What is the current yield for the first year on this bond

Assignment Help Financial Management

Reference no: EM131304867

A Microsoft, Incorporated bond has a coupon rate of 8.5%, matures in 12 years, and sells for $835.60 (assume coupons are paid on a semi-annual basis).

a) What is the YTM for this Microsoft, Inc. Corporate Bond?

b) What is the current yield for the first year on this bond?

c) What is the expected percentage capital gain or loss for the first year on this bond?

Reference no: EM131304867

Questions Cloud

About the economic order quantity model : ABC Company sells 2,234 chairs a year at an average price per chair of $199. The carrying cost per unit is $24.78. The company orders 368 chairs at a time and has a fixed order cost of $131 per order. The chairs are sold out before they are restocked..

Provide your own model of institutional change : Provide your own model of institutional change, which includes antecedents to and processes of institutional change. Explain major tenet of this conception of firm and discuss its implications for organizational ambidexterity or for organizational ..

What must the beta of this stock be : A stock has an expected return of 14.2 percent, the risk-free rate is 3.1 percent, and the market risk premium is 8.8 percent. What must the beta of this stock be?

Identify and define the experimental and control groups : Choose a research study article of interest to you. Refer to the study you choose and complete the "Assessing a Research Study" resource. Identify an article that directly references your chosen study and compare it to your findings. Does this arti..

What is the current yield for the first year on this bond : A Microsoft, Incorporated bond has a coupon rate of 8.5%, matures in 12 years, and sells for $835.60. What is the YTM for this Microsoft, Inc. Corporate Bond? What is the current yield for the first year on this bond? What is the expected percentage ..

Explain why the bond is selling for premium or discount : Assume you are considering adding a bond to a client's investment portfolio Please recommend a specific bond in your post and explain why the bond is selling for a premium or discount. List one possible reason why the required return on a bond may di..

Compare the telephone network and the internet : When a party makes a local telephone call to another party, is this a point-to point or multipoint connection? Explain the answer.

How do health providers design educational programs : How do health providers design educational programs to clearly articulate objectives to engage both patients as well as families?

Which layers in the tcp/ip protocol suite need to be changed : Assume that an application-layer protocol is written to use the services of UDP. Can the application-layer protocol uses the services of TCP without change?

User Account

All Pages