Current yield and capital gains yield

Assignment Help Financial Management

Reference no: EM131051603

Current yield, capital gains yield, and yield to maturity Hooper Printing Inc. has bonds outstanding with 9 years left to maturity. The bonds have an 9% annual coupon rate and were issued 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond's market price has fallen to $905.35. The capital gains yield last year was - 9.465%. What is the yield to maturity? Round your answer to two decimal places. % For the coming year, what is the expected current yield? (Hint: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.) Round your answer to two decimal places. % For the coming year, what is the expected capital gains yield? (Hint: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.) Round your answer to two decimal places. %

Reference no: EM131051603

Questions Cloud

Evaluate various segmentation criteria : Evaluate various segmentation criteria that impact target market selection. Rank the various marketing research techniques and which technique works best for any marketing research project.

Research federal and state legislation : Research federal and state legislation related to child care, parental leave, and elder care benefits for employees. Are specific trends emerging?

Treasury spot rate : Assume the six-month Treasury spot rate is 1.6% APR, and the one-year rate is 2% APR, both compounded semiannually. What is the price of a one-year $1000 par Treasury bond with 2% coupons?

How much pension expense does american express report : American Express discloses the following pension footnote in its 10-K report. How much pension expense does American Express report in its 2005 income statement?

Current yield and capital gains yield : Current yield, capital gains yield, and yield to maturity Hooper Printing Inc. has bonds outstanding with 9 years left to maturity. The bonds have an 9% annual coupon rate and were issued 1 year ago at their par value of $1,000. However, due to chang..

Present value of these payments : Suppose that you will receive $100 in 4 years (end of year 4) and every even year thereafter (year 6, 8, ...) you will receive a payment that is 5% bigger than the prior payment. What is the present value of these payments assuming the discount ..

What is the yield to call if they are called in five years : Yield to maturity and yield to call Kaufman Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 10% annual coupon payment, and their current price is $1,185. The bonds may be called in 5 years at ..

Critical analysis of the system design process related to : Critical Analysis of the System Design Process related to Project- "A Mine Facility"

How should marketers deal with language differences : What are the differences between a global consumer culture positioning, foreign consumer culture positioning, and local consumer culture positioning? What types of products are more and less environmentally sensitive?

User Account

All Pages