What is the bonds nominal coupon interest rate

Assignment Help Financial Management
Reference no: EM13811499

O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal yield to maturity is 9.25%, they pay interest semi annually, and they sell at a price of $975. What is the bond's nominal coupon interest rate?

a. 8.99%              

b. 7.71%              

c. 8.12%

d. 8.54%              

e. 7.32%

Reference no: EM13811499

Questions Cloud

Construct a magic square using a genetic algorithm : Construct a magic square using a genetic algorithm. First, generate an initial population of magic squares with random values. The fitness of each individual square is calculated based on the "flatness", that is, the degree of deviation in the sum..
The largest percentage increase in price : Assume that all interest rates in the economy decline from 10% to 9%. Which of the following bonds would have the largest percentage increase in price?
Assume that the risk-free rate is a constant : If the market risk premium increases by 1%, then the required return will increase for stocks that have a beta greater than 1.0, but it will decrease for stocks that have a beta less than 1.0. The effect of a change in the market risk premium depends..
How is channel coding done : Select a particular standard of interest to research. The 802.x ones tend to be documented the best. Complete the following for your individual project: How is channel coding done
What is the bonds nominal coupon interest rate : O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal yield to maturity is 9.25%, they pay interest semi annually, and they sell at a price of $975. What is the bond's nominal coupon interest rate?
Evaluate the cost of the franchise versus its business poten : Business Principles Managing Financial Resources: Financial Management Go online and check the capitalization required to open a franchise of your choice, like Subway or McDonald's. Does the franchiser offer financial assistance to prospective franch..
About a conflict that is currently happening : about a conflict that is currently happening
Performance of a wimax network : The performance of a WiMax network appears to be lower than expected and you suspect interference to be the cause. Write a 2 page letter to the FCC that requesting an investigation. The letter should include explanations of the following: Test res..

Reviews

Write a Review

Financial Management Questions & Answers

  Semi-annual coupon bond with coupon rate

Suppose that you buy a semi-annual coupon bond with coupon rate of 10%; the market price of $1,120, and the time to maturity of 17 years. Seven years from now, the YTM on your bond is expected to decline by 2%, and you plan to sell. What is the holdi..

  You are considering the following two stocks for your

you are considering the following two stocks for your portfolio and have observed the following.the risk free rate is

  Correlation coefficient between returns of the two stocks

The covariance of the returns between Willow Stock and Sky Diamond Stock is 0.0990. The variance is 0.2540, and the variance of Sky Diamond is 0.1370. What is the correlation coefficient between the returns of the two stocks?

  C-v-p analysis of the current years financials

Conduct a What-If Analysis: This what-if analysis concerns an unforeseen circumstance that could impact the company''s current health as well as its future plans.

  What was andreas return on the stock

Andrea purchased 200 shares of stock for $45 per share. During the year, she received dividend checks amounting to $180. Andrea recently sold the stock for $54 per share. What was Andrea's return on the stock? Andrea is in a 25 percent tax bracket. W..

  Internal rate of return and net present value

Internal Rate of Return and Net Present Value

  Constant growth rate in its dividends

Suppose you know that a company’s stock currently sells for $66.80 per share and the required return on the stock is 10 percent. You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield. If it’..

  Te six month gold futures price is currently 1598 the

the six month gold futures price is currently 1598. the riskofree interest rate is 4.50nbsp per annum with

  Q1 circle the right statementa in the statement of cash

q1. circle the right statementa. in the statement of cash flows a reduce in inventories is reported as a use of cash.

  The control environment reflects the companys attitude

The control environment reflects the company's attitude, awareness, and actions of management and the board concerning the importance of control and how it is used. What aspect of the control environment is affected by the company’s decision to hire ..

  Which alternative is better deal

Suppose you are going to buy a car. The cost of car is $24,000. You have $10,000 for down payment. You can borrow the balance of $14,000 from dealership’s finance company at 3% APR, with monthly payment for 36 months or you can borrow from a bank wit..

  Duration gap to take advantage of this anticipated rise

If a bank manager was quite certain that interest rates were going to rise within the next 6 months, how should the bank manager adjust the banks duration gap to take advantage of this anticipated rise? What would the manager do if rates were expecte..

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