Calculate the current yield on the bond

Assignment Help Financial Management
Reference no: EM132020287

Suppose you are given the following bond quote information:

Time to maturity: 30 years

Coupon rate: 6%

Price: 102% of par

Par Value: $1,000

Calculate the current yield on the bond. (Enter percentages as decimals and round to 4 decimals)

Please show your work.

Reference no: EM132020287

Questions Cloud

Calculate the price on the bond : Assuming annual compounding, calculate the price on the bond.
Calculate the total interest earned on the initial deposit : Calculate the total interest earned on the initial deposit over the 25 year holding period.
Calculate the equity risk premium for small-company stocks : Given the following information, calculate the equity risk premium for small-company stocks.
What is the net present value of project : What is the net present value of this project if the relevant discount rate is 13 percent and the tax rate is 34 percent?
Calculate the current yield on the bond : Calculate the current yield on the bond.
What is net present value of this project : What is the net present value of this project given a required return of 12.3 percent?
Determine the value of financial asset : Which of the following times are needed to determine the value of a financial asset?
What is the npv of purchasing pressure cooker : The tax rate is 35 percent and the required return is 9.9 percent. What is the NPV of purchasing the pressure cooker?
What is the operating cash flow : Variable costs are 50 percent of sales, the annual fixed costs are $90,100, and the tax rate is 0 percent. What is the operating cash flow.

Reviews

Write a Review

Financial Management Questions & Answers

  What coupon rae would bonds have to pay to be issued at par

Chapman has a coupon rate of 9.63 it maturity 01/01/2042 Last price was $95.09 Lasst yield is 10.15% ESt spread is 7.15 UST is 30 years Est Volume is 65,275. If Chapman wants to issue new 30 year bonds today, what coupon rae would the bonds have to p..

  What is the theoretical value of these bonds

The default risk premium associated with the Copo bonds is 50 bps, as is the liquidity premium. What is the theoretical value of 1 of these bonds?

  Explain salient information contained in financial statement

Identify the salient information contained in the financial statements (income statement, balance sheet, statement of cash flow).

  Best indicator that acquiring firm is good idea

Which one of these is the best indicator that acquiring a firm is a good idea?

  Find the intrinsic value of a share of stock

Find the intrinsic value of a share of stock XYZ using the two-stage dividend discount model. The data for the valuation model has been obtained from the Value Line Research Center. Because the report contains data from the end of 2014, we will use t..

  Determine the present value of expected future cash inflows

Hermes, Inc. is being considered for acquisition by Jupiter, Inc. Jupiter expects the combination to increase its cash flows by $100,000 for each of the next 5 years and by $125,000 for each of the following 5 years. Determine the present value of th..

  Alleviate the problem of size differences among firms

What is a ratio? How do ratios help to alleviate the problem of size differences among firms?

  What would the value be if payments occurred forever

An investment offers $7,800 per year for 13 years, with the first payment occurring one year from now. Assume the required return is 8 percent. What is the value of the investment today? What would the value be if the payments occurred for 38 years? ..

  About usual overall goal of maximizing shareholder value

What about ethics, are they about the usual overall goal of maximizing shareholder value or practicing the values of the majority shareholders.

  How many contracts on treasury bonds futures

A mortgage banker had made loan commitments for $20 million in three months. How many contracts on Treasury bonds futures must the banker write or buy?

  Price and earnings multiple for the typical firm

"The Price/Earnings multiple for the typical firm in the construction industry is 17.

  Stock current price-calculate expected outcome in one year

Calculate the expected outcome in 1 year assuming the stock attains your 1 ear price target.

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