What is the capital gains yield on bonds

Assignment Help Finance Basics
Reference no: EM132499558

A 10-year, $1,000 par value bond has a 6.25% coupon rate with interest paid semiannually. The bond currently sells for $825. What is the capital gains yield on these bonds? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.

Reference no: EM132499558

Questions Cloud

How much income must don report for the tax year : In the current year, How much income must Don report for the tax year, and what is his basis in his partnership interest at the end of the year?
Calculating costs of issuing stock tristate corp : Calculating Costs of Issuing Stock TriState Corp. recently went public with an initial public offering in which they received a total of $50.30
What expect the expected return to gold to be : Gold prices increase as investors move money from stocks to gold. If CAPM is true, we would therefore expect the expected return to gold to be
What is the bond nominal coupon interest rate : O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 20 years. Their nominal yield to maturity is 8.25%, they pay interest semiannually
What is the capital gains yield on bonds : What is the capital gains yield on these bonds? Enter your answer rounded to two decimal places. Do not enter % in the answer box.
Respond the statement about mayo clinic : What is the difference and Somewhere the Bible says that Jesus is the only way to the Father - Which website did you choose to evaluate for your essay
What types of estate planning activities : What types of estate planning activities and decisions that might be considered by the Brocks at this time? With two children in college, the Brocks
Is main asset the sum of all the assets : Is main asset the sum of all the assets? or main asset is Net assets (which is total assets - total liabilities)? Also, does it include non current assets
Bond intrinsic value-big manufacturer corporation : Big Manufacturer Corporation's bonds have a 10-year maturity, a 5.25% coupon rate with interest paid semiannually

Reviews

Write a Review

Finance Basics Questions & Answers

  Should the company introduce the proposal

The Imperial Socket Company has a subsidiary in Brazil. At present, the subsidiary offers its customers terms of 2 / 10, net 60.

  Determine the roe if the project is financed

Myrtle Propane is considering a project that will require $700,000 in assets. Determine the ROE if the project is financed with 100% equity.

  Calculate the expected rate of return for exxon

If the beta of Exxon Mobil is 0.65, risk-free rate is 4% and the market rate of return is 14%, calculate the expected rate of return for Exxon.

  What is the economic order quantity

The sofas are sold out before they are restocked. What is the economic order quantity?

  Educational institutions or nonprofit organizations

Why do you think the economists quoted in the story chose to focus on the investments of hospitals instead of educational institutions

  Compute the state prices

In exercise, compute the state prices and , and use these prices to calculate the value today of a one-year put option on the stock with exercise.

  Determine expected net present value of building the plant

If the plant could be sold for $105 million to another automaker in one year if the auto line is not successful, what is the expected net present value of build

  Discuss the two facts of globalisation

Discuss the two facts of Globalisation, and how this has changed the relationship between business and society in the last few decades

  Managerial applications of information technology

What is IT infrastructure, and what are the stages and drivers of IT infrastructure evolution? Define IT infrastructure from both a technology and a services.

  Why is capital budgeting such an important process?

Why is capital budgeting such an important process? Why are capital budgeting errors so costly?

  What is the rate of return on the incremental investment

You considering two types of automobiles. Model A costs $18,000 and has a salvage value of $9,000 after 4 years. Model B costs $16,000 and has a salvage value.

  Find the miller-orr optimal upper cash limit

Find the Miller-Orr optimal upper cash limit for your firm if $88,343 is needed each week to pay bills, the lower cash limit is $25,000

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