What is the annual yield to maturity on the bond

Assignment Help Financial Management
Reference no: EM13728557

Family shop in has a 1000 dollar par value bond that is currently selling for $1146.87. It has an annual coupon rate of 8.65% paid semi annually and has 15 years remaining until maturity. What is the annual yield to maturity on the bond if you purchased the bond today and hold it until maturity? Show work

7.05%

6.24%

13.92%

11.29%

Reference no: EM13728557

Questions Cloud

What is current price of bond-zero-coupon bonds with value : Dark night inc just issued zero-coupon bonds with a par value of $1000. The bond has a maturity of 11 years and a yield to maturity of 9.64% compounded semi annually. What is the current price of the bond.
What is the minimum expected annual return for stock : In order to fund her retirement, Michele requires a portfolio with an expected return of 0.10 per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Stock 2, and 25 percent in Stock..
Assignment on evaluation of business operations : You are the human resources (HR) manager for a public organization and you are conducting a New Hire Orientation session for all new employees. Last week, you analyzed the organization, including its strengths and weaknesses, as well as its missio..
Discuss the marketing plan insights p&g : Discuss the marketing plan insights P&G has gained through its Vietnamese marketing studies. How influential are those discoveries in the development of P&G's strategy to enter the Vietnamese market
What is the annual yield to maturity on the bond : Family shop in has a 1000 dollar par value bond that is currently selling for $1146.87. It has an annual coupon rate of 8.65% paid semi annually and has 15 years remaining until maturity. What is the annual yield to maturity on the bond if you purcha..
Explain a basic measurement system : Explain a basic measurement system and explain the basic working principles of a variety of temperature sensors.
Explain why was freedom defined differently by freedpeople : How and why was freedom defined differently by freedpeople, Democrats, and Republicans? Who, or what, ultimately had the power to win the 'debate' and control how freedom would be defined for all?
Developing a market competitive pay system : Discuss the basic building blocks of developing a market competitive pay system, including the relationship between internal and external equity.
Provide a brief overview of the product : Provide a brief overview of the product for which you are going to write your Marketing Plan. Why did you choose it

Reviews

Write a Review

Financial Management Questions & Answers

  Perform analysis of advertising strategy for midtown motors

Midtown's president believes the television station will consider running the Midtown spot announcement on its highly rated evening news program (at the same cost) if Midtown will consider using additional television announcements.

  Prepare the consolidated financial statements

Prepare all consolidation adjustment entries required to prepare the consolidated financial statements as at 30 June 2011.  Provide a brief heading for each adjustment that you prepare.

  Whats wrong with using payback period

How can options sell for more than their exercise value and whats wrong with using payback period? What should we use instead? Why?

  What coupon rae would bonds have to pay to be issued at par

Chapman has a coupon rate of 9.63 it maturity 01/01/2042 Last price was $95.09 Lasst yield is 10.15% ESt spread is 7.15 UST is 30 years Est Volume is 65,275. If Chapman wants to issue new 30 year bonds today, what coupon rae would the bonds have to p..

  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.

  Forms of organizations is easiest to form-corporation

Which of the following forms of organizations is the easiest to form? Which of the following is a strength of a corporation? The 2002 law that established the Public Company Accounting Oversight Board (PCAOB) was called ________.

  Not-for-profit acute care facility

General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services:

  Explain investor purchasing the rights to royalties

Royalty payments arrive once per year, starting one year from now. In the first year, the author expects $400,000 in royalties, followed by $300,000, then $100,000, then $10,000 in the three subsequent years.

  The discussion board db is part of the core of online

the discussion board db is part of the core of online learning. classroom discussion in an online environment requires

  Minority shareholders

Comment on the following quote:"... agency problems do not mean that the corporate firm will not act in the best interest of shareholders, only that is costly to make it do so. However, agency problems can never be perfectly solved ..."

  Which of the three right side components of the dupont

If you were a manager of a company, which of the three right side components of the DuPont Identity would you want to increase and which would you want to decrease, other things being equal? Give a specific example for how to do that for each of the ..

  Spot and six-month forward rates on the norwegian krone

Suppose the spot and six-month forward rates on the Norwegian krone are Kr6.36 and Kr6.56, respectively. The annual risk-free rate in the United States is 4.5 percent, and the annual risk-free rate in Norway is 7 percent. What would the six-month for..

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