What is the? bond''s current? yield

Assignment Help Finance Basics
Reference no: EM133002658

An investor is considering purchasing a bond with a 5.79 percent coupon interest? rate, a par value of ?$1,000?, and a market price of ?$916.24. The bond will mature in nine years. Based on this? information, answer the following?questions:
a. What is the? bond's current? yield?
b. What is the? bond's approximate yield to? maturity?
c. What is the? bond's yield to maturity using a financial? calculator?

Reference no: EM133002658

Questions Cloud

Determine the amount of under- or overapplied fixed overhead : Fixed selling and administrative expenses P164,000. Determine the amount of under- or overapplied fixed overhead using absorption costing
What would be future value for morrit corporation : If this were an annuity due, what would its future value be? The Morrit Corporation has $900,000 of debt outstanding, and pays an interest rate of 8% annually.
Determine the equivalent taxable yield : Three? friends, Jodie,? Natalie, and? Neil, have asked you to determine the equivalent taxable yield on a municipal bond. The? bond's current yield is 4.42 perc
Prepare the trial balance : The following account balances were extracted from its books of accounts for the year ended 31 December 2020: Prepare the Trial Balance
What is the? bond''s current? yield : An investor is considering purchasing a bond with a 5.79 percent coupon interest? rate, a par value of ?$1,000?, and a market price of ?$916.24.
What is the wacc : A firm has 10,000,000 shares of common stock outstanding, each with a market price of $15.00 per share. It has 80,000 bonds outstanding, each selling for $1020.
Compute what will firm quick ratio after nelson has raised : How much can Nelson's short-term debt increase. What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds?
Client on the best financial decisions : You are a financial advisor. One of your clients is a 20-year old with $75,000 in savings and they work part-time making $25,000 a year. Your client wants to go
Describe the basic features of the balanced score card : Question - Answer the following questions relating to the Balanced Scorecard: Describe the basic features of the Balanced Score Card

Reviews

Write a Review

Finance Basics Questions & Answers

  What are the basic types of financial ratios

What are the basic types of financial ratios and how can they be used during the life cycle of a business? For small business firms, who are the likely users of these ratios and what are their concerns or interests?

  Explain how the premium and discount are determined when

explain how the premium and discount are determined when assets are priced-to-market. when would the law of one price

  Which rate of return does the investor expect to receive

The company pays %5.79 annual dividends on this preferred stock. Which rate of return does the investor expect to receive on this stock if the stock is purchased today?

  United technologies reveals plan to split into three

Read the Below article titled "United Technologies reveals plan to split into three" provided with the exam paper and answer the related questions below:

  What is the present value of the second option

You can have $8,500 per month for the next three years, or you can have $7,200 per month for the next three years, along with a $38,500 signing bonus today. Assume the interest rate is 8 percent compounded monthly.

  Constant compound annual rate

What would the value of Brooks's stock be if the previous dividend was D0 = $3 and if investors expect dividends to grow at a constant compound annual rate of (1) - 6%, (2) 0%, (3) 2%, or (4) 14%? Round your answers to the nearest cent.

  Report of the pertinent information

Messineo LLC borrowed $15,000 at a 14% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal annual end of year payments. As the CFO of Messineo, LLC you must prepare a report of the pertinent information in a s..

  The kings want to decide how much additional insurance

Dave and Karen King are a two-income couple in their early thirties. They have two children, ages 6 and 3. Dave's monthly take-home pay is $3,600, and Karen's is $4,200. The Kings want to decide how much additional insurance they would need, i..

  What is the approximate effective cost of missing the cash

What is the approximate effective cost of missing the cash discounts from each supplier? If you could not take advantage of either cash discount offer, which supplier would you select?

  Machinery-net of depreciation

Assuming the auditor determines that the machinery were properly retired, what other information does the auditor need to know to have reasonable assurance that the machinery-net of depreciation-is properly reflected on the balance sheet?

  Finding present value and annual payments

Calculate the present value of $90,000 to be received 14 years from now if the decision makers opportunity cost 10 percent. Find out the present value at 9 percent of each of following five cash inflow streams. Suppose that cash inflows take place ..

  What are the consequences of extreme liquidity risk

What are the consequences of extreme liquidity risk? In your view after studying this chapter, what are the key measures of reducing the extreme liquidity risk

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