The bond capital gains yield if sold next year

Assignment Help Financial Management
Reference no: EM131878445

Goatboy Corporation bonds are currently priced at $1,182.56 and have 25 years until maturity. The bonds have a 12% coupon rate and pay interest semiannually. The bonds also have a $1,000 par value and a yield to maturity of 10%. Assuming that the YTM stays the same, what would be the bond's capital gains yield if sold next year?

Reference no: EM131878445

Questions Cloud

Find the financial break-even quantity : Consider a project with the following data: accounting break-even quantity = 20,400 units; find the financial break-even quantity.
How much is the stock currently worth : Netscrape Communications does not currently pay a dividend. If the discount rate is 17 percent, how much is the stock currently worth?
What is the company horizon value : what is the company's horizon value (i.e. its value of operations at year 3? what is its current value of operations (i.e. at Time 0)?
Total interest will be paid over the life of the loan : For a loan of $160,000 at 7% annual interest, how much total interest will be paid over the life of the loan?
The bond capital gains yield if sold next year : Assuming that the YTM stays the same, what would be the bond's capital gains yield if sold next year?
Stock has returns-probability range for any one given year : A stock has returns of 3 percent, 19 percent, -26 percent, and 16 percent for the past 4 years. what is the 95 percent probability range for any one given year?
What is the present value of investment : You are considering a property that is leased for 15 years. what is the present value of the investment?
Financing through bank loan or financing through lease : Do you believe a firm in a weak financial condition could most easily obtain financing through a bank loan or financing through a lease?
Calculate accounting break-even and cash break-even points : In each of the following cases, calculate the accounting break-even and the cash break-even points.

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the corporations tax liability

Calculate the corporations tax liability by using the corporation tax rate structure in the popup window.

  The americans with disabilities act applies

The Americans with Disabilities Act (ADA) applies to

  Riskier stock exceed the required return on less risky stock

By how much does the required return on the riskier stock exceed the required return on the less risky stock?

  Capital structure decision

Which one of the following is a capital structure decision?

  What effective rate of interest is being assumed

Imagine that you've just won the new University of Virginia MiniLottery, and have two options for the payment of your prize. The first is to receive three equal annual payments (the first coming immediately) of 7000 dollars apiece. The second is to i..

  Maturity risk premium on the six-year treasury security

Determinants of Interest Rate for Individual Securities. What is the maturity risk premium on the 6-year Treasury security?

  How much is the finance charge for this loan

What is the monthly payment? What is the total installment price? How much is the finance charge for this loan?

  What would account for the difference in their debt ratios

Then calculate the debt ratio of a service-oriented company, such as Cognizant Technology Solutions. Based on what you learned about leverage in this chapter, what would account for the difference in their debt ratios?

  Estimate the rate of return for two risk investments

Rate of return Douglas Keol, a financial analyst for Orange Industries, wishes to estimate the rate of return for two risk investments, X and Y.

  What is the present value

What's the present value, when interest rates are 7.5 percent, of a $80 payment made every year forever?

  Market believe will be stock price at the end of three years

Assuming the market is in equilibrium, what does the market believe will be the stock's price at the end of 3 years (i.e., what is )?

  What is dollar amount of dividends

What is the dollar amount of dividends that he received for owning the stock during the year?

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