What is the bond yield to maturity

Assignment Help Financial Management
Reference no: EM132005865

Suppose a ten-year, $ 1000 bond with an 8.5 % coupon rate and semiannual coupons is trading for $ 1035.41.

a. What is the bond's yield to maturity? (expressed as an APR with semiannual compounding)?

b. If the bond's yield to maturity changes to 9.1 % APR, what will be the bond's price?

Reference no: EM132005865

Questions Cloud

What was the price of this bond when it was issued : The yield to maturity on this bond when it was issued was 5.9 %. What was the price of this bond when it was issued?
How duration impacts the sensitivity of bond : Why occurrence change in bond price as a function of change in yield to maturity and discuss how duration impacts the sensitivity of a bond.
Why is the feature concern-what does mean for investors : why is the feature a concern? what does this mean for investors? can investors avoid this feature, why or why not?
What is the maturity of the bond and coupon rate : What is the maturity of the bond? (in years)? What is the coupon rate? (as a? percentage)?
What is the bond yield to maturity : What is the bond's yield to maturity? (expressed as an APR with semiannual compounding)?
What is this bond time to maturity : A bond issued by Ford on May 15, 1997 is scheduled to mature on May 15, 2097. If today is November 16, 2002, what is this bond’s time to maturity?
What coupon rate do you need to set : If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to set?
What is the yield to call of the bond : The call premium is one year of coupon payments. It is offered for sale at $1,116.75. What is the yield to call of the bond?
What will be the change in the bond price in dollars : The new appropriate discount rate will be 7.6 percent. What will be the change in the bond’s price in dollars?

Reviews

Write a Review

Financial Management Questions & Answers

  What makes a good project manager

Have you ever worked with a project manager that you thought was particularly talented or capable? What skill made them so talented or capable?

  Determine the overall profit from the transaction

Construct a hedge and evaluate how your investment will do if in six months the stock is at SF926.50, the spot exchange rate is $0.7301, and the futures price is $0.7295.

  How many regular annual payments

How many regular annual payments of 7,800 dollars must Allysha make?

  What is the effective cost of borrowing

Your firm has an average collection period of 22 days. Current practice is to factor all receivables immediately at a discount of 1.2 percent. What is the effective cost of borrowing in this case? (Do not round intermediate calculations. Enter your a..

  Classify these stocks according to market capitalization

Classify these stocks according to their market capitalization. Which of the three would you classify as a growth? stock? Why?

  What is capital gain in stock price from year zero to one

Calculate the expected rate of return. What is the capital gain in stock price from year 0 to year 1?

  Improve production and decides to deploy training program

ABC Company needs to improve production and decides to deploy a training program.

  Rise in national production and income per capita

Does a rise in national production and income per capita tend to worsen or improve air pollution, water pollution, and sanitation?- Explain.

  Marketing commitments to facilitate a successful business

The discussed the needed marketing commitments to facilitate a successful business. What are the benefits to the consumer? Who is your target market?

  About the source of cash

Which of the following is a source of cash?

  What is common-size statement value of inventory

What is the common-size statement value of inventory?

  How have western unions compliance costs changed

How have Western Union's compliance costs changed over the past 10 years? What are the key drivers of this change?

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