Yield to maturity of a perpetuity

Assignment Help Finance Basics
Reference no: EM131412085

Assume that the yield to maturity of a perpetuity (consol) is 6.5% (or .065) and that its yearly payment is $195. Please calculate:

1. This consol's price

2. This consol's Current Yield.

Reference no: EM131412085

Questions Cloud

Calculate the average area of the samples of rectangles : Each student will calculate the average area of the sample(s) of rectangles. The instructor will collect these averages and pass out a list of them to the class. Repeat the data collection procedure, using samples of size 10.
Compute the capital gains yield : Compute the capital gains yield, current yield, and total yield that Jenna will earn if she holds the bond until it matures. Assume that the market rate does not change from now until maturity.
What is dorothy net worth : She has an auto loan of $9,500 of which $3,700 is due in the next 12 months. She owns a home worth $350,000, furniture and fixtures of $1,500, appliances with a value of $1,000, a Condo worth $120,000 and stamp collection of $1,000. She also has m..
Explain the effects of radiation on the dna sequence : Describe alpha, beta, and gamma radiation. Describe the chemistry of DNA. Explain the effects of radiation on the DNA sequence. Describe how the changes in DNA may become cancerous. Explain how radioactivity is used to treat cancer.
Yield to maturity of a perpetuity : Assume that the yield to maturity of a perpetuity (consol) is 6.5% (or .065) and that its yearly payment is $195. Please calculate:
Find the number of days to maturity : Please find the number of days to maturity (n) for a U.S. Treasury Bill with an investment rate of 2.48% (or .0248), a Face Value of $10,000, and a Market Price of $9,925. Please show your work and carry your calculations to four decimal places. R..
To what volume of helium will the balloon expand : Assuming that the temperature remains constant, to what volume of helium will the balloon expand when it rises to an altitude where the pressure is only 50.0 kPa.
Analyze the impact of narration on storys tone and meaning : In light of contemporary issues and writing style, analyze the impact of narration/voice on each story's tone and meaning. How does the narrative style help to define the characters? How does it help to convey meaning? In your post, make specifi..
Consider the recent performance : Describe the company, consider the recent performance (take five years) of the shares have selected. That means that you have to research the price of the chosen share five years ago and today.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial planning and agency conflicts

From the scenario, cite your forecasting conclusions (financial data from TFC's financial statements and forecasted statements) that support TFC's to expand to the West Coast market. Note: the response has to include specific operational, financi..

  Find the current cost of valve

Rex manufacturing produces a line of equipment with a European servo value that cost $100 when the Euro was 83 cents. Now that the Euro is $1.59 cents the component is a problem.

  Adopted a nash equilibrium strategy

In a strategic game, if the other player has adopted a Nash equilibrium strategy, you should a. also adopt a Nash equilibrium strategy.

  If the annual operating expenses will be 1 and the 12b-1

you pay 21600 to the laramie fund which has a nav of 18.00 per share at the beginning of the year. the fund then

  Plot a graph of microsofts expected rate of return on the

assume that microsofts stock has an expected rate of return of 7 percent. determine the market risk premium point

  Update the information or change and paraphrase

Update the information (change and paraphrase ) them from 2013 to 2015 about Dell company and add one table about ratios and two references.

  What is the value of this option to abc

ABC, Inc. has a potential capital budgeting project with a growth option. The NPV of the project with the growth option is $1,631 and without the growth option is $472. What is the value of this option to ABC?

  Why profit margin is appropriate for measuring rate of roa

Describe the difference between the profit margin for ROA and the profit margin for ROCE. Explain why each profit margin is appropriate for measuring the rate of ROA and the rate of ROCE, respectively.

  What will be cwc''s after-tax operating income

Assume that all sales and operating expenses, except depreciation, are cash. CWC's marginal tax rate is 40 percent.

  What effect did this eventually have on the money markets

What was the purpose motivating regulators to impose interest ceilings on bank savings accounts? What effect did this eventually have on the money markets?

  Should reynolds lease or buy the equipment

If Reynolds borrowed and bought, the bank would charge 10% interest on the loan. In either case, the equipment is worth nothing after 2 years and will be discarded. Should Reynolds lease or buy the equipment?

  What is the difference between the breakeven points

What is the difference between the breakeven points for Machines A and B? (Hint: Find BEB - BEA)

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