Calculate the yield-to maturity

Assignment Help Finance Basics
Reference no: EM13790575

Ford Motor Credit Company just launched a new issue on November 20, 2014: $250 million of zero coupon bonds (par value $1,000), which mature on November 20, 2024. Calculate the yield-to maturity if an investor purchased one of these bonds on the issuing date at a price of $645.

Reference no: EM13790575

Questions Cloud

Resource restriction in a mathematical model : Which of the  equation or an inequality that expresses a resource restriction in a mathematical model?
Write paper on police brutality : Write paper on police brutality. Thesis statement: This statement presents the problem or issue you intend to research, and it should be clear and concise
Write essay about using cell phones while driving acceptable : Write an essay about is using cell phones while driving acceptable or should be banned?
What secondary data would be useful in helping : Suppose your company is interested in introducing a new women's facial care product. What secondary data would be useful in helping you to make the decision whether or not to introduce the product
Calculate the yield-to maturity : Calculate the yield-to maturity if an investor purchased one of these bonds on the issuing date at a price of $645.
What do scientists target on the virus or bacterium : What do scientists target on the virus or bacterium - what are antigens? What role do antigens play in creating the vaccine?
Primary care practice of physicians and staff : Your organization has received approval to expand primary care in a local rural community. This new facility will consist of a primary care practice of physicians and staff.
Similarities between the fundamental makeup of the groups : Explain the differences and similarities between the fundamental makeup of the groups' origins as they relate to ethnic background, political ideology, social orientation, religion, and financial motivation
Future of complex health care systems : Research contemporary issues that currently impact the future of complex health care systems. Some suggested topics include: Access to health care Reimbursement changes The Affordable Care Act Shortages of clinical professionals Narrow your resear..

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the market risk premium

A stock has the same level of systematic risk as the market. The stock has an expected return of 14%. The risk free rate is 5%. Calculate the market risk premium.

  Is the realized yield higher or lower than promised yield

Compute the realized rate of return for investors who purchased the bonds when they were issued and who surrender them today in exchange for the call price. Is the realized yield higher or lower than the promised yield?

  As we have approached the final step of our screening

as we have approached the final step of our screening process it is essential that we determine the most eligible

  How much outside financing is needed

In the event that either debt or equity could be used to meet the objective, what other considerations should affect the choice? In particular, how might you expect issues of control and risk to bear on the decision?

  Reasons for acquisitions in technology-telecommunications

Why do you think there have been so many acquisitions in the technology sector, the telecommunications sector and the regional banking sector?

  Certain installment receivables are not collectible within

certain installment receivables are not collectible within one year. why are these receivables sometimes included in

  Qualified plan for a small employer

Select a qualified plan for a small employer.

  Determine the stock value per share

Corporation x is expected to generate $150 million in free cash flow next year, and FCF is expected to grow at a constant rate of 5 percent per year indefinitely.

  What is the rate for the loan

how would you make the development of your spreadsheet? how much money did you pay for the car? what is the rate for the loan? how much money do you save if you pay cash for the car.

  What is the after-tax cost of this preferred stock offering

St.Joe Trucking has sold an issue of $6 cumulative preferred stock to the public at a price of $60 per share. After issuance costs, St.Joe netted $57 per share. The company has a marginal tax rate of 40 percent.

  What is the effective annual return

What is the effective annual return (EAR) for an investment that pays 10 percent compounded annually?

  What is the bond coupon rate

A 25-year Treasury bond is issued with face value of $1,000, paying interest of $62 per year. If market yields increase shortly after the T-bond is issued, what is the bond's coupon rate?

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