What is the yield to call for bonds

Assignment Help Finance Basics
Reference no: EM131235633

Atlantis Fisheries issues zero coupon bonds on the market at a price of $447 per bond. These are callable in 10 years at a call price of $560. Using semiannual compounding, what is the yield to call for these bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Reference no: EM131235633

Questions Cloud

Difference between liquidity premium and a transaction cost : What is the difference between a liquidity premium and a transaction cost? - Is it better for the taxpayer to have a before-tax or an after-tax expense? Why?
Relate to making decisions in businesses and organizations : Understanding the value of information in today's society is more important for a person's career than at any other time in history. Equally important to valuing information is understanding the various types of information as they relate to making d..
Determining the dupont and roe : A firm has a profit margin of 7.5% and an equity multiplier of 2.5. Its sales are $500 million, and it has total assets of $300 million. What is its ROE? Do not round intermediate calculations. Round your answer to two decimal places.
Are some cultures more moral than others : Are there any universal moral standards or are all ethical principles a matter of custom and culture? Give examples of universal ethical principles if you believe they exist and why you think they are universal. If you do not believe universal et..
What is the yield to call for bonds : Atlantis Fisheries issues zero coupon bonds on the market at a price of $447 per bond. These are callable in 10 years at a call price of $560. Using semiannual compounding, what is the yield to call for these bonds?
What rate of return do equivalent muni bonds offer : If the marginal investor's tax rate is 30% and taxable bonds offer a rate of return of 6%, what rate of return do equivalent muni bonds offer?
What is the bottleneck device : What changes in CPU speed would you recommend to achieve a response time of 10 seconds with 25 users? Would you also need a faster disk A or disk B?
Current yield-capital gains yield and yield to maturity : Pelzer Printing Inc. has bonds outstanding with 9 years left to maturity. The bonds have an 9% annual coupon rate and were issued 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond's market price has falle..
What is the npv of your project : Treasuries pay a rate of return of 8% per year; munis pay a rate of return of 3% per year. What is the NPV of your project?

Reviews

Write a Review

Finance Basics Questions & Answers

  What are the advantages to a business of being formed as a

what are the advantages to a business of being formed as a partnership or sole proprietorship? what are the

  Model for a software development company

Obtain the most recent financial statements (the annual report or Form 10-K) for a software development company from the U.S. Securities and Exchange Commission Web site (http://www.sec.gov/).

  Audit objectives for upc''s capital plans

audit objectives for UPC's capital plans

  How much is the value of the stock to this investor

Since this firm is risky, the required rate of return is 15%. Based on the above information, do you think the offer price is fair? Please explain.

  Calculate the annual lease payments

A Company has contracted to provide lease financing for a machine to automate an assembly line. Yearly lease payments will start at the beginning of each year.

  Calculate the value of the stock today

The firm's most recent annual dividend (D0), which was paid yesterday, was $1.75 per share. a. Calculate the value of the stock today.

  How much would he need to deposit one year later

How much would he need to deposit one year later at t =1 to have $275 in the bank the next year, at t =2? By how much would he have to increase his deposit at t =0 in order to have $275 at t =2 without making a deposit at t =1?

  Computations of the value of a firm

Thompson & Thomson is an all equity firm that has 500,000 shares of stock outstanding. The company is in the process of borrowing $8 million at 9% interest to repurchase 200,000 shares of the outstanding stock.

  One of two mutually exclusive projects

For the following exercise, complete the calculations below. Evaluate different capital investment appraisal techniques by completing the calculations shown below: Bongo Ltd. is considering the selection of one of two mutually exclusive projects. ..

  Estimate the intercept alpha and beta for walgreens stock

excel below is nine months return data for walgreens and the sampp 500.estimate the intercept alpha and beta for

  An analyst is examining an income statement that shows only

an analyst is examining an income statement that shows only percentages all items are expressed in terms of a

  Earnings per share and dividends are expected to increase

Solve this problem Delta, Inc. has a stock price of $50. In the fiscal year just ended, dividends were $2.00. Earnings per share and dividends are expected to increase at an annual rate of 8 percent. The risk-free rate is 4 percent, the market risk p..

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