User Account

All Pages

Bond yield to maturity if the bond matures

Assignment Help Finance Basics
Reference no: EM131213966

A bond's market price is $875. It has a $1,000 par value, will mature in 6 years, and has a coupon interest rate of 8 percent annual interest, but makes its interest payments semiannually. What is the bond's yield to maturity? What happens to the bond's yield to maturity if the bond matures in 12 years? What if it matures in 3 years?

Reference no: EM131213966

Questions Cloud

Describe the sample space of all points : Describe the sample space of all points. - What fraction of the points in the space satisfy x > y? - What fraction of points in the sample space satisfy x= y ?
Review the statement of cash flows : Your group will need to review the major sections of this report in order to familiarize yourselves with the content of each of the financial statements and appropriate notes to the financial statements.
Computing the future value at retirement : Your first contribution will be made on your 31st birthday and will be 8% of this year's salary. Likewise, you expect to deposit 8% of your salary each year until you reach age 65. Assume that the rate of interest is 10%.
How many outcomes are in the sample space : How many outcomes are in the sample space? - What fraction of the outcomes in the sample space satisfy n > k ?
Bond yield to maturity if the bond matures : What is the bond's yield to maturity? What happens to the bond's yield to maturity if the bond matures in 12 years? What if it matures in 3 years?
Determine the safeguards used to segregate production : Interview the DBA at your school or at a local business to determine the safeguards used to segregate the production system from the test system.
Write response to article children need to play not compete : Write a 1 ½ to 2 page response to "Children Need to Play, Not Compete." Before you even begin drafting, you will want to decide on the terms of your response.
What positive influence can this factor have : What kind of negative impact, if any, can the factor have on drug use? Explain in detail. What kind of negative impact, if any, can the factor have on drug addiction? Explain in detail.
Monthly payments for four years : You are looking to buy a car. You can afford $430 in monthly payments for four years. In addition to the loan, you can make a $1,200 down payment. If interest rates are 7.50 percent APR, what price of car can you afford? (Do not round intermediate..

Reviews

Write a Review

Finance Basics Questions & Answers

  How will you go about making the cost-saving decisions

Budget Cuts: In order to stay profitable, the center will need to make budget cuts. How will you and the board go about making these cost-saving decisions?

  Due to merger negotiations company r offers 50 a share the

acquisition by exchanging stock. company r wishes to acquire company s. company rs stock sells for 100 per share.

  What is the basic shortcoming of most ratios and rules of

what is the basic shortcoming of most ratios and rules of thumb used in commercial real estate investment decision

  A small wholesaler of decorative cast iron objects

Turnadot & Sons is a small wholesaler of decorative cast iron objects

  If the decision is made by selecting the project with the

bilulu inc. is considering projects s and l whose cash flows are shown below. these projects are mutually exclusive

  The expense recognized each period is equal to the cash

In accounting for a defined-benefit pension plan  a. An appropriate funding pattern must be established to ensure that enough monies will be available at retirement to meet the benefits promised. b. The employer's responsibility is simply to make a c..

  Would exchange rate changes always increase the risk of

would exchange rate changes always increase the risk of foreign investment? discuss the condition under which exchange

  Which of these cash flow streams has higher present value

Investment X offers to pay you $4,500 per year for nine years, whereas Investment Y offers to pay you $7,000 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 %? If the discount rate i..

  Change in economic conditions

You also think that the projects will not be funded until the WACC has increased, and their cash flows will not be affected by the change in economic conditions. Under these conditions, which of the following statements is CORRECT?

  What is the effective annual interest rate

What is the effective annual interest rate that you are being charged by the bank? Hint: Use your financial calculator's TVM keys and solve for i.

  What is the internal rate of return for an investment with

what is the internal rate of return for an investment with the following cash flows? remember to net the flows of each

  What payoff do bondholders expect to receive in the event

Good Time Company is a regional chain department store. It will remain in business for one more year. The probability of a boom year is 56 percent and the probability of a recession is 44 percent.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd