What is the yield to call of the bond

Assignment Help Finance Basics
Reference no: EM131200673

A 5.25 percent coupon bond with 18 years left to maturity can be called in six years. The call premium is one year of coupon payments. It is offered for sale at $1,090.90. What is the yield to call of the bond? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)

Reference no: EM131200673

Questions Cloud

Financial market practitioner : Explain and illustrate an example when a financial market practitioner (including a security analyst) would use CAPM instead of the other models mentioned above.
What is the operational definition of class standing : Complete the diagram (right) on the right with 5 "shots" on each target. - For each construct think carefully about your operational definition and then determine whether it is a) qualitative or quantitative b) discrete or continuous.
Problem regarding the well-diversified portfolios : You are permitted to choose only one portfolio among the three well-diversified portfolios. Suppose the value of the long position is $35.34 million, your largest arbitrage profits in would be_____million.
What is the difference in the cost of the loan : Repeat Example 16.3 using the Excel spreadsheet FV function to determine the cost of borrowing $3,000 on a credit card for 1 years at 28 percent compounded monthly.
What is the yield to call of the bond : What is the yield to call of the bond? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)
Where do you stand on the issue and why : There are distinctly different viewpoints to this argument, based on the different perspectives of academics and theoreticians on the one hand and that of practitioners on the other. Being honest about your reaction, and applying critical thinking..
Treasury rate to be eight years from today : According to the unbiased expectations theories, what does the market expect the 1-year Treasury rate to be eight years from today, E(9r1)? (Do not round intermediate calculations and round your answer to 2 decimal places.)
Determine the material removal rate and the machining power : Assuming that only 70% of the cutter diameter is engaged in the cutting, determine the material removal rate and the machining power required.
Examples in news media of organizations : It is not difficult to find examples in news media of organizations' and individuals' perceived or actual ethical abuses. Write 1-2 pages on the below topics.

Reviews

Write a Review

Finance Basics Questions & Answers

  Last year joan purchased a 1000 face value corporate bond

last year joan purchased a 1000 face value corporate bond with an 7 annual coupon rate and a 25-year maturity. at the

  Find the present value of an income stream which has a

question 1afind the present value of an income stream that has a negative flow of rm100 per year for 3 years a positive

  Spreadsheet mpodelling and decision analysis

Spreadsheet mpodelling and decision analysis

  Compute more than one annuity value

Compute more than one annuity value then figure out how to combine them. Chose the interval that contains your calculated answer.

  Effective information technology security policy framework

Establishing an effective Information Technology Security Policy Framework is critical in the development of a comprehensive security program. Additionally, there are many security frameworks that organizations commonly reference when developing t..

  Gould corporation began operations on january 1 2012

gould corporation began operations on january 1 2012. the following information is available for gould corporation on

  Which does almost all of the photocopying for the sales

Bullock's Company's copy department, which does almost all of the photocopying for the sales department and the administrative department, budgets the following costs for the year, based on the expected activity of 5,000,000 copies.

  Prepare the cash budget for seal limited for the months

Prepare the cash budget for Seal Limited for the months of April, May and June - Calculate the expected marginal income for the year and what will be the breakeven point (in units) of Sun Manufacturing Limited for the year?

  Adams inc will deposit 30000 in a 12 fund at the end of

adams inc. will deposit 30000 in a 12 fund at the end of each year for 8 years beginning december 31 2012. what amount

  Emerging issues force influences accepted principles

1. Analyze the way in which Emerging Issues Force (EITF) influences Accepted Principles (GAAP). Based on your analysis, one that the EITF could take in order to effectively influence GAAP.

  What is its after-tax cost of debt

Suppose your firm can borrow what it needs from a local bank at 5% interest. If your firm's effective tax rate is 30%, what is its after-tax cost of debt?

  Beneficiaries of the power of appointment trust

2. Which statement concerning Chuck and Elizabeth's estate plans is not correct? Justify your answer.

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