What is the yield to maturity of this bond

Assignment Help Financial Management
Reference no: EM131020729

A Japanese company has a bond outstanding that sells for 86 percent of its ¥100,000 par value. The bond has a coupon rate of 4.5 percent paid annually and matures in 16 years. What is the yield to maturity of this bond?

Reference no: EM131020729

Questions Cloud

Is mary maximizing utility : Mary is buying corn chips and soda. She has 4 bags of corn chips and 5 bottles of soda in her shopping cart. The marginal utility of the fourth bag of corn chips is 10, and the marginal utility of the fifth bottle of soda is also 10. Is Mary maxi..
Firewalls can operate at all osi layers except which of them : In which system life cycle phase should security policy be established?
Two annuities have both equal present and future values : You are comparing two annuities that offer quarterly payments of $2,500 for five years and pay .75 percent interest per month. You will purchase one of these today with a single lump sum payment. These two annuities have both equal present and future..
Determining the level of soft drinks to consume : Consider the market for soft drinks. Suppose recent studies show that consumption of soft drinks results in significant health costs to society due to the ingestion of high levels of high fructose corn syrup. Currently consumers of soft drinks do ..
What is the yield to maturity of this bond : A Japanese company has a bond outstanding that sells for 86 percent of its ¥100,000 par value. The bond has a coupon rate of 4.5 percent paid annually and matures in 16 years. What is the yield to maturity of this bond?
Consider purchasing a new wood saw that costs : Consider purchasing a new wood saw that costs $40,000. The saw will generate revenues of $100,000 per year for five years. The cost of materials and labor needed to generate these revenues will total $60,000 per year, and other cash expenses will be ..
How historical analysis informs the context of policy : Identify a challenge or area of improvement within your chosen area -  write and present on a solution to the challenge or area of improvement from both a tactical and administrative perspective.
What sense did j.c. penney pull up the anchor : An article in the New York Times about J.C. Penney's pricing strategy under former CEO Ron Johnson observes: "Penney had pulled up the anchor, only to see many of its customers sail away." In behavioral economics, what is an "anchor"?
Find the range of value of the gain for the system : Using the bilinear transformation and Routh's Stability Criterion find the range of value of the gain for the system remains stable.

Reviews

Write a Review

Financial Management Questions & Answers

  Law requires that all brokers have an initial margin

Suppose that you have $82,500 to invest and would like to purchase 1500 shares of ABC Corp's shares which are currently trading for $100.00 per share. Law requires that all brokers have an Initial margin of 50% but your broker demands a 55% initial m..

  Assuming the market is in equilibrium

Crisp Cookware's common stock is expected to pay a dividend of $1.5 a share at the end of this year (D1 = $1.50); its beta is 1.15; the risk-free rate is 5.2%; and the market risk premium is 5%. The dividend is expected to grow at some constant rate ..

  What is this projects equivalent annual cost or EAC

A five-year project has an initial fixed asset investment of $360,000, an initial NWC investment of $40,000, and an annual OCF of −$39,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required re..

  Cash flow from operating activities and investing activities

Which of the following is NOT a cash flow from operating activities. Which of the following is NOT a cash flow from investing activities? Which of the following is NOT a cash flow from operating activities

  Fed changes the monetary policy

Suppose the Fed has just learned that the Treasury will need to borrow a larger amount of funds than originally expected. Explain how this information may affect the degree to which the Fed changes the monetary policy.

  Customers of a fast food chain order a hamburger

A total of 60% of the customers of a fast food chain order a hamburger, French fries, and a drink. If a random sample of 15 cash register receipts is selected, what is the probability that 10 or more will show that the above three food items were ord..

  Compare interest rate parity and purchasing power parity

Comparing parity theories. Compare and contrast interest rate parity, purchasing power parity (PPP), and the international Fisher effect (IFE).

  Use the expectations theory of how long-term interest rates

Suppose that the current 1- year treasury bond yield is .2 and the 2 year treasury bond yield is .3 Use the expectations theory of how long-term interest rates are deternined to ascertain that what investors expect the yield to maturity to be for a 1..

  Financial statement-calculate the operating and cash cycles

Consider the following financial statement information for the Ayala Corporation: Item Beginning Ending Inventory $ 10,400 $ 11,400 Accounts receivable 5,400 5,700 Accounts payable 7,600 8,000 Credit sales $ 84,000 Cost of goods sold 64,000 Calculate..

  What is the current value of the stock today

Start Up Plc is expected to pay a dividend of 4.75 per share at the end of year 1 and these dividends are expected to grow at a constant rate of 3.5% per year forever. If the required rate of return on the stock (and all stocks of the same risk class..

  Put option has the right to sell the underlying asset

The Buyer of a Put option has the right to sell the underlying asset. If a Buyer of a Call Option on General Motors stock buyer exercises her option, GM is required to sell shares to her.

  What is the payback period for this project

Christopher Electronics bought new machinery for the $5, 030,000 million. This is expected to result in additional cash flows of $1,230,000 million over the next 7 years. What is the payback period for this project? Their acceptance period is five ye..

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