What is yield to maturity

Assignment Help Financial Management
Reference no: EM131524119

ABC's bonds have a 9.5 percent coupon and pay interest semi-annually. Currently, the bonds are quoted at 106.315 percent of par value. The bonds mature in 8 years. What is the yield to maturity?

Reference no: EM131524119

Reviews

Write a Review

 

Financial Management Questions & Answers

  What is the duration of the banks commercial loan portfolio

A bank has two, 3-year commercial loans with a present value of $70 million. The first is a $30 million loan that requires a single payment of $37.8 million in 3 years, with no other payments until then. What is the duration of the bank’s commercial ..

  An exchange call option with expiration of one year allows

An exchange call option with expiration of one year allows the owner to acquire one share of a stock A for one share of a stock B. The price of the option is $2.16. Stock A pays dividends at the continuously compounded yield of 7%. Stock B pays no di..

  Maximize the productivity

As a CEO you wish to maximize the productivity of your workers. You are thinking about providing your employees with smartphones so they can be readily available to clients and increase sales.

  Expansion project-requires initial fixed asset investment

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.49 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be w..

  Amount of the operating cash flow-long-term debt

The Beach House has sales of $790,000 and a profit margin of 7 percent. The annual depreciation expense is $80,000. What is the amount of the operating cash flow if the company has no long-term debt?

  Makes his first contribution to savings today

makes his first contribution to savings today and all contributions to savings are equal?

  Cash balance on conner bank statement

The Conner Company's August 31, 2016 cash balance on its books was $90,000. As of August 31, outstanding checks total $44,000 and deposits in transit total $30,000. What was the August 31, 2016 cash balance on Conner's bank statement?

  What is a discount bond

What are the various methods for recruiting employees. What is a discount bond? Is there a build in capital gain or loss for discount bonds?

  Type of firms must take advantage of financial leverage

Discuss which type of firms must take advantage of financial leverage, and why. Also, which type of firms should avoid financial leverage, and why. With this discussion, I am asking for open discussion also on your thoughts of leverage. Many see it a..

  Market price of the term bonds and the serial bonds

On April 1, 2014 Janine corportation sold some of its five-year, $1000 face value 12 percent term bonds dated March 1, 2014, at an effective annual interest rate (yield) of 10 percent. Intrest is payable semiannually, and first interest payment dat i..

  Most accurate measure of the cost of companys debt

Suess Inc issues a 2-year corporate bond on 31 December, 2012 with a coupon rate of 7.6%, with a face value of $100 and interest paid semi-annually. The most accurate measure of the cost of a company's debt is:

  Retired before receiving the remaining payments

Ogden Mear did an excellent job saving for retirement. He was able to save $1,000,000 in an account that pays 5 percent per year. His plan was to eventually withdraw all his money by paying himself in equal instalments every six months for the next 2..

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