7.5%, and the firm's tax rate was 35%. The new CFO wants to see how t..

  Analyze the financial statements

Analyze the financial statements (for the most recent complete year) based on the factors outlined - Description of the main products/services that the company provides

  Examples of a financial merger and an operating merger

Explain the difference between and give examples of a financial merger and an operating merger and explain the difference and offer an example of each - a joint venture and a merger.

  What must the risk-free rate be

A stock has an expected return of 14 percent, a beta of 1.70, and the expected return on the market is 10 percent. What must the risk-free rate be? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

  Does this change have an impact on their decision

Recalculate the NPV assuming the machine press can only be sold for $45,000 at the end of year four.  Does this change have an impact on their decision?

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