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

  Elements that are central to the business model

Complete a full business model canvas analysis for your inspiration company as it exists today and "tell the story" of the value currently created for customers via the existing model. You must do the necessary research to fill in each of the..

  Please help me answer the questions below thanks1 how have

please help me answer the questions below. thanks.1. how have digital communication technology and the mass media

  Discuss the application of each of the course elements

The question to address is: "What have you learned about statistics?" In developing your responses, consider - at a minimum - and discuss the application of each of the course elements in analyzing and making decisions about data (counts and/or m..

  Organizational and societal functions of pr

Explain the organizational and societal functions of PR and you must use at least one credible, external source (e.g. professional organization, textbook, journal articles, etc).

  Identify-analyze and evaluate ob concepts

Explore and better understand organizational performance and effectiveness through an organizational level perspective - Identify, analyze and evaluate OB concepts/theories that create an environment (work and organization design) that leads to high..

  Explain culture differs across organizations

Culture is a powerful component of an organization's success. Culture differs across organizations. The culture of one organization is different from that of another

  Taking a census

In what types of situation is conducted a census more appropriate then sampling? When is sampling is more appropriate then taking a census?

  Illustrate what growth strategy does live nation appear

Which of the subsequent acceptances will create a contract among Travel Lust also Elaine? Illustrate what growth strategy does live nation appear to be using? Illustrate what competitive advantages do you think live nation has?

  Why has this practice persisted even in today''s economy

What are your market predictions for the future regarding the level and appropriateness of CEO pay?

  Purpose of aicpa code of professional conduct

Write a 350- to 750-word paper describing the purpose of the AICPA Code of Professional Conduct and why it is considered the foundation of ethical reasoning in accounting. Answer the following questions:

  Explain how they can be related to the context of scenario

explaining some of the marketing concepts found in this week’s readings and explain how they can be related to the context of the scenario. Comprise citations and references where appropriate?

  What two countries were embarking on a series of structural

What two countries were embarking on a series of structural social also economic reforms that were designed to completely alter its failed political also ideological history.

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