Find the yield to maturity of the bond

Assignment Help Financial Accounting
Reference no: EM132504356

Question 1: A company has just raised $10 million by issuing 14000 18-year 10% bond at par. It's predicted that the market yield of this type bonds would be 2 per cent lower than coupon rate after 3 years. What will be the expected price of this bond after 3 years if the bond is paying coupon semi-annually?

Question 2: An 8-year debenture of $1000 face value with12% coupon is currently selling for $1,021.84. Find the yield to maturity (YTM) of this bond.

Question 3: A 12-year 9% $1000 bond is paying semi-annual coupon and currently selling for $972.54. What is YTM of this bond?

Reference no: EM132504356

Questions Cloud

What net return did you earn on share investment : What net return did you earn on your share investment? Assess this return compared with the overall market return.
Find the holding-period return for a 1-year investment : A newly issued bond pays its coupons once annually. Its coupon rate is 4%, its maturity is 10 years, and its yield to maturity is 7%.
What documents will you review to check : You discover that you are expected to make a supplier payment of $656.98 tomorrow. What documents will you review to check that this money should be paid?
What is the net advantage of reworking the keyboards : Alternatively, the keyboards could be sold "as is" for $7,200. What is the net advantage or disadvantage of reworking the keyboards?
Find the yield to maturity of the bond : An 8-year debenture of $1000 face value with12% coupon is currently selling for $1,021.84. Find the yield to maturity (YTM) of this bond.
What will be the expected price of the bond : The market yield of this type bonds would be 1.2 per cent lower than coupon rate after 3 years. What will be the expected price of this bond after 3 years?
Estimate the minimum price the owner of the division : Using a tax rate of 36 percent, estimate the minimum price the owner of the division should consider for its sale.
Describe an auditing procedure : Summarize the guidance of the FASB regarding recognition of revenue on contracts - Describe two techniques that management of Processing Solutions might use
Estimate the target maximum acquisition price : Estimate the target's maximum acquisition price. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the breakeven level in batteries

Alex Miller, Inc. sells car batteries to service stations for an average of $30 each. The variable cost of each battery is $20 and monthly fixed manufacturing costs total $10,000. Other monthly fixed costs of the company total $8,000. What is the bre..

  Calculate lopezs cost recovery deduction for 2015

Calculate Lopez's cost recovery deduction for 2015 if the building is:- Classified as residential rental real estate.- Classified as nonresidential real estate.

  Question ty wilkins and desmond drury have decided to form

question ty wilkins and desmond drury have decided to form a partnership. they have agreed that drury is to invest

  Prepare a process cost report for the mixing department

Using the FIFO costing method, prepare a process cost report for the Mixing Department for January and explain how the analysis for the Cooking Depart­ment will differ from the analysis for the Mixing Department.

  Minimum working capital strategy

When the length of the financing is directly related to the life of the asset being financed, the firm is said to follow a: policy of maturity matching. restrictive financing strategy. matched depreciation strategy. minimum working capital strategy.

  Budgeting and financing the organisation

Week 5 Key Concept Exercise Budgeting and financing the organisation Print Page This week's Key Concept Exercise is intended to get you thinking about the use of budgeting in an organisation. There are many different types of budgets. This week, you ..

  Portion earning a simple interest rate

Jo invested $63,000. A portion earning a simple interest rate of 5% per year and the rest earning a rate of 7% per year. After one year the total interest earned on these investments was 3890 dollars. How much money did he invest at each rate?

  As indicated in the following memo lack of information loi

as indicated in the following memo lack of information loi has identified obligations to handle and dispose of asbestos

  Prepare a classified statement of financial position

Prepare a classified statement of financial performance for 2012 and 2013 - prepare a classified statement of financial position for 2012 and 2013.

  Which set of cash flows is worth more now

Decision #1:   Which set of Cash Flows is worth more now? Assme that your grandmother wants to give you generous gift.  She wants you to choose which one of the following sets of cash flows you would like to receive:

  Discuss the advantages of the concept as it relates to eec

Respond to the following questions on the costing concept that you selected: Provide the definition of the concept. Discuss how and when the concept could be used by EEC. Discuss the advantages and disadvantages of the concept as it relates to EEC.

  Unrealized gain-loss are reflected on the balance sheet

If the company’s intention is to turn around the investment and generate a short term profit, then this is considered the asset is a srading Security and is reflected on the Income Statement; unrealized gain/loss are reflected on the Balance Sheet as..

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