What is their nominal yield to maturity

Assignment Help Financial Management

Reference no: EM131064010

Yield to maturity

A firm's bonds have a maturity of 12 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 6 years at $1,066, and currently sell at a price of $1,125.44.

What is their nominal yield to maturity? Round your answer to two decimal places.

What is their nominal yield to call? Round your answer to two decimal places.

Reference no: EM131064010

Questions Cloud

Index of potential derivatives instruments in portfolio : Assume that you are the hedge fund portfolio manager and are starting a new fund. You have received $1 million to invest in a portfolio of derivatives. You should invest at least 20% in each of options, futures, and derivatives. No one position may c..

What are we actually learning thorough our years in school : How is education an agent of socialization? What are we actually learning thorough our years in school? Exmaine how our education system reflects the biases and limits of our society?

Which values of correlation coefficient indicates relation : Which of the following values of the correlation coefficient indicates the strongest relationship? Assuming that causation exists, if the coefficient of correlation is .5 then it means that:

Higher price than the american-style option : Kevin examines both American- and European-style options that have the same stock, expiration date, and strike price. Kevin argues that the European-style option will be sold at a higher price than the American-style option. Examine Kevin’s belief gi..

What is their nominal yield to maturity : A firm's bonds have a maturity of 12 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 6 years at $1,066, and currently sell at a price of $1,125.44. What is their nominal yield to maturity? What is their nominal yield to ..

To what extent can the presidency influence the success : To what extent can the presidency influence the success and failure of the domestic economy? More specifically, what tools are at the president's disposal?

Issuance of the bonds by comenius corporation : On August 1, 2016 Comenius Corporation issued $10 million of 8% bonds at a price of 105. The bonds mature in 20 years. Each bond was issued with 20 detachable stock warrants, each of which entitled the bondholder to purchase, for $50, one share of Co..

A for profit dialysis centers last dividend : A for profit dialysis centers last dividend was $1.50. The current equilibrium price for its stock is $15.75 and it is expected to grow at a constant rate of 5%. If the stockholders required rate of return is 15%, what is expected yield and expected ..

Bank certificate of deposit : In your Freshman year your uncle deposits $10,000 into a 4-year bank certificate of deposit (CD) that pays 5% annual interest. You will receive the money in the account (including the accumulated interest) if you graduate with honors. How much will t..

User Account

All Pages