What would be this bond current yield

Assignment Help Financial Management
Reference no: EM131524882

AmeriCom has 7 percent coupon bonds on the market with 12 years to maturity. The bonds make semi-annual coupon payments and the most recent closing price was 109.483 percent of par. What would be this bond's current yield? What would be its yield to maturity?

Reference no: EM131524882

Questions Cloud

What would the after-tax cash flow be from equipment sale : What would the after-tax cash flow be from the equipment sale if the equipment is sold in 4 years for 24,000 dollars and the tax rate is 20 percent?
What is the net present value of the stadium project : What is the net present value of the stadium project, which is a 2-year project where Fairfax Pizza would sell pizza in the baseball stadium?
Using straight-line depreciation : The project would require an initial investment of 55,000 dollars that would be depreciated to 10,500 dollars over 7 years using straight-line depreciation.
Difference in ebit-taxable income must be interest expense : find the pretax income. The difference between EBIT and taxable income must be interest expense.
What would be this bond current yield : What would be this bond's current yield? What would be its yield to maturity?
What is duanes affordable home purchase price : Duane MIller wants to know his affordable home purchase price. What is Duane's affordable home purchase price?
How much is your options investment worth : How much is your options investment worth? What is your maximum gain?
Determine the profit or loss per contract-transaction costs : When this position was closed out, the quoted price was 94-75. Determine the profit or loss per contract, ignoring transaction costs.
What is the net amount raised and total indirect costs : What is the net amount raised? What are the total indirect costs? What are the total costs? What was the flotation cost as a percentage of funds raised?

Reviews

Write a Review

 

Financial Management Questions & Answers

  Calculating annuity present value-an investment offers

Calculating Annuity Present value / An investment offers $1,500 per year for 12 years, with the first payment occurring one year from now. If the required return is 12 percent, what is the value of the investment? What would the value be if the payme..

  Undertaking a major investment

Company Omega is undertaking a major investment. It is expected to cost 1 million in initial investment at t = 0,  1 million at t = 1 and  1 million at t =2. The investment is expected to generate at the end of year t = 2 a dividend flow of 1.0 milli..

  Using present worth analysis-type of storage space

A manufacturing company is in need of 1000 square meters of storage space for 3 years. The company is considering the purchase of land for $8 000 and erecting a temporary metal structure on it at a cost of $70 per square meter. Using Present Worth An..

  The correct opportunity cost for project is determined

The correct opportunity cost for a project is determined to be 15% and the project is expected to generate $1 million in cash flows at the end of the next 4 years after an initial outlay of $3 million. Based on this information, the project would plo..

  Assume that the current yield to maturity on the bond

Compute the price of a $5,000 par value bond with a coupon rate of 7.75% (semi-annual payments) and 20 years remaining to maturity. Assume that the current yield to maturity on the bond is 8.60%.

  What should you be willing to pay today for the annuity

An insurance company offers you an annuity of $36,000 per year for the next 15 years. They claim your return on the annuity is 13%. What should you be willing to pay today for the annuity?

  The current equipment allows your production line

The current equipment allows your production line to assemble 1500 widgets per day with a takt time of 3.95 minutes. A vendor is proposing their new equipment which would allow you to assemble 1840 widgets per day. What would the new takt time be?

  What will the new value of fixed assets be for last year

The firm in the previous question reported fixed assets of $7,500 at the end of last year. What will the new value of Fixed Assets be for last year?

  What is present value cost of owning equipment

Lewis Health System Inc. has decided to acquire a new electronic health record system for its Richmond hospital. What is present value cost of owning equipment?

  Bonds assuming a market rate on similar risk bonds

Value these bonds assuming a market rate on similar risk bonds is 7% and interest is paid annually. Value these bonds assuming a market rate on similar risk bonds is 7% and interest is paid semi-annually.

  Statement of owners equity and balance sheet

Prepare a schedule listing the transaction number in one column and beside it in another column show the effect of the transaction on the accounting equation - Prepare the simple income statement, statement of owner's equity and balance sheet for ..

  To calculate the number of years until maturity

To calculate the number of years until maturity, assume that it is currently May 2013. Rate Maturity Mo/Yr Bid Asked Chg Ask Yld ?? May 24 103.5514 103.6396 +.3067 2.409 5.424 May 29 104.5004 104.6461 +.4341 ?? 6.183 May 39 ?? ?? +.5457 4.111 Require..

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