Semi-annual coupon bond with a par value

Assignment Help Financial Management

Reference no: EM13723808

A 7-year, 11.00% semi-annual coupon bond with a par value of $1000 may be called in 5 years at a call price of $1,155.00. The bond sells for $970.50. (Assume that the bond has just been issued.). What is its yield to maturity?

Please show work

Reference no: EM13723808

Questions Cloud

A balance sheet shows a total of no callable : A balance sheet shows a total of no callable $41 million long-term debt with a coupon rate of 8.10% and a yield to maturity of 8.50%. This debt currently has a market value of $52 million. The balance sheet also shows that the company has 9 million s..

What is maximum price you should be willing to pay for bond : Assume that you are considering the purchase of a 11-year, no callable bond with an annual coupon rate of 8.60%. The bond has a face value of $1000, and it makes semi-annual interest payments. If you require an 11.70% yield to maturity on this invest..

Describe any one concept that you heave learned : For this week's learning activity, choose and describe any one concept (PESTEL analysis) that you heave learned in this class and that you feel is applicable to your work

To pay for her college education : To pay for her college education, Gina is saving $2,000 at the beginning of each year for the next eight years in a bank account paying 12 percent interest. How much will Gina have in that account at the end of 8th year?

Semi-annual coupon bond with a par value : A 7-year, 11.00% semi-annual coupon bond with a par value of $1000 may be called in 5 years at a call price of $1,155.00. The bond sells for $970.50. (Assume that the bond has just been issued.). What is its yield to maturity?

Apple next products- is a new strategy needed : Apple's Next Products: Is a New Strategy Needed, Based on the video http://www.youtube.com/watch?v=glnTz5HD05U, fast forward to current day

What is the best estimate of the current stock price : A company paid $1.65 dividend yesterday. Its dividend growth rate is expected to be constant at 22.40% for 2 years, after which dividends are expected to grow at a rate of 6.85% forever. Its required return (rs) is 10.55%. What is the best estimate o..

Define emergent strategies of competitive organizations : Select a company of your choice and imagine you are Vice President of Research and Development. You will be presenting your R&D findings concerning the deliberate and emergent strategies of competitive organizations

Two popular approaches used by automobile dealers : The following are two popular approaches used by automobile dealers: (a) Cash Rebate Versus Low Rate Dealer Financing You are given two mutually exclusive options from the dealer on a $20,000 car: (i) $1,500 cash rebate or (ii) 36-month low rate loan..

User Account

All Pages