User Account

All Pages

New yield to maturity on the bond

Assignment Help Business Management
Reference no: EM131075105

You buy a(n) 5.5% coupon, 8-year maturity bond for $985. A year later, the bond price is $1,160.

a. What is the new yield to maturity on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. What is your rate of return over the year? (Round your answer to 2 decimal places.)

Reference no: EM131075105

Questions Cloud

Calculate the present value : Use the PV function within Excel to calculate the present value of a 5 year annuity which pays $7,500 per year (starting next year) and with an interest rate of 12%? (Note, as a check, your answer in part (a) minus your answer in part (b) should e..
Describe importance of cash flow projection relative to debt : Explain the relationship between life cycle stage and long-term debt. Describe the importance of cash flow projections relative to debt financing.
Additional bonds to the public at face value : General Matter's outstanding bond issue has a coupon rate of 11.8%, and it sells at a yield to maturity of 9.45%. The firm wishes to issue additional bonds to the public at face value. What coupon rate must the new bonds offer in order to sell at ..
Preferred wacc weighting : "Since the cost of debt is usually lower than the cost of equity, the preferred WACC weighting would include the highest amount of debt possible."
New yield to maturity on the bond : a. What is the new yield to maturity on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is your rate of return over the year? (Round your answer to 2 decimal places.)
Develop and describe your analytical framework : Develop and describe your analytical framework. Evaluate a current leadership scenario using your analytical framework. Describe the conclusion you drew from your critical analysis and critical evaluation of the readings.
Design a sustainability plan for company : Examine the possible advantages and difficulties in integrating your sustainability portfolio into the company's strategy.
The allowable power dissipation of a transistor : 1. What factor places a limit on the allowable power dissipation of a transistor?
Presence of some form of price-setting agreement : Discuss the common allegation that when all firms in an industry are charging the same price, this indicates the absence of competition and the presence of some form of price-setting agreement.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd