Considering investing in corporate bond

Assignment Help Financial Management
Reference no: EM13911237

You are considering investing in a corporate bond with the following parameters: 15 years to maturity, 12% coupon paid annually, 10% YTM, and a $1,000 par value. What is the yield value of a 32nd of this bond?

Reference no: EM13911237

Questions Cloud

What is the net present value of this decision : A manufacturer of video games develops a new game over two years. This costs $850,000 per year with one payment made immediately and the other at the end of two years. When the game is released, it is expected to make $1.2 million per year for three ..
Four taxes as applied to the employees gross earning : BMX Company has one employee. FICA social security taxes are 6.2% of the first 117,000 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and four taxes as applied to the employee’s gross earning fo..
Who should decide what is good and what is bad : Does a firm have the right to create wants and try to persuade consumers to buy goods and services they didn't know about earlier?
Bond portfolio has a target duration : The manager of a $30 million bond portfolio has a target duration of 13 years for a portfolio with a current duration of 18 years. The manager can add zero coupon bonds with 15 years to maturity, perpetuities with a 15% YTM, or both to the portfolio ..
Considering investing in corporate bond : You are considering investing in a corporate bond with the following parameters: 15 years to maturity, 12% coupon paid annually, 10% YTM, and a $1,000 par value. What is the yield value of a 32nd of this bond?
Describe the features you would include in your new gss : Describe the features you would include in your new GSS software.
Estimate that still makes the decision to mine worthwhile : A mining company will spend $28 million in order to exploit a low-grade placer deposit of gold ore. They estimate the deposit will produce profits of $6 million per year for six years. They calculate the net present value (NPV) using an estimated cos..
How is decision making in a group environment different : How is decision making in a group environment different from individual decision making, and why are information systems that assist in the group environment different? What are the advantages and disadvantages of making decisions as a group?
What is the behavioural finance challenge to this hypothesis : What does the efficient market hypothesis (EMH) say about security prices, their reaction to new information, and investor opportunities to profit? What is the behavioural finance challenge to this hypothesis? Do you personally believe the EMH argume..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the price of a perpetual bond with a par value

What is the price of a perpetual bond with a par value of $1,000.00 and a coupon rate of 7.25% (semi annual coupon)? The bond has a nominal yield to maturity of 6.90%.

  What is the current bond price

Great Wall Pizzeria issued 8-year bonds one year ago at a coupon rate of 6.1 percent. If the YTM on these bonds is 7.5 percent, what is the current bond price?

  As the risk of stock investment increases-investors

As the risk of a stock investment increases, investors'

  The role of financial management in a firm

The Role of Financial Management in a Firm

  The present value interest factor for an ordinary annuity

The present value interest factor for an ordinary annuity is:

  Established company with a traditionally based pay system

Assume you work for an old established company with a traditionally based pay system. Would you rather have a seniority-based pay system or a merit-based pay system and explain why?

  What is the market price of this preferred stock today

High Towers has an issue of preferred stock outstanding with a par value of $200. It pays an annual dividend equal to 10 percent of par value. If the required return on High Towers preferred stock is 5 percent, and if the company pays its next divide..

  What is the weighted average expected rate of return

What is the weighted average expected rate of return for all investments made in January and what is the weighted average actual rate of return for all investments ending in December?

  Calculated based on an apr of compounded monthly

You are considering buying a house for $200,000. You have $40,000 in your bank account which pays 1% APR compounded monthly. If you contribute 10% of the price of the house as a down payment, the terms of your mortgage will be an original balance of ..

  Issues zero coupon bonds on the market

Atlantis Fisheries issues zero coupon bonds on the market at a price of $492 per bond. These are callable in 9 years at a call price of $550. Using semi annual compounding, what is the yield to call for these bonds?

  What will be the beta of the new portfolio

You hold a diversified portfolio of a $10,000 investment in each of the different common stocks (I.e, your total investment is$150,000). The portfolio beta is equal to 1.0, you have decided to sell one of your stocks which has a beta equal to 1.8 for..

  What was the actual average annual percentage rate

In exactly 15 months a bill of $21,200 is due. Today you deposit money such that if the account earns a target rate of return of 8.90% per annum, compounded monthly, the bill is perfectly financed. No other deposits or withdrawals have been made. You..

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