What is the bond coupon rate and bond current yield

Assignment Help Financial Management
Reference no: EM131056968

Given: Bond Face or Par Value: $1,000 Current Market Price: $995.34 Time to Maturity: 11 years Coupon: $30 per year, paid semiannually Bond is callable in five years at $1,030

a. What is the bond’s coupon rate?

b. What is the bond’s current yield?

c. What is the bond’s yield to maturity? (Use financial calculator to solve, list all keystrokes)

d. What is the bond’s yield to call? (Use financial calculator to solve, list all keystrokes)

Reference no: EM131056968

Questions Cloud

Discuss strategic analysis decisions in the next five years : Discuss strategic analysis decisions in the next five years, what we need to watch out for in the information technology (IT) field, and how these decisions will impact the overall company.
What was the dealer gain or loss on the change in rates : Crown Honda purchased one of its most popular motorcycle models for 965,000 yen. The FX rate for the yen was 142 yen per dollar at the time of purchase, but then rose to 171.8 yen by the time payment was made. What was the dealer’s gain or loss on th..
Calculate the firm the operating profit margin : Canadian Bacon Inc. financial statements are presented in the table below. Based on the information in the table, calculate the firm’s the operating profit margin.
Several milliliters of deionized water : During the titration several milliliters of deionized water are added to the Erlenmeyer flask containing the KHP solution. How will this affect the calculated concentration of NaOH (too high, too low, or unchanged?) Explain clearly.
What is the bond coupon rate and bond current yield : Given: Bond Face or Par Value: $1,000 Current Market Price: $995.34 Time to Maturity: 11 years Coupon: $30 per year, paid semiannually Bond is callable in five years at $1,030. What is the bond’s coupon rate? What is the bond’s current yield?
Concentration of ammonium cyanate : If a 0.50 M solution of ammonium cyanate is prepared at some initial time, t=0, what concentration of ammonium cyanate is left after 100 minutes?
Determine the values of the axial and tangential induction : This problem requires the application of the BEM iterative method. Students are recommended to write computer programs for solving problems of this type. (Stop the calculation after three iterations if solving manually.)
Find weights of debt and equity using the debt-equity ratio : Tattered Books has a WACC of 13.6 percent and a cost of equity of 16.1 percent. What is the after-tax cost of debt if the debt-equity ratio is 0.40? (Hint: First find the weights of debt and equity using the debt-equity ratio and then plug them into ..
Concentration in moles per liter of solution : Solution A is 3.15 M CaCl2. 110mL of solution A are diluted to 500. mL of solution B. 45.0 mL of solution B are diluted to 335. mL of solution C. What is the concentration in moles per liter of solution C?

Reviews

Write a Review

Financial Management Questions & Answers

  About the constant growth valuation

Woidtke Manufacturing's stock currently sells for $32 a share. The stock just paid a dividend of $2.25 a share (i.e., D0 = $2.25), and the dividend is expected to grow forever at a constant rate of 4% a year. What stock price is expected 1 year from ..

  Compute cost of capital for individual components

A-Rod Manufacturing Company is trying to calculate its cost of capital for use in making a capital budgeting decision. Mr. Jeter, the vice-president of finance, has given you the following information and has asked you to compute the weighted average..

  Suppose that the treasurer of ibm has an extra cash reserve

Suppose that the treasurer of IBM has an extra cash reserve of $ 100,000,000 to invest for six months. The six- month interest rate is 6 percent per annum in the United States and 5 percent per annum in France.

  What was your total real rate of return on this investment

Suppose you bought a bond with a coupon rate of 7.5 percent one year ago for $941. The bond sells for $949 today. If the inflation rate last year was 4 percent, what was your total real rate of return on this investment?

  About replacing an old computer with a new one

Suppose we are thinking about replacing an old computer with a new one. The old one cost us $1,280,000; the new one will cost, $1,540,000. The new machine will be depreciated straight-line to zero over its five-year life. Calculate the EAC for the ol..

  What is the firms target debt-equity ratio

The McGraw Distributors has a cost of equity of 14.4 percent and a pre-tax cost of debt of 8.6 percent. The firm's target weighted average cost of capital is 11.6 percent and its tax rate is 37.7 percent. What is the firm's target debt-equity ratio?

  What types generate the highest acquisition costs

What types of bank liabilities generate the highest servicing costs? What types generate the highest acquisition costs?

  What is the expected return on the mutual fund

Consider the following capital market: a risk-free asset yielding 0.75% per year and a mutual fund consisting of 70% stocks and 30% bonds. The expected return on stocks is 10.75% per year and the expected return on bonds is 3.25% per year. The standa..

  In what year will the loan balance go to zero

Kay Kinder has borrowed $500,000 at a nominal annual rate with monthly compounding of 6.50% to start a new company. The first payment on the loan will be at the end of year 1. In what year will the loan balance go to zero?

  Calculate your monthly mortgage payment

TVM. Recently, you purchased a house with a market value of $500,000. The loan terms include a 20% down payment, an annual interest rate of 7% and a term of 30 years. Calculate your monthly mortgage payment, assuming that payments are made at the end..

  What is the value of one share of this stock today

You own 200 shares of Loner, Inc. stock. The company has stated that it plans on issuing a dividend of $.20 a share one year from today and then issuing a final liquidating dividend of $1.60 a share two years from today. Your required rate of return ..

  About the family dispute

"Family Dispute." When Trudy and Mark married, they both had children from previous marriages. After their marriage, Trudy and Mark purchased a home together as tenants by the entirety and lived there for many years. Mark died when he was 93 and Trud..

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