What is the current yield on the bonds

Assignment Help Financial Management

Reference no: EM131327833

Assume M Corp bonds have a par value of $1000, a 2.5% coupon, paid 2X per year. These bonds mature in 2 years. Assume a 365 day year.

a) Assume 72 days have passed since the last coupon payment on the M Corp bonds. The bonds are trading at $955. What is the current yield on the bonds?

b) Assume 72 days have passed since the last coupon payment on the M Corp bonds. The bonds are trading at $955. What is the invoice price of the bonds?

Reference no: EM131327833

Questions Cloud

What are the particular beliefs about human nature : Based on your readings, what are the particular beliefs about human nature that differentiate the ethical theories of Thomas Hobbes, David Hume, and Immanuel Kant? How might you illustrate each perspective

What rate of return did you earn over two years : What would you pay for an asset that had cash flows of $2,000 at the end of year, $2,5000 at the end of year 2 and $3,000 at the end of the year three if the appropriate discount rate is 5% each year? How much money would you have if you banked your ..

What is the beta of a security with an expected return : What is the beta of a security with an expected return of 12% if Treasury bills yield 6% and the market risk premium is 8%? Security XYZ has a beta of 1.1. The expected market rate of return is stable at 8% and the risk-free rate is 4%. If the realiz..

Company pledges to increase its dividend : Caan Corporation will pay a $2.54 per share dividend next year. The company pledges to increase its dividend by 3.5 percent per year indefinitely. If you require a return of 11 percent on your investment, how much will you pay for the company’s stock..

What is the current yield on the bonds : Assume M Corp bonds have a par value of $1000, a 2.5% coupon, paid 2X per year. These bonds mature in 2 years. Assume a 365 day year. Assume 72 days have passed since the last coupon payment on the M Corp bonds. The bonds are trading at $955. What is..

Identify and analyze aaliyah risk and protective factors : Analyze the case study and review your readings. Respond to the following: Identify and analyze Aaliyah's risk and protective factors for drug use. Describe at least two factors for each. Discuss at least one thing not mentioned in the case study tha..

What about triple in value : Assume that the returns from an asset are normally distributed. The average annual return for this asset over a specific period was 17.5 percent and the standard deviation of those returns in this period was 43.89 percent. What about triple in value?

How would you define what organizational decision making is : TMGT 590 : In your own words, how would you define what organizational decision making is?What are the models of organizational decision making? Which one do you prefer and why? Explain what is meant by the term "levels of organizational learning?

About the economic order quantity : Fashion Clothier's economic order quantity (EOQ) for dyes is 14,000 units. If the total demand is 196,000 units per period, carrying cost per unit is 25% of inventory value, purchase price is $10, and fixed costs per order is $30, then the total inve..

User Account

All Pages