Yield to maturity for the bond

Assignment Help Financial Accounting
Reference no: EM132203927

A $1,000 bond has a coupon rate of 8% and will repay its nominal value when it matures in four years' time. The bond will be purchased today for $900 ex interest and held until maturity. Calculate, to the nearest 0·01%, the yield to maturity for the bond based on today's purchase price.

Reference no: EM132203927

Questions Cloud

Why is planning important to strategic management : Write a 2-3-page reflection analyzing the work - Why is planning important to strategic management in a functional area? What are the risks of not planning
Budgetary planning and control systems : Explain THREE benefits that organisations gain from using budgetary planning and control systems.
Why do companies give dividends : Why do companies give dividends? Are companies required to declare dividends? What factors have to be considered by a company before giving a dividend?
Current expected market value of the bond : Similar bonds have a yield to maturity of 8% per annum. Show the current expected market value of the bond.
Yield to maturity for the bond : Calculate, to the nearest 0·01%, the yield to maturity for the bond based on today's purchase price.
Increasing level of trade receivables : JB is concerned about the increasing level of trade receivables and is considering various options to encourage customers to pay earlier.
Payments on stocks tax deductible : Are cash dividend payments on stocks tax deductible to the stock issuer.
Compute earnings per share for the year : a. Compute earnings per share for the year 2000. b. Compute earnings per share for the year 2001.
What is the value of annuity today : If the annual discount rate is 10% and the 6-month rate is (1+.10)1/2, then what is the value of this annuity today (assuming today is 1/1/2001)?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare journal entries to record transactions of ChiHerbal

ACCT6003 FINANCIAL ACCOUNTING PROCESS ASSIGNMENT, LAUREATE INTERNATIONAL UNIVERSITIES. Prepare journal entries to record transactions of ChiHerbal

  What is future value of annuity-compounded continuously

What is the future value of an annuity of 17 deposits of $2300 each year with nominal rate of interest being 10% compounded continuously?

  Identification of key qualitative factorsrelevant costs

identification of key qualitative factors.relevant costs special sales order-idle versus full capacity hull motors inc.

  Universal rule for achieving internal control over cash

Properly designed internal control will permit the same employee to: Which of the following is not a universal rule for achieving internal control over cash? Which of the following is not a control that generally is established over cash receipts?

  Depreciation expense recorded

The equipment had an original cost of $200,000 when purchased on January 1, 2012. It has a 10-year useful life and no salvage value. Depreciation expense recorded prior to 2014 under the double declining balance method was $72,000.

  Explain how the change in expectations cause the bond market

explain how the change in expectations causes the bond market to move from initial equilibrium, E1, to final equilibrium, E2.

  Revenue is recorded using the actual cost approach

Smokey International Inc recently aquired the Kurtz Builders Company. Kurtz has incomplete accounting records. On one particular project, only the information below is available. you are asked the following questions assuming the percentage-of-comple..

  Discuss the issues related to the new notes

It is now year end and the share price is trading above the fixed conversion price but well below the 20% premium level. The note therefore cannot be tuned in (i.e., converted). The CEO feels that the share price will not exceed the 20% premium fo..

  Using the installment sale method of accounting

Colton Company sold stud that cost $240,000 for $600,000 on January 1, 2015. The profit to be recognized in the first year (2015) using the installment sale method of accounting is: The profit to be recognized in the second year (2016) using the cost..

  Transactions in the capital projects fund in general journal

Please record the following transactions in the Capital Projects Fund in the general journal for the following transactions. Bradley County issued $6,300,000, 5% bonds with interest payable on a semiannual basis on July 1 and January 1. The bonds sol..

  Unit-level activity

Which of the following is not a unit-level activity?

  Using the declining balance method

A machine with a cost of $ 65,000 has an estimated residual value of $ 5,000 and an estimated life of 10 years or 18,000 hours. What is the amount of depreciation for the second full year, using the declining balance method?

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