What is the yield to call for these bonds

Assignment Help Financial Management
Reference no: EM13728574

Bob plans to purchase a callable Bond of general electric. The bond is 20 year to maturity, carry 10.5% annual coupon, paid semi annually, and have $1000 par value. The bond is selling now for $1,187.40 each. The bond can be called back in 5 years at a call price of $1050.5. What is the yield to call for these bonds

a. 15.27% b. 8.87% c. 6.01% d. 6.87%

Reference no: EM13728574

Questions Cloud

Find a resource about one of the classical authors mentioned : Find a resource about one of the Classical authors mentioned in Carl Richard's lecture, and tell us, in about 300 words about the topic of the resource, why it might be useful.
Future cash flows assuming the companys cost of capital : Find the net present value for the following series of future cash flows assuming the companys cost of capital is 9.7%.
Concept of market segmentation in real world practice : The purpose of this assignment is to introduce you to the concept of market segmentation in real world practice
Using the internal rate of return-after-tax cash inflows : A company is using the internal rate of return (IRR) when evaluating projects. You have to find the IRR for the company's project. The initial outlay for the project is $450,000. The project will produce the following after-tax cash inflows:
What is the yield to call for these bonds : Bob plans to purchase a callable Bond of general electric. The bond is 20 year to maturity, carry 10.5% annual coupon, paid semi annually, and have $1000 par value. The bond is selling now for $1,187.40 each. The bond can be called back in 5 years at..
Why did the scots-irish immigrate to the new-world : Why did the Scots-Irish immigrate to the New-World? Where did they settle?
Identifies each link in the supply chain : Write a paper that identifies each link in the supply chain and the purpose and value in each. Use the Auto Industry for this Paper
Discuss the philosophy of management : Discuss the philosophy of management that will be applied to the management of the organization and how the structure of the organization will foster a positive work environment where employees will be motivated and productive.
Calculate the investment net present value : b. Calculate the investment's net present value at each of the following discount rates: 0%, 5%, 10%,20%, 25%, 30%, 35%.c. What does your answer to part b tell you about this project's IRR?

Reviews

Write a Review

Financial Management Questions & Answers

  What is his portfolios beta

Troy has a 2-stock portfolio with a total value of $100,000. $37,500 is invested in Stock A with a beta of 0.75 and the remainder is invested in Stock B with a beta of 1.42. What is his portfolio’s beta?

  Weakening dollar or constant value dollar

For a company that is planning to issue bonds in the US to raise a few billion dollars, what would be a desirable trend in the value of the US dollar (i.e. a strengthening dollar, a weakening dollar, or a constant value dollar) and why?

  Analysis of investment dear sir madam can you please

dear sir madam ltbrgt ltbrgtcan you please provide me the attached solution plagiarism free. looking forward to hear

  What is amount of interest that is included in loan payment

A 10-year loan in the amount of $238,000 is to be repaid in equal annual payments. The interest rate is 7 percent, compounded annually. What is the amount of interest that is included in the loan payment for Year 3?

  Determine the present value of the cash flow stream

Consider a lottery that pays to the winner an annuity of $950 that begins at the end of the first year and continues at the end of each consecutive year for a total of 9 years with one exception. Because of high administrative costs associated with r..

  Future generation telecommunication technology

Future Generation Telecommunication Technology

  Financial analysis

Uses historical financial statements to measure a company's performance and in making financial projections of future performance Relies on generally accepted accounting principles to make comparisons between companies valid. uses historical financia..

  Calculate the degree of operating leverage

Deci-Bell, Inc. is producing new headphones. Deci-Bell Inc. has a base level of sales of 312,464 units. Sales price per unit is $148.61 and variable cost per unit is $61.52. Total annual operating fixed costs are $6,294,441.

  Among the cash management techniques used by most

among the cash management techniques used by most businesses are those that slow down their bill payments. a good

  Prepare the scope and objectives of the risk management

in this assignment you will create a risk management plan. you have a budget of 100000 and a timeline of six 6 months

  Estimate weighted average cost of capital assuming tax rate

The market value of NPU Ice Creamery equity is $8 million and the market value of its debt is $6 million, with book value of debt at $2 million and the book value of equity at $2.5 million.

  What is the proportion invested in each of two risky funds

What is the standard deviation of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Standard deviation. What is the proportion invested in the T-bill fund? (Do not round intermediate calculations. Round ..

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