Compute the approximate yield

Assignment Help Finance Basics
Reference no: EM133069120

The Pioneer Petroleum Corporation has a bond outstanding with an $70 annual interest payment, a market price of $810, and a maturity date in five years. Assume the par value of the bond is $1,000.

Find the following: (Use the approximation formula to compute the approximate yield to maturity and use a calculator or Excel to compute the exact yield to maturity. Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)

a. Coupon rate %

b. Current yield %

c-1. Approximate yield to maturity %

c-2. Exact yield to maturity %

Reference no: EM133069120

Questions Cloud

Describe interest rate changes affect the savings rate : Describe how interest rate changes affect the savings rate in the United States. How do banks adjust interest rates on deposits and loans? What would your targe
Compute the cost of internal equity : A company is expected to pay a dividend of $1.90 next year. Dividends are expected to grow at a constant rate of 3% per year, and the stock price is currently $
Up and down factors in the binomial model : The up and down factors in the binomial model are analogous to the volatility. True or False?
How long does the company have to wait : The firm earns 7 percent compounded monthly on the funds it saves. How long does the company have to wait before expanding its operations
Compute the approximate yield : The Pioneer Petroleum Corporation has a bond outstanding with an $70 annual interest payment, a market price of $810, and a maturity date in five years. Assume
Expected overall payoff of bank : Consider two local banks. Bank A has 82 loans? outstanding, each for? $1.0 million, that it expects will be repaid today. Each loan has a 4% probability of? def
What is the role of internal audit : Discuss the risks, benefits, and audit issues related to cloud computing. What is the role of internal audit for enterprise-wide risk management
Determining the new common equity : Levine Ross Inc. (LRI) has the following targeted capital structure: debt=25%, preferred stock=15% and common stock=60%. LRI's tax rate is 40%, and investors ex
Prioritize the investments in the order of return : You are trying to choose among three investments described below: Prioritize the investments in the order of return.

Reviews

Write a Review

Finance Basics Questions & Answers

  Finance questions1 compute the present value of a

finance questions1. compute the present value of a two-period annuity of 1 per period if the discount rate is 10

  Effects ?om the mark-to-market rule

Li Ping Sledges has today invested in a ISO-day bank bill with a face value of $10 million, priced to yield 3 .25 per cent per annum. Simultaneously she has sol

  Evaluate the portfolio weights of each stock

If you own 500 shares of Company A at $19.25, 800 shares of Company B at $42.22, and 300 shares of Company C at $28.44, what are the portfolio weights.

  Annual continuously compounded rate of interest

If the stock is currently priced at $43.40, what is the annual continuously compounded rate of interest?

  Calculate the herfindahl-hirschman index

There is an industry with 16 firms. There are two large firms with 35% market share each, four medium-sized firms with 5% market share each

  Pay-for-performance compensation plan

How would you go about deciding whether to use a job-based, skills-based, or pay-for-performance compensation plan for employees in a textile manufacturing plan

  Reconciles budget profit to actual profit

(a) Produce a statement that reconciles budget profit to actual profit for April in as much detail as possible. (b) Discuss the advantages and disadvantages of your statement with regard to responsibility accounting.

  What is the 1-day change in value related

A. What is the 1-day change in value related to the proposed terms.

  What is the yield to maturity

The Fishing Pier has 6.60 percent, semi-annual bonds outstanding that mature in 12 years. The bonds have a face value of $1,000 and a market value of $1,047. What is the yield to maturity?

  Degree of leverage of this company

A firm has a sales level target of $200,000. If the variable cost is $120,000 and the fixed cost is $40,000. Find the degree of leverage of this company

  Use the du pont system to calculate the return on assets

Insert the appropriate dollar amounts wherever possible. c. Use the Du Pont system to calculate the return on assets for the two years, and determine why they changed.

  What is the most you can pay for a 91 day treasury bill that

If you want to earn an annualized discount rate of 3.5%, what is the most you can pay for a 91-day Treasury bill that pays $5,000 at maturity?

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