What is the yield to maturity on this bond

Assignment Help Financial Management
Reference no: EM131049226

Visionary TV Corporation bonds are currently priced at $1,088. They have a par value of $1,000 and 12 years to maturity. They pay an annual coupon rate of 6%. What is the yield to maturity on this bond?

Reference no: EM131049226

Questions Cloud

Paying annual dividends-dividends are projected to increase : NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $0.49 a share. The following dividends will be $0.54, $0.69, and $0.99 a share annually for the following three years, respec..
Accountant liability under rule : Accountant's Liability under Rule 10b-5. In early 2010, Bennett, Inc., offered a substantial number of new common shares to the public. Harvey Helms had a long-standing interest in Bennett because his grandfather had once been president of the com..
About the principles of finance : Assume that you went to Las Vegas and hit the jackpot for 5 million. Further assume that you were offered a choice to receive the $5 million today or receive it in two years. According to one of the principles of finance, which would you take?
Find the least-squares line appropriate for this data : Find the least-squares line appropriate for this data.
What is the yield to maturity on this bond : Visionary TV Corporation bonds are currently priced at $1,088. They have a par value of $1,000 and 12 years to maturity. They pay an annual coupon rate of 6%. What is the yield to maturity on this bond?
Answer the accounting firm of goldman : Question with Sample Answer The accounting firm of Goldman, Walters, Johnson & Co. prepared financial statements for Lucy's Fashions, Inc. After reviewing the various financial statements, Happydays State Bank agreed to loan Lucy's Fashions $35,00..
What is the yield-to-maturity of the bonds : Facade Securities has an issue of $1,000 par value bonds with 18 years remaining to maturity. The bonds pay 7.7% interest on a semiannual basis. The current market price of the bonds is $1,175. What is the yield-to-maturity of the bonds?
What is the stocks expected rate of return : Jackson Corp. common stock paid $2.50 in dividends last year (D0). Dividends are expected to grow at a 12-percent annual rate forever. If Jackson's current market price is $40.00, what is the stock's expected rate of return (nearest .01 percent)?
Considering purchasing this stock at the market price : The common stock of Cranberry Inc. is selling for $26.75 on the open market. Next year's dividend is expected to be $3.68, and the growth rate of this company is estimated to be 5.5%. If Richard Dean, an average investor, is considering purchasing th..

Reviews

Write a Review

Financial Management Questions & Answers

  Enough funds at the point of retirement

Assume that you are presently 30 years old and that you intend to retire when you turn 65. You would like to make sure that you have enough funds at the point of retirement to last until you are 95. You estimate that it would take $72,000 per year, i..

  What is the NPV and IRR for each project

Kerron Company is presented with the following two mutually exclusive projects. The required return for both projects is 17 percent. Year Project M Project N 0 –$145,000 –$360,000 1 64,000 150,000 2 82,000 185,000 3 73,000 135,000 4 59,000 115,000. W..

  How much is the coefficient of variation for DBB

An investor holds a porfolio of stocks and is considering investing in the DBB Company. The firm's prospects look neutral and you estimate the following probability distribution of possible returns. How much is the expected return for DBB? How much i..

  For each of the four scales of measurement

For each of the four scales of measurement, give an example of how it might be appropriate for measuring a particular marketing phenomenon.

  Annual interest rate and how much needs to be borrowed

Company expects to use $1,600,000 short term credit bus wants a $3, 000, 00 line of credit in case of unexpected events. LIBOR is 4% and the loan is priced at LIBOR plus 2.5% with Commitment fee of 0.3% on the unused portion of the line. Bank also re..

  Mutual fund-the market index and the risk-free rate

Consider the following information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is .97. What are the Sharpe and Treynor ratios for the fund?

  Determine which form of contracting benefit your business

Image your small business that produces very small remote control aircraft capable of long sustained flights. You are ready to expand your business by competing for Department of Defense (DoD) contracts.

  Analyse different patterns of cost behaviour

Evaluate the performance of a company using various financial analytical tools and analyse different patterns of cost behaviour and apply cost-volume-profit analysis to business decisions.

  In the statement of cash flows

In the Statement of Cash Flows, a source of cash would be: A decrease in assets or an increase in liabilities An increase in assets or a decrease in liabilities Increase in Inventories Decline in notes payable

  Percentage change in price of bond sam

Both Bond Sam and Bond Dave have 8 percent coupons, make semi annual payments, and are priced at par value. Bond Sam has four years to maturity, whereas Bond Dave has 17 years to maturity. If interest rates suddenly rise by 2 percent, what is the per..

  Describe cyclical variations and seasonal variations

We’ve already discussed seasonal variations and how they result from the predictable shopping habits of consumers. Describe cyclical variations. How do they compare to seasonal variations?

  Bankruptcy costs and asymmetric information

What does the following statement mean? Do you agree with the following statement that describes Modigliani and Miller's work? "In the absence of taxes, bankruptcy costs and asymmetric information, and in an efficient market, the value of the firm is..

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