What is the coupon rate and current yield

Assignment Help Accounting Basics
Reference no: EM133059190

Question - A 30 year Treasury Bond is issues with par value of $1,000, paying interest of $80 per year. If market yields increase shortly after the T bond is issues, what happens to the bond's:

-Coupon rate

-Price

-Yield to maturity

-Current yield

-A bond with a par value of $1,000 has a current yield of 7.5% and a coupon rate of 8%. What is the bond's price?

-One bond has a coupon rate of 8%, another a coupon rate of 12%. Both bonds have 10 year maturities and sell at a yield to maturity at 10%. If the yield to maturity next year are still 10%, what is the rate of return on each bond? Does the higher coupon bond give a higher rate of return?

-A 6 year Circular File Bond pays interest of $80 annually and sells for $950. What is the coupon rate, current yield, and yield to maturity?

-A General Motors Bond carries a coupon rate of 8%, has 9 years until maturity, and sells at a yield to maturity of 9%.

-What interest payments do bond holders receive each year?

-At what price does the bond sell (Assume annual interest payments)

-What happens to the bond price if the yield to maturity falls to 7%?

Reference no: EM133059190

Questions Cloud

Compare and contrast the classical theory : Compare and contrast the Classical Theory of categories/concepts with the more recent Prototype Theory - discuss the notion of ‘indirect speech acts'
To what extent do languages fall neatly into such a system : All languages may add affixes to free-standing, pronounceable roots to build new words. Discuss this claim using examples from different languages
What would be the net investment required : Winneconne Company is considering replacing a machine with a book value of P400,000, a remaining useful life of 5 years, What would be net investment required
What is the effective annual rate : You plan to invest $2,000 in an individual retirement arrangement (IRA) today. What is the effective annual rate (EAR)
What is the coupon rate and current yield : A 6 year Circular File Bond pays interest of $80 annually and sells for $950. What is the coupon rate, current yield, and yield to maturity
Determine the break-even point in sales units : The variable cost is $52 per unit, while fixed costs are $149,916. Determine (a) the break-even point in sales units
Record amortization of the right-of-use asset for Taco King : During the previous 5-year period, Taco King has generated quarterly sales of over $655,000. Record amortization of the right-of-use asset for Taco King
Determine the company net income : Also assume the company incurred a loss on the sale of equipment of $4,000. Determine the company net income
What is the expected net profit : Cumulative XYZ has sales of $4,800,000. COGS is 40%, operating expenses (excluding depreciation) are 35%, What is the expected net profit

Reviews

Write a Review

Accounting Basics Questions & Answers

  Pappy corporation received cash of 13500 on september 1

pappy corporation received cash of 13500 on september 1 2010 for one years rent in advance and recorded the transaction

  May the court fix the duration of the period

The cow and pig were lost due to his fault. Before X delivers the horse, it was lost because of fortuitous event. Is the obligation extinguished? Reason.

  What is its level of inventory

Soaring Eagles Corp. has total current assets of $11,884,000, current liabilities of $5,374,000 and a quick ratio of 0.86. What is its level of inventory

  Prepare a production budget for november

Prepare a production budget for November - Prepare a supporting schedule to determine required material for production and a direct materials purchase budget for November

  Prepare the journal entries in relation to the equipment

Abbey Ltd purchased machinery on 1 October 2010 for $80,000. Prepare the journal entries in relation to the equipment from the date of acquisition

  Amount of depreciation expense for first year

On January 1, Top Flight Company purchased a $68,000 machine. The estimated life of the machine was five years, and the estimated salvage value was $5,000. Compute the amount of depreciation expense for the first year, using each of the following m..

  The internal revenue service provides considerable

The Internal Revenue Service provides considerable information over the Internet.

  What are the fixed operating cost per month

The following cost and reservation information was provided by travel destination, a traval agency. What are the fixed operating cost per month

  What in your opinion is the company outlook for the future

What in your opinion is the company's outlook for the future? Would you buy the company's stock as an investment? Why or why not

  What could you do to ascertain the propriety

You are an accounts payable clerk for a small home improvements contractor. Speculate on the type of fraud that could be in process here. What (if anything) could you do to ascertain the propriety of the transaction and still make the payment toda..

  Calculate the minimum federal tax payable for john

Calculate the minimum 2016 federal tax payable for John. Indicate any carry forwards available to him and his dependants and the carry forward provided

  Determine the substantiality of the partnership allocation

Determine the substantiality of the partnership allocation agreement under partnership is formed for wildcat oil drilling of a particular piece of property.

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