What is its yield to maturity

Assignment Help Financial Management
Reference no: EM132017220

A bond has a $1,000 par value, 15 years to maturity, and a 8% annual coupon and sells for $1,080.

What is its yield to maturity (YTM)? Round your answer to two decimal places.

%

Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

Reference no: EM132017220

Questions Cloud

What is amount paid on treasury bond futures contract : What is the amount paid on a Treasury bond futures contract if the quote is 94-16?
Common stock valuation-relative valuation : Common Stock Valuation, No unread replies. No replies. Relative valuation - gold and silver Although gold and silver are commodities,
What is the company market capitalization : What is the company's market capitalization, assuming the market is at equilibrium?
Spot rate of us dollars : What should the spot rate of U.S. dollars for BPs be at the end of the year in order for the bank to earn a net interest income of $230,000
What is its yield to maturity : What is its yield to maturity (YTM)? What will the price be 3 years from today?
Common stock valuation : Assume a dividend growth rate of 4%, that your required rate of return for the stock is 11% and that the market is at equilibrium.
At what forward rate is this arbitrage eliminated : At what forward rate is this arbitrage eliminated?
What is the bond current market price : Madsen Motors's bonds have 14 years remaining to maturity. What is the bond's current market price?
What would the book value per share : What would the book value per share of Ron's Rodents Co.be if the frm had 50,000 shares of common stock outstanding?

Reviews

Write a Review

Financial Management Questions & Answers

  Explain a economic indicator

Explain a/an economic indicator used to determine the health and direction of our economy. Discuss whether the indicator is cyclical or counter cyclical. What are some other indicators of how well the economy is doing not mentioned directly in the te..

  Fundamentals of futures and options markets

Fundamentals of futures and options markets. Machaincs of future markets.

  What is the erosion cost

Turkey Hill Motor Homes currently sells 1,200 Class A motor homes, 2,600 Class C motor homes, and 4,000 pop-up trailers each year. What is the erosion cost?

  Companies typically pay dividends to their bank subsidiaries

Bank Holding Companies typically pay dividends to their bank subsidiaries. This is an important source of liquidity for banks.

  What was his total return for this investment

Three years ago, James Matheson bought 260 shares of a mutual fund for $29 a share. What was his total return for this investment?

  What is the current share price for the stock

Universal Laser, Inc., just paid a dividend of $3.55 on its stock. The growth rate in dividends is expected to be a constant 6 percent per year, indefinitely. Investors require a return of 14 percent on the stock for the first three years, a rate of ..

  Compute the incremental income after taxes

Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $130,000 if credit is extended to these new customers.  Compute the incremental income after taxes.  What will John..

  Project evaluation-new seven-octave voice emulation implant

Project Evaluation [LO1] Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year Unit Sales 1 82,000 2 95,000 3 109,000 4 104,000 5 85,000 Production of the implants will require $1,610,000 in n..

  Creative mortgage schemes

Justify Should there be limitations placed by Congress and state legislatures on the use of ARMs and other creative mortgage schemes?

  What is the price per share of the company stock

Ward Corp. is expected to have an EBIT of $1,950,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $166,000, $87,000, and $116,000, respectively. All are expected to grow at 15 percent per year ..

  Preparing the organization to shift from a catalog

Explain senior management's role in preparing the organization to shift from a catalog-based retailer to an Internet retailer. Provide evidence of whether the transition was seamless or problematic from a management perspective. Provide support fo..

  Higher return means that the public company has lower risk

Higher return means that the public company has lower risk. Product entails creating value.

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