Calculate the yield to maturity of two bonds

Assignment Help Financial Management
Reference no: EM131902316

1) Calculate the Yield to Maturity of 2 bonds that have a decimal coupon rate .11665, mature on November 30, 2020, and have a current price of 95 5/8 . Today's date is March 1, 2012.

2) A bond coupon rate is 7 3/4%; It's price quoted on the OTCBB is 101, and it matures in 8 1/2 years. What is its current yield?

3) You just got a bond interest check for $65.95. You paid 97.625 for this bond 3 years ago, and it is quoted today at 99 1/11. If it matures in 6 years and 4 months, what is it current yield?

4) The CY on a bond is 4 1/8%. If it is quoted today at 102 7/8, how much would an interest check be on this security if you owned 9 of them?

Reference no: EM131902316

Questions Cloud

Prepare spreadsheet showing the portfolio value : prepare a spreadsheet showing the portfolio value at different BMW.DE prices and different EUR FX rates.
Income statement and cash flow statement : A firm is considering purchasing a new milling machine and has collected the following information for its income statement and cash flow statement.
Determine the after-tax marginal costs : Determine the after-tax marginal costs if the tax rate is 40% and 10%. If the minimum EUAC of a challenger is $56,000 when should the machine be replaced?
The difference between the price and variable cost : The difference between the price and variable cost for A is $15; the difference between the price and variable cost for B is $10;
Calculate the yield to maturity of two bonds : Calculate the Yield to Maturity of 2 bonds that have a decimal coupon rate 11665, mature on November 30, 2020, and have a current price of 95 5/8.
What is cost of common equity and wacc : Palencia Paints Corporation has a target capital structure of 45% debt and 55% common equity, What is its cost of common equity and its WACC?
Value against the euro moving from an exchange rate : The Japanese Yen suddenly changes in value against the euro moving from an exchange rate of ¥140.541/€ to ¥139.980/€. T
Price of the machinery that the medical practice can afford : What is the price of the machinery that the medical practice can afford?
Interest arbitrage between us dollars and japanese yen yield : How much profit does investing $5,000,000 (or its yen equivalent) in a covered interest arbitrage between US dollars and Japanese yen yield?

Reviews

Write a Review

Financial Management Questions & Answers

  How much interest will you owe at end of first year

You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of .5 percent per year, compounded monthly for the first six months, increasing thereafter to 17.9 percent compounded monthly. Assume you transfer t..

  Calculate the beta portfolio

Security Percent of portfolio Beta Stock A 55% 1.04 Stock B 13% 1.18 Stock C Please calculate it 0.83 Calculate the beta portfolio.

  What is investment banking

What is investment banking? How would an investment banker assist an organization in going public? As a chief financial officer, what information would you need to select an investment banker?

  Effective annual interest rate on the lending arrangement

What is your effective annual interest rate on the lending arrangement if you borrow $49 million immediately and repay it in one year?

  Why was fema an agency in trouble at the close of the 1980s

What changes did the creation of the Department of Homeland Security bring about for the federal emergency management capacity?

  Assets at the fire–sale price

If a bank sells $100 of assets at the fire–sale price of $50, the balance sheet effect is to

  Explain the meaning of this calculated beta

Calculate the beta of stock using CAPM, if the appropriate require rate of return for w stock is 15%, the risk- free rate is 5%, and the expected rate of return for the market is 10%. Also explain the meaning of this calculated beta.

  What is the modified internal rate of return

Toyota is considering the purchase of a new robotics machine for assembling the car's engine. What is the modified internal rate of return (MIRR)?

  Generate perpetual growing stream of cash flows

Growth Enterprises believes its latest project, which will cost $99,000 to install, will generate a perpetual growing stream of cash flows. Cash flow at the end of the first year will be $7,000, and cash flows in future years are expected to grow ind..

  Future contracts price for this change in interest rates

julie wells has found a treasury bond futures contract whose underlying's duration is 8.5 years and is currently selling for 97500. interest rates are currently 8% and are expected to rise by 1.5%. what is the expected change in the future contract's..

  How long does sam have before he will retire

Sam refuses to retire until his retirement account has a balance of at least $ 403,806 . Sam refuses to make any more deposits in the account. The account currently has a balance of $ 147,092 and earns 6% per year, compounded semi-annually. How long ..

  Yield to maturity of bond is the rate of return on bond

In class you learned that the yield to maturity of a bond is the rate of return on the bond if you buy the bond today, hold it until its maturity date, and receive all the promised payments. “The yield to maturity does not take the risk of default in..

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