How many years is it until this bond matures

Assignment Help Financial Management
Reference no: EM131064775

The Lo Sun Corporation offers a 5.0 percent bond with a current market price of $879.50. The yield to maturity is 6.14 percent. The face value is $1,000. Interest is paid semiannually. How many years is it until this bond matures?

Reference no: EM131064775

Questions Cloud

How many homes were sold during the last month : How many homes were sold during the last month?
Web for sources on exploratory data analysis : Search the web for sources on Exploratory Data Analysis. How does this approach differ from a more ‘classical' approach to analysis?
Use more preferred stock financing : Mullineaux Corporation has a target capital structure of 70 percent common stock, 5 percent preferred stock, and 25 percent debt. Its cost of equity is 14 percent, the cost of preferred stock is 6 percent, and the cost of debt is 7.5 percent. The com..
Statements is accurate for levered firm : Which one of the following statements is accurate for a levered firm?
How many years is it until this bond matures : The Lo Sun Corporation offers a 5.0 percent bond with a current market price of $879.50. The yield to maturity is 6.14 percent. The face value is $1,000. Interest is paid semiannually. How many years is it until this bond matures?
Credit card at nominal interest rate : Consider a college student with the following debts: - $3,500 on a credit card at a nominal interest rate of 20.9% compounded monthly - Monthly car payments of $312 at 12% nominal interest compounded monthly and 16 payments to go, What would the mont..
Find a counterexample to show that the equation : Prove that (sin2ω-cos2ω/tanωsinω + cosωtanω) = cosω - cotω cosω. Find a counterexample to show that the equation sec α - cos α = sinα secα is not an identity. Write tan(π/4 - β) as a function of β only
Pays current dividend : Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 18% for two years and then at 5% thereafter. If the required return for Deployment Specialists is 8.0%, what is the intrinsic value of Deployment Specialists sto..
Two-asset portfolio including stock and risk free security : A friend says she expects to earn 13.50% on her portfolio with a beta of 1.50. You have a two-asset portfolio including stock x and a risk free security. The expected return of stock x is 10.50 and the beta is 1.10. The expected return on the risk fr..

Reviews

Write a Review

Financial Management Questions & Answers

  You recently graduated from college and your job search led

you recently graduated from college and your job search led you to east coast yachts. since you felt the companys

  Risk and return-coefficient of variation

Risk and Return, Coefficient of Variation. Based on the following information, calculate the coefficient of variation and select the best investment based on the risk/reward relationship: Std Dev. Exp. Return Company A 10.4 13.2 Company B 7.6 8.7

  Dividend on the presplit stock

The company with the common equity accounts shown here has declared a 4-for-one stock split when the market value of its stock is $33 per share. The firm’s 80-cent per share cash dividend on the new (post split) shares represents an increase of 25 pe..

  Which liabilities require collateral

Banks must pledge collateral against four different types of liabilities. Which liabilities require collateral, what type of collateral is required, and what impact do the pledging requirements have on a bank's asset liquidity?

  Bonds are the only debt outstanding for the firm

You are analyzing the after-tax cost of debt for a firm. You know that the firm’s 12-year maturity, 9.10 percent semi-annual coupon bonds are selling at a price of $767.17. These bonds are the only debt outstanding for the firm. What is the current Y..

  Effective interest rate

Effective interest rate. You borrow $55,000; the annual loan payments are $3,180.66 for 30 years. What interest rate are you being charged?

  Calculate the total debt service and interest payment

The asking price for a suburban office building is $5,000,000; rents are estimated at $550,000 during the first year and are expected to grow at 2 percent per year thereafter. Vacancies and collection losses are expected to be 6 percent of rents. Cal..

  What would be the annual cost of jet fuel

Jet fuel: 32% of operating expenses per ASM as reported in most recent annual report, operating expenses per ASM (cents) = 12.5, number of ASM per year is 58055805 ASM. What would be the annual cost of jet fuel if Southwest Airlines offer three fligh..

  Project that requires an initial cash outlay for equipment

Carter & Carter (C&C) is considering a project that requires an initial cash outlay for equipment of $6.3 million. The equipment will be depreciated to a zero book value over the 4-year life of the project. At the end of the project, C&C expects to s..

  What is the expected cost of college in each of four years

A father is now planning a savings program to put his daughter through college. She is 13 and plans to enroll in college in 5 years, and she should graduate 4 years later. What is the expected cost of college in each of the 4 years? How much will nee..

  According to the dividend growth model

According to the dividend growth model, if you expect the market rate of return to fall for all equity securities, then you can expect

  What was your dollar return on this investment

You purchased 310 shares of a particular stock at the beginning of the year at a price of $76.73. The stock paid a dividend of $1.65 per share, and the stock price at the end of the year was $83.24. What was your dollar return on this investment?

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