What is the bonds yield to maturity

Assignment Help Financial Management

Reference no: EM131305505

Consider the case of a two-year discount bond-that is, a bond that pays no coupon and pays its face value after two years rather than one year. Suppose the face value of the bond is $1,000, and the price is $870. What is the bond's yield to maturity?

(In this case, provide a numerical answer rather than just writing the appropriate equation.)

Reference no: EM131305505

Questions Cloud

Should you subscribe for one year or for two years : Suppose that you are considering subscribing to Economist Analyst Today magazine.- If the interest rate is 10%, should you subscribe for one year or for two years?

Prepare a formal report brief projects : As you know, we have recently experienced stagnant growth. In preparation for my upcoming meeting with the Board of Directors, I am asking you to prepare a formal report that will brief me on the two most recent projects proposed by our operations..

Discuss about the american civil war : Ulysses S. Grant was a successful military general and the eighteenth President of the United States. A graduate of the prestigious West Point military academy, Grant served in both the Mexican-American War (1846-1848) and the American Civil War (..

What is meant by macro-economic indicators : Case Study - Fall 2016 - Explain what is meant by macro-economic indicators and provide a detailed discussion on any four macro-economic indicators selected from the case study and

What is the bonds yield to maturity : Consider the case of a two-year discount bond-that is,- Suppose the face value of the bond is $1,000, and the price is $870.- What is the bond's yield to maturity?

How did you feel while doing this assignment : How did you feel while doing this assignment? What did surprise you? What did you find unbelievable and why?How did this assignment help you achieve the educational goals of our university ? Identify 5 quotations from the readings that you found sign..

Write the equation needed to calculate the yield to maturity : For each of the given situations, write the equation needed to calculate the yield to maturity. You do not have to solve the equations for i; just write the appropriate equations.

Compute the cubic splines that pass through points : Compute the cubic splines that pass through the three given points. Evaluate the viscosity at 25°C. The measured value has been reported to be 0.8904 cp.

Relationship between price of bond and yield to maturity : Write down an equation showing the relationship between the price of the bond, the coupon (in dollars), and the yield to maturity.

User Account

All Pages