What is bonds nominal yield to call

Assignment Help Financial Management

Reference no: EM131332706

A. Vidal Corporation has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,120. What is the bond’s nominal yield to call? show work.

Reference no: EM131332706

Questions Cloud

Would the woman have a case if it were taken to court : Speculate what factors you might have to address and how would you test to prove that there was a connection. Would the woman have a case if it were taken to court? Why, or why not

Calculate the required return for each stock : Landon Stevens is evaluating the expected performance of two common stocks, Furhman Labs, Inc., and Garten Testing, Inc. The risk-free rate is 5.5 percent, the expected return on the market is 12.8 percent, and the betas of the two stocks are 1.7 and..

What would risk-free rate have to be for two stocks : Stock Y has a beta of 1.45 and an expected return of 13.50 percent. Stock Z has a beta of .70 and an expected return of 10.00 percent. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?

What was the last dividend : S. Ramos Company’s stock has a required rate of return of 11.50%, and it sells for $25.00 per share. Goode's dividend is expected to grow at a constant rate of 7.00%. What was the last dividend, D0? show work.

What is bonds nominal yield to call : Vidal Corporation has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,120. What is th..

What is the firms cost of internal common equity : The common stock for the Bestsold Corporation sells for $59. If a new issue is sold, the flotation costs are estimated to be 8 percent. The company pays 70 percent of its earnings in dividends, and a $6.30 dividend was recently paid. What is the firm..

Construct a belief space in the described situation : Construct a belief space in which the described situation is represented by a state of the world and indicate that state.

Prepare return as if you were preparing it for actual client : Prepare the return as if you were preparing it for an actual client. All necessary forms and schedules should be attached to the return, and properly and neatly completed.

Rate of return for the global pepe investment fund : Consider the following information and then calculate the required rate of return for the Global Pepe Investment Fund (GPIF), which holds 4 stocks. The market’s required rate of return is 13.25%, the risk-free rate is 7.00%, and the Fund’s assets are..

User Account

All Pages