What is the bond yield to maturity

Assignment Help Financial Management
Reference no: EM131853718

1. Analyze the 10-year, 8% coupon rate (semi-annual payment), $1,000 par value bond. The bond currently sells for $1,318. What’s the bond’s yield to maturity?

5.36%

4.10%

2.05%

6.15%

2. Analyze the 10-year, 8% coupon rate (semi-annual payment), $1,000 par value bond. The bond currently sells for $1,318. What’s the bond’s current yield, and capital gain yield?

6.07%, 0.71%

6.07%, -0.71%

6.07%, 1.97%

6.07%, -1.97%

3. An 8% $1,000 bond matures in 13 years, pays interest annually, and has a yield to maturity of 9.5%. What is the current market price of the bond?______

$889.35

$1,000

$890.63

$903.62

4. If you earned a rate of return of 8% on your bond investments last year. During that time the inflation rate was 2.68%. What is your real rate of return?

5.18%

4.17%

3.68%

6.20%

Reference no: EM131853718

Questions Cloud

Make an adverting brief which client will give : DEVELOP AN ADVERTISING CAMPAIGN Assessment - Advertising brief: Make an Adverting Brief which client will give to you to make their advertisement campaign
What is the current book value of these assets : The MACRS table values .2000, .3200, .1920, .1152, .1152, and .0576 for Years 1 to 6, respectively. What is the current book value of these assets?
Write comment on the given statement : Comment on this statement: "A poor location may be such a liability that even superior retailers cannot overcome it." Is it always true?
What was the rate of return to shareholders : If share price changes from $15 to $12 per share, and pays a dividend of $4 per share, what was the rate of return to shareholders?
What is the bond yield to maturity : Analyze the 10-year, 8% coupon rate (semi-annual payment), $1,000 par value bond. The bond currently sells for $1,318. What’s the bond’s yield to maturity?
What are the transportation documents : What are the transportation documents you will need to complete to ship from the USA to India in ocean containers by a competitive shipping line?
What is the purpose of the wbs : Class, rather than continue the discussion of Risk Management, I would like to start this thread by discussing an important PM tool, the Work Breakdown.
Circuit breakers to break even : Neucon company needs to sell 6,000 circuit breakers to break even.
Discuss the steps of closing the project : Closing a Project - Closing the project is routine once you have the client's agreement that all deliverables have been met according to scope outlined.

Reviews

Write a Review

Financial Management Questions & Answers

  Interest expense would be recorded when making first payment

A new asset was purchase and financed through a $10,000 loan. It bears interest at 12% annually with equal monthly payments for 2 years (24 months) $470.43 per month in arrears. How much interest expense would be recorded when making the first paymen..

  Suppose the average return on asset

Suppose the average return on an asset is 11.6 percent and the standard deviation is 21.2 percent. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel to determine the probability that in any given year you wi..

  What is yield to call of year to maturity bond

What is yield to call of 30 years to maturity bond that pays coupon rate of 17.13 percent per year, has 1 $1,000 par value and is currently priced at $1,162?

  Compute an effective annualized interest rate cost

Compute an effective annualized interest rate cost (all-in cost) for the USD tranche of the Eurobond. What information would you need to obtain the dollar all-in cost of the yen tranche? What elements would you take into account to choose between the..

  Approximate after-tax cost of debt for new issue of bonds

The corporate tax rate is 30%. What would be the approximate after-tax cost of debt for a new issue of bonds.

  What was the principal after the first payment

Joe Jay purchased a new home with a $260,000 loan. He decided to use Loyal Bank for his mortgage and the bank required him to put down 20%. The monthly payment for the 6.50% 25- year mortgage is $1,404.43. What was the principal after the first payme..

  What is the present value of this set of cash flows

what is the present value of this set of cash flows?

  How much will you have to deposit each year

If you can earn 8 percent on this account, how much will you have to deposit each year over the next five years to fund the future liability?

  Experiencing rapid growth

Mediatek Inc. is experiencing rapid growth. What will you pay for this share today?

  Would reinvest the funds by buying us treasury securities

Would the Fed be more likely to take this action if it saw future U.S. economic growth as being strong or as being weak? Briefly explain.

  Calculate the free cash flow

Ford Motor Company, Inc. Determine Ford’s consolidated free cash flow. Make a prediction as to what the company’s stock price would be in three (3) months. Review analysts’ estimates and predictions for the past year. 1. Calculate the free cash flow

  The level of net working capital is expected

For project A, the cash flow effect from the change in net working capital is expected to be -100 dollars at time 2, the level of net working capital is expected to be 1,000 dollars at time 0, and the level of net working capital is expected to be 1,..

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