Compute the? bond''s yield to maturity

Assignment Help Finance Basics
Reference no: EM131795380

Fingen's 17?-year, ?$1,000 par value bonds pay 9 percent interest annually. The market price of the bonds is ?$1,070 and the? market's required yield to maturity on a? comparable-risk bond is 7 percent. (round to nearest cent or 2 decimal places)

a. Compute the? bond's yield to maturity.

b. Determine the value of the bond to? you, given your required rate of return.

c. Should you purchase the? bond?

Reference no: EM131795380

Questions Cloud

What is the investor profit or loss : An investor with no other positions sells 1 ABC Jan 45 call at 2.50. If the option expires when the stock is trading at 44.50.
Find the level of significance at cola taste test : He gets 6 identifications right out of 20. Can he tell cola A from cola B at the 0.05 level of significance? Explain.
What is your yield to? maturity : Abner? Corporation's bonds mature in 25 years and pay 7 percent interest annually. If you purchase the bonds for ?$725, what is your yield to? maturity?
Determine the amount of cost in the raw materials : Required: Determine the amount of cost in the Raw Materials, Work in Process, and Finished Goods Inventory as of the date of the storm
Compute the? bond''s yield to maturity : The market price of the bonds is ?$1,070 and the? market's required yield to maturity on a? comparable-risk bond is 7 percent. (round to nearest cent or 2 deci
Calculate the reward-to-volatility ratio : Jack and Jill run a fund called JJ. The expected return of the JJ fund is 18% and standard deviation is 28%. The risk-free T-bill rate is 5%.
What individual stress-management strategies : What individual stress-management strategies could you use to counteract the effects of this stress?
Can he tell butter from margarine at the 0.05 level : He is blindfolded and given small bites of English muffin to identify. At each trial, an English muffin with either butter or margarine is randomly chosen.
What journal entry would wolf creek make on december : What journal entry would Wolf Creek make on December 31, 2014, if it uses straight-line depreciation

Reviews

Write a Review

Finance Basics Questions & Answers

  Discuss short-run unemployment and long-run growth

In 2011, when the U.S. unemployment rate was over 9%, President Barack Obama said, "There are some structural issues with our economy where a lot of businesses.

  Formula for calculating the working capital

How is the formula for calculating the working capital in the airthread case? On the exhibits it says 41,67x on the accounts retrievable, 154,36x for the days sales equip. rev., prepaid expenses 1.38%, accounts payable 35.54x, 14.01x for deferred ..

  What you would put into thing like investment and retirement

Next, consider the future, look at how you can make the money work for you. Consider what you would put into things like investments, retirement, property, etc.

  Explain what were some of the credit risks that arose

What were some of the credit risks that arose from the 2008 financial crisis. How were banks affected by the credit risks. How were individuals and businesses affected by the credit risks

  Form of business organization

Riki, the owner of Simply Sushi, is a sole proprietor. What are the chief characteristics, advantages, and disadvantages of this form of business organization

  Computation of firm roe

During the latest year Ruth Corp. had sales of $300,000 and a net income of $20,000, and its year-end assets were $200,000. The company's total debt to total assets ratio was 40 percent

  Company x has 100 shares outstanding it earns 1000 per year

company x has 100 shares outstanding. it earns 1000 per year and announces that it will use all 1000 to repurchase its

  After-tax cost of debt on the? bond

The company is in the 18 percent marginal tax bracket. What is the? firm's after-tax cost of debt on the? bond?

  Calculate thelma and louie net income for the year

The company paid dividends of $33 million to the preferred stockholders and $73 million to common stockholders. Calculate Thelma and Louie's net income for the year.

  What is the minimum rated size of air compressor

A compressed air system consists of a compressor and receiver, 1500 ft (458 m) of 4-in. (1lO.2-cm) pipe, two gate valves, six standard elbows, and a manifold.

  What is the quarterly mortgage payment

What are the interest repayments over the first year of life of the mortgages? What are the principal repayments? Construct a 30-year CMO using this mortgage.

  The portfolio beta is 12 the risk-free rate is 5 percent

a portfolio manager has a 10 million portfolio which consists of 1 million invested in 10 separate stocks. the

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