What happens to the bond yield to maturity

Assignment Help Financial Management
Reference no: EM131329414

(Yield to maturity) A bond's market price is $950. It has a $1,000 par value, will mature in 14 years, and has a coupon interest rate of 8 percent annual interest, but makes its interest payments semiannually. What is the bond's yield to maturity? What happens to the bond's yield to maturity if the bond matures in 28 years? What if it matures in 7 years? (Round to two decimal places.)

The bond's yield to maturity if it matures in 14 years is %

The bond's yield to maturity if it matures in 28 years is %

The bond's yield to maturity if it matures in 7 years is %

Reference no: EM131329414

Questions Cloud

What will the yield to maturity on the bond be : The yield to maturity on 1-year zero-coupon bonds is currently 6.5%; the YTM on 2-year zeros is 7.5%. The Treasury plans to issue a 2-year maturity coupon bond, paying coupons once per year with a coupon rate of 9%. The face value of the bond is $100..
Financial planning is forecasting operating cash flow : An aspect of short-term financial planning is forecasting operating cash flow and ultimately the profitability of the company in the coming period. This type of financial planning typically uses forecasted ________.
The returns on capital earned by european firms : The returns on capital earned by European firms ahve traditionally been lower thab the returns on capital earned by firms in the united states.European firms also have tended to use less debt ad hold more cash than US frims.Is there a possible link b..
What would happen to the price of the bonds over time : Alibaba Company Limited sold an issue of bonds with a 10-year maturity, a $1,000 par value, a 10 percent coupon rate, and semiannual interest payments. Suppose the condition in part a existed. Further assume that the interest rate remained at 6 perce..
What happens to the bond yield to maturity : (Yield to maturity) A bond's market price is $950. It has a $1,000 par value, will mature in 14 years, and has a coupon interest rate of 8 percent annual interest, but makes its interest payments semiannually. What is the bond's yield to maturity? Wh..
Assignment is to negotiate with your bank on new loan : As the newly appointed Finance manager, your first assignment is to negotiate with your bank on a new loan. You need one year funding for your project. Which one should you prefer?
The incremental free cash flows associated with new machine : Daily Enterprises is purchasing a $ 9.7 million machine. It will cost $ 46 000 to transport and install the machine. The machine has a depreciable life of five years using straight-line depreciation and will have no salvage value. What are the increm..
How much money will be in account at end of that time period : For the next 14 years, you decide to place $4,762 in equal year-end deposits into a savings account earning 3.28 percent per year. How much money will be in the account at the end of that time period?
What is the net interest income earned in dollars : Sun Bank USA has purchased a 8 million one-year Australian dollar loan that pays 16 percent interest annually. The spot rate of U.S. dollars for Australian dollars is $0.6250/A$1. What is the net interest income earned in dollars on this one-year tra..

Reviews

Write a Review

Financial Management Questions & Answers

  Prepare multiple-step income statement for the current year

Prepare a multiple-step income statement for the current year -  what advantages do you see in this form for the income statement and  compute Shaw's profit margin.

  What does it suggest regarding the bank''s risk exposure

Interpret the following earnings at risk data. What does it suggest regarding the bank's risk exposure? Earnings- at- Risk Interest Rate Change (%) 1 Year 2 Years + 1% shock + 2.4% + 4.9% - 1% shock - 1.7% - 5.5% - 1% yield curve inversion + 1.1% - 2..

  How much will the investor receive at maturity

How much will the investor receive at maturity? A) $30,000 B) $60,000 C) $1800 D) $20,000

  Consider an option on a non-dividend-paying

Consider an option on a non-dividend-paying stock when the stock price is $107, the exercise price is $102, the risk-free interest rate is 5% per annum, the volatility is 25% per annum, and the time to maturity is four months.

  After reviewing the types of investments companies

After reviewing the types of investments companies can make in Marketplace, what types of activities can teams do in Marketplace to continue to learn and innovate in ways to create and maintain competitive advantages over other teams?

  What ratios calculations show and how the business can use

Give your interpretation of what the ratios calculations show and how the business can use this information to improve its performance. Justify all answers.

  Bonds would have the largest percentage increase in price

Assume that all interest rates in the economy decline from 10% to 9%. Which of the following bonds would have the LARGEST percentage increase in price?

  Common stock-preferred stock and debt

Debt: 5,000 5 percent coupon bonds outstanding, $1,000 par value, 18 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. Common stock: 125,000 shares outstanding, selling for $62 per share; the beta is 1.2. Preferre..

  Evaluation of profitability of proposed project

Identifying the errors made by Linton in their project appraisal and calculating the weighted average cost of capital for Everest.

  What is the depreciation tax shield for this project

Your firm needs a machine which costs $130,000, and requires $28,000 in maintenance for each year of its 3 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 35% ..

  About the current and quick ratios

The Nelson Company has $977,500 in current assets and $425,000 in current liabilities. Its initial inventory level is $340,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term d..

  Graph price path of the clark capital common stock over time

Graph the price path of the Clark Capital common stock over time. - Is this (highly artificial) example a random walk? A martingale? A sub martingale? (Why?)

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