What must the coupon rate be on these bonds

Assignment Help Financial Management
Reference no: EM131311077

DMA Corporation has bonds on the market with 20.5 years to maturity, a YTM of 8.1 percent, and a current price of $1,074. The bonds make semiannual payments and have a par value of $1,000.

What must the coupon rate be on these bonds?

Reference no: EM131311077

Questions Cloud

Examine family relationships and communication patterns : Examine the impact of functional patterns and role structure on the family. Examine family relationships and communication patterns. Identify influences on family health promotion
Explain why sea level rise is so important in coastal areas : Explain why sea level rise is so important in coastal areas, especially in terms of storm surges. What are some different "hard" and "soft" solutions to coastal areas at risk from increasing storm surges?
Discuss the arguments for tuition deregulation in tx : Discuss the arguments for tuition deregulation in TX. Also, discuss the impact on tuition that resulted and who now controls tuition in TX.
Scienceco case study-managing an expert workforce : ScienceCo was founded in 1995. It is a medium-sized, science and technology-based consultancy company, located on the outskirts of London. It operates today on a global basis.
What must the coupon rate be on these bonds : DMA Corporation has bonds on the market with 20.5 years to maturity, a YTM of 8.1 percent, and a current price of $1,074. The bonds make semiannual payments and have a par value of $1,000. What must the coupon rate be on these bonds?
Corporate bonds-what is the current price of the bond : Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. If the yield to maturity is 8.1 percent, what is the current price of the bond?
What are individual implications of the abortion problem : What are the individual and social implications of Abortion problem? Discussion of implications should be supported by accurate research data. What do the experts say about the problem?
Where in the body might turbulence develop : Note that the vessels downstream from the heart receive only a portion of its volumetric output, due to branching of vessels. The percentages given here are ballpark estimates.
Around shared energy of mission : Peer reviewed journal articles provide the best support and deeper content. Organizations are human systems built around shared energy of mission, vision and values (Jha, Joshi, Vasudevan & Sankarasubramanyan, 2013). What are your thoughts?

Reviews

Write a Review

Financial Management Questions & Answers

  Thinking about purchasing a new computer

You are thinking about purchasing a new computer since the machine you are using now is four years old, slow, not always reliable, and does not support the latest operating system. Part of the reason this distinction is important is that a decision s..

  Zero coupon bonds have more reinvestment risk

10-year, zero coupon bonds have more reinvestment risk than 10-year, 10% coupon bonds. A 10-year, 10% coupon bond has less reinvestment risk than a 10-year, 5% coupon bond (assuming all else equal). The price of a 20-year, 10% bond is less sensitive ..

  What are the pros and cons associated with the styles

What can I say to illustrate the intrinsic value of human capital? Why would you think that conflict may occur because of these style differences? What are the pros and cons associated with these styles?

  Considering new project whose data-equipment cost

Fool Proof Software is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, and the allowed depreciation rates for such property are 33%, 45%, 15%, and 7% for Years 1 through 4.

  Financial trends and industry comparisons for a company

financial trends and industry comparisons for a company

  What is the yield on this five year corporate bond

A 5-year Treasury bond has a 3.45% yield. A 10-year Treasury bond yields 6%, and a 10-year corporate bond yields 9.4%. The market expects that inflation will average 3.75% over the next 10 years (IP10 = 3.75%). What is the yield on this 5-year corpor..

  Regarding the law of large numbers

Which of the following statements is correct regarding the law of large numbers?

  Covariance with the market return

The stock of Hammond corp. has a covariance with the market return of 0.031%. The variance of the market return is 0.041%. The estimated risk free rate is 4% and the estimated market rate of return is 10%. The estimated required return on Hammond's s..

  What is the operating cash flow for first year of project

The Sports Club wants to expand its facility. The expansion will require $350,000 in building improvements that will be depreciated on a straight-line basis over a 10-year period. The expanded area is expected to generate $250,000 in additional sales..

  Consequences of not having done any stock split

Warrent Buffett, chairman and chief executive of Berkshire Hathaway commented in Berkshire's 1983 annual report: "We are often asked why Berkshire does not split its stock.... we want shareholders who think to themselves as business owners with the i..

  What is its equity multiplier and debt-equity ratio

Allen, Inc., has a total debt ratio of .69. What is its debt-equity ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Requirement 2: What is its equity multiplier?

  Whether the government should use a tariff or a quota

You are employed in the Ministry of the Economy and have been asked to provide a briefing on whether the government should use a tariff or a quota. - What will you say in your presentation?

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