Calculate the ytm of rm 5-year bond

Assignment Help Finance Basics
Reference no: EM132034349

Rocky Mountain Inc (RM) has an outstanding corporate bond with 5 years to maturity, face value of $1000 and a credit rating of BB. The bond pays semi-annual coupon with a coupon rate of 8%. The closing price of the bond on 6/8/2018 is 98.2. as percentage of face value in the market. Bond price = Bond quote% x Bond Face Value

- How to calculate the YTM of RM's 5-year bond based on the closing pricing.

Reference no: EM132034349

Questions Cloud

Explain the role of investment banks : Explain the role of investment banks in the underwriting process.
Floating rate and fixed rate corporate bonds : Distinguish between floating rate and fixed rate corporate bonds.
Understanding and intuition : Please rank beta of the following five investment choices from the highest to lowest base your ranking on your understanding and intuition):
Calculate the profitability index for project : Calculate the profitability index for project x. calculate the profitability index for project y.
Calculate the ytm of rm 5-year bond : How to calculate the YTM of RM's 5-year bond based on the closing pricing.
The net present value method of investment analysis : Determine the net present value using the net present value method of investment analysis.
Calculate the amount of the firm gross profit : Calculate the amount of the firm's gross profit.
What is the amount of the firm ebit : Advantage First Corporation has sales of $4,685,660; income tax of $481,908; the selling, general and administrative expenses of $234,872
The put-call parity holds : See if the Put-Call Parity holds. If not, tell me your arbitrage strategy and the exact profit you would receive.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the operating breakeven point in units

The firm has annual interest charges of $6,000, preferred dividends of $2,000, and a 40% tax rate.

  Create a graph that shows how the payments are divided

Create a graph that shows how the payments are divided between interest and principal repayment over time

  How much was the cash discount

A man received an invoice dated March 9, with term 4/10, n/30 amounting to $510. He paid the bill on March 12. How much was the cash discount?

  Stock performance and equity investments

Stock Performance and Equity Investments

  Portfolio effect of merger

Suppose the Knight Corporation is considering the acquisition of Day, Inc. The expected earnings per share for the Knight Corporation will be $4.00 with or without the merger. Calculate the coefficient of variation for the Knight Corporation before..

  At the time these betas were developed reasnoble estimates

several years ago the value line investment surveynbsp reported the following market betas for the stocks of selected

  You will receive a 100000 inheritance in 15 years your

you will receive a 100000 inheritance in 15 years. your investments earn six percent per year compounded annually. to

  Withdrawing from the account

You have a savings account in which you leave the funds for one without adding to or withdrawing from the account.

  What was the stock price following the split

If the firm's total market value increased by 6% as a result of increased liquidity caused by the split, what was the stock price following the split?

  If the cost of capital is 10 percent should the investment

hamilton control systems will invest 90000 in a temporary project that will generate the following cash inflows for the

  What are the tax consequences for the fan in given cases

An interesting set of tax questions came up in 1998 when baseball stars Mark McGwire and Sammy Sosa were getting close to breaking the record for the number.

  Do you think us dollar is more likely to strengthen

Do you think the U.S. dollar is more likely to strengthen or weaken over the next few months? - Explain your reasoning.

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