Calculate the yield-to-maturity of the bonds

Assignment Help Business Economics
Reference no: EM131868692

In 2010, investors required a rate of return of 12% on bonds with characteristics similar to those of the prior series. Calculate the market value of the bond. (Coupon rate = 10%, Issue Date = 2007, n = 15, annual payment and of period)

In 2014, the bonds were selling for $1020. Calculate the yield-to-maturity of the bonds.

Reference no: EM131868692

Questions Cloud

Correlation coefficient between the returns of stock : Let the correlation coefficient between the returns of Stock X and Y equal 1. Let the standard deviation Stock X equal 25%
Capital structure analysis and funding growth strategies : Capital Structure Analysis and Funding Growth Strategies. Imagine your firm has some attractive investment opportunities that it is considering.
How much must you deposit each year to obtain your? goal : If the bank is willing to pay 13 percent compounded? annually, how much must you deposit each year to obtain your? goal?
What do you foresee in the economy in five to ten years : What is the article about? Who are affected? How does the article relate to our lecture on inflation? What do you foresee in the economy in five to ten years?
Calculate the yield-to-maturity of the bonds : Calculate the market value of the bond. (Coupon rate = 10%, Issue Date = 2007, n = 15, annual payment and of period)
Calculate npsha for the given example : Calculate NPSHA for the given example
Account with a seven-percent interest rate : How much of the $10,000 will Megan need to invest today in an account with a seven-percent interest rate to have enough in four years to pay for the first year?
Illustrate components of the overall marketing mix : Within the Discussion Board area, write 400-600 words that respond to the following questions with your thoughts, ideas, and comments.
Find unemployment rate and labor force participation rate : Find the unemployment rate and the labor force participation rate. Find the GDP deflator in 2017 if the base year is 2015.

Reviews

Write a Review

Business Economics Questions & Answers

  Trigger executive bonuses for that year

What performance percentage would you use to trigger executive bonuses for that year.

  Upon the creation of a single market

Suppose that two countries, initially in autarky, decide to create a single market. For simplicity, assume that in both economies there is only one product. Demand for this product is given by D(i) = S(i) (a – p(i)) (for i = 1, 2), where S(i) is a me..

  Develop brand new theories to explain global governance

Drezner mentions that in this current era of globalization, the international relations community might need to develop brand new theories to explain global governance, rather than relying on theories that took hold in the latter part of the 20th ..

  Interest-rate responsiveness of real money demand

All other things remaining equal, which of the following changes would cause the AD curve to become steeper? To become flatter? an increase in the interest-rate responsiveness of autonomous consumption? an increase in the interest-rate responsiveness..

  Illustrate what was the impact on the supply and demand

Illustrate what was the impact on the supply and demand of labor on one sector of the labor market. Explain the factors that affected labor demand and labor supply in the chosen historical example.

  Emerged from the war pessimistic-cynical and discouraged

Though no horrendous numbers, Americas too died in the trenches of France, and the experience of mass death transformed American society. The United States went into the war to "make the world safe for democracy" but emerged from the war pessimistic,..

  Exclusive boutiques owned and maintained by vision

The management at Vision, a company that specializes in high-end eyewear, was dissatisfied with the performance of the marketing intermediaries’ in promoting its products. The company decided to sell its products only through standalone, exclusive bo..

  Differences between fraud-misrepresentation and mistake

List the ways by which a party to a contract can cause a fraudulent misrepresentation to occur. Give an example for each way that you list. Identify the similarities and the differences between fraud, misrepresentation and mistake.

  Consider proportional sales tax and progressive sales tax

The simple case of a fixed per-unit tax is indicative of more complicated ones. Consider a proportional sales tax and a progressive sales tax. How do the tax revenues, and quantities produced compare in these various cases? Explain how value can be c..

  What is the bertrand model and cournot-stackelberg model

What are the advantages of the HHI over concentration ratios in measuring the degree of concentration in an industry? What is the Bertrand model? What is its relationship to the Cournot model? What is the Stackelberg model?

  What is the equilibrium price for marijuana

In the absence of government interference, there is a constant marginal cost of $5 per ounce for growing marijuana and delivering it to buyers. If the probability that any shipment of marijuana is seized is 0.20 and the fine if a shipper is caught is..

  Estimate amount of former foreign-monopoly profit

Estimate amount of former foreign-monopoly profit that is transferred as tariff revenue to home nation when home nation imposes tariff.

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