Calculate the ytm for a bond

Assignment Help Finance Basics
Reference no: EM133491862

Question 1: Using excel calculate:

A. Mr. Harsya wants to calculate the present value of a 10 year old PT.ABC bond with a face value of Rp. 1,000,000 which pays 6% semi-annual interest (coupon rate). The required annual return on these bonds is 8%. What is the value of the bond?
B. Calculate the YTM for a bond worth IDR 900,000, a nominal value of IDR. 1,000,000, 8% coupon rate, with semiannual interest payments, and 10 years old

Question 2: PT. DEF has always been giving dividends to its investors since 10 years ago, the dividend in the first year was $1, 10 years later the company's dividend was $3. This increase in dividends can be assumed to be constant for the foreseeable future. With a discount rate of 6%, calculate the value of PT. DEF.

Question 3: If PT. This year HIJ is paying out $10 in dividends. It is assumed that in the next 3 years the dividend will increase by 25%, and after that (4th year onwards) the dividend will only increase by 5%. Calculate the value of PT. HIJ?

Reference no: EM133491862

Questions Cloud

Briefly define the equator principles : Briefly define the Equator Principles, the Global Reporting Initiative, and the Carbon Disclosure Project and explain what they are and why they were created
Is it difficult to consistently outperform the benchmark : Is it difficult to consistently outperform the benchmark? Why, or why not? Discuss how a MNC would typically utilize the FX markets compared to a trader
Define a health maintenance organization : Define a health maintenance organization (HMO). Give some examples of companies that are major HMO players in the market place
How will those firms fit in your strategic plan to succeed : discuss who will be responsible for actually producing the products or services in your organization. What suppliers will be needed and how will those firms
Calculate the ytm for a bond : Calculate the YTM for a bond worth IDR 900,000, a nominal value of IDR. 1,000,000, 8% coupon rate, with semiannual interest payments, and 10 years old
Explain the concept of a knowledge worker : Explain the concept of a knowledge worker. - Define and explain nursing informatics and highlight the role of a nurse leader as a knowledge worker.
Discuss impact of society culture gender or other dimensions : PSY 101- Discuss the impact of society, culture, gender, or other dimensions of variation, either on the person or the situation.
The general counsel of eHarbour : Daniel Hudson, the general counsel of eHarbour, has received a cease-and-desist letter from the general counsel at eBay, the popular online seller.
Estimate metcos weighted average cost of capital : The risk-free rate is 1.5% p.a., the market risk premium is 6.5% and the corporate tax rate is 30%.Estimate METCO's weighted average cost of capital (WACC)

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the monthly payment

Bill has just graduated from TAMU and is tired of living in a cramped apartment. However, by reducing housing costs while at college he managed to save enough.

  What is the firms payout ratio and sustainable growth rate

Rosevat Corp. has EPS of $5 and an ROE of 12%. Its current dividends is $2 per share. What is the firm's payout ratio and sustainable growth rate?

  Explain what happens to demand and supply

Explain what happens to demand, supply, quantity demanded, and/or quantity supplied, ceteris paribus, given each of the following events:

  Calculate respective dollar durations for four securities

There are four securities as summarized in the below table.

  What is the expected return on a portfolio comprised

What is the expected return on a portfolio comprised of $5,000 invested in stock A and $5,000 invested in stock B (in percent)?

  Compute the present value of receiving 2300 per year with

suppose the term structure of risk-free interest rates is as shown below term1 year2 years3 years5 years7 years10

  How often would the cycle turn over in a year

Estimate the average length of the firm's short-term operating cycle. How often would the cycle turn over in a year?

  Estimate the present value of the tax benefits

The cost of capital is 10%, and the firm's tax rate is 40%. Estimate the present value of the tax benefits from depreciation (closest to).

  What is the first-year debt coverage ratio

You are an employee of University Consultants, Limited, and have been given the following assignment. You are to present an investment analysis of a small retai

  Calculate the present value of investment

The United Kingdom has a consol bond that pays a $50 coupon every 6-months (semi-annually), forever. If the next payment

  Filing federal income tax returns

According to the IRS web site, the three forms used for filing Federal Income Tax returns are the 1040EZ, 1040A, and 1040. Each form has certain uses and limitations.

  Discuss financing options for fast food business

Discuss financing options for fast food business. Which is a good fit for this business and why? Be specific.

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