What is its current yield

Assignment Help Financial Management

Reference no: EM131087716

A bond with a par value of $1,000.00 and a semiannual coupon has a nominal yield to maturity of 6.60% and a current price of $1,035.00. If the bond has 8 years to maturity, what is its current yield?

Reference no: EM131087716

Questions Cloud

When you hedge you neither make nor lose money : Summarize the steps you would take to hedge against interest rate risk. What is the outcome of a hedge? Comment on the statement: “When you hedge you neither make nor lose money”

Capital structure consisting : Sand Key Development Company has a capital structure consisting of $20 million of 10% debt and $30 million of common equity. The firm has 500,000 shares of common stock outstanding. Sand Key is planning a major expansion and will need to raise $15 mi..

What should be the increase in earnings per share : Last year, Cayman Corporation had sales of $30,000,000, total variable costs of $13,500,000, and total fixed costs of $5,000,000. In addition, they paid $3,000,000 in interest to bondholders. Cayman has a marginal tax rate of 35 percent. If Cayman's ..

An overall positive effect on short-term profits : Competency 4.2 Mark Johnson is controller for a Pharmaceutical company. During the company’s midyear review, Johnson notes that the company’s R&D expenditures are already $3.0 billion, nearly 40% above the midyear target. In a meeting with the CFO la..

What is its current yield : A bond with a par value of $1,000.00 and a semiannual coupon has a nominal yield to maturity of 6.60% and a current price of $1,035.00. If the bond has 8 years to maturity, what is its current yield?

New high-efficiency digital-controlled flange-lipper : The Everly Equipment Company's flange-lipping machine was purchased 5 years ago for $90,000. It had an expected life of 10 years when it was bought and is being depreciated by the straight-line method by $9,000 per year. A new high-efficiency digital..

The gamma and vega of delta-neutral portfolio : The gamma and vega of a delta-neutral portfolio are 75 per $ and 15 per %, respectively. What will happen to the value of the portfolio when there is a shock to the market causing the underlying asset price to decrease by $4 and its volatility to inc..

Replacing the wood steamer : The Gilbert Instrument Corporation is considering replacing the wood steamer it currently uses to shape guitar sides. The steamer, purchased just 2 years ago, is being depreciated on a straight-line basis and has 6 years of remaining life. Should it ..

Purchasing of medicines already on the market : What negative impact did Martin Shkreli's practice of reverse mergers and purchasing of medicines already on the market, only to sell them at higher prices have?

User Account

All Pages