Solution-Ytm on a bond-equivalent basis

Ytm on a bond-equivalent basis

Assignment Help Accounting Basics

Reference no: EM13973944

Consider the following information on a bond for the next 2 problems:

Coupon rate = 11%

Maturity = 18 years

Par value = $1,000

market price for this bond $1,169 First par call in 13 years

Only put date in five years and putable at par value

1. The annual YTM on a bond-equivalent basis is approximately:

a.7.099%

b. 9.077%

c.11%

d.10.23%

e.11.49%

2. Which of the following is false?

a. The PV of the total coupon payments is $966.663

b. The PV of the maturity value is $202.327

c. The bond is sold at a discount

d. The bond is sold at a premium

e. The bond price shows a capital gain

Reference no: EM13973944

Questions Cloud

Why the java is called platform independent : Why the Java is called platform independent? Discuss - what are the two most important benefits of the Java language?

Write a debate summary revising for japman : Write a Debate summary revising for JAPMAN. The seeds of the conflict between Japan and the West were sown the moment the Meiji government.

How do your ethics and values influence : Once you have updated your leadership development action plan, respond to the following: How do your ethics and values influence how you model the way in your professional and personal life? How do these concepts impact your decision-making practices

List 6 recognized medicinal uses for marijuana. : Briefly explain conclusions from research for marijuana use and driving.(what kind of impairment from marijuana use might make driving dangerous, what do research reports from the DEA show)

Ytm on a bond-equivalent basis : 1. The annual YTM on a bond-equivalent basis is approximately:

What is the difference between price maker vs price taker : How do network effects help Facebook fend off smaller social-networking rivals? Could an online retailer doing half as much business compete on an equal footing with Amazon in terms of costs? Explain.

Evaluate the causes of stroke : Evaluate the causes of stroke. Discuss the differences between transient ischemic attack and cerebrovascular accidents (CVA). Discuss the types, warning signals, and treatment of CVA.

Cox company uses standard costing : The standard quantity of material allowed for April production is: A. 14,200 gallonsB. 12,700 gallonsC. 11,700 gallonsD. 10,200 gallons

Presentation of design alternatives for engineering systems : Development, evaluation and presentation of design alternatives for engineering systems and projects using principles of engineering economy and cost benefit analysis. Engineering profession, professional ethics and related topics.

User Account

All Pages

Ytm on a bond-equivalent basis

Reference no: EM13973944

Reference no: EM13973944

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

What should be the balance in kents deferred tax liability

Were there significant changes to any of the specific

The following information is available to reconcile clark

Prepare a schedule of lease payments for field ltd a

Assuming a 50 tax rate compute the earnings per share data

Assume that the assembly department of advanced

What is the amount of ending inventory

Franco and elisa share income equally during the current

Garden sales inc sells garden supplies management is

Prepare the journal entries rick

The purchase of some land to be held as an investment

Influence of health policies-the future of health care

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT