What is the current yield on the following bond

Assignment Help Finance Basics

Reference no: EM13300583

What is the "current yield" on the following bond?

Par value $1000

Coupon rate 8%

Years to maturity 12

Market interest rate 7%

Market price $1080

a. 80/1000 = 8.7%

b. 70/1080 = 6.5%

c. 70/1000 = 7.6%

d. 80/1080 = 7.4%

e. (8 * 7)/1000 = 5.6%

Reference no: EM13300583

Questions Cloud

What ventilation rate is needed to maintain formaldehyde : Indoor air quality is an under appreciated health hazardous. The air quality in a building can be modeled as a CSTR. Suppose that the carpet in a new office building releases formaldehyde at a rate of 10 micrograms per hour.

What happens to the present value factor as discount rate : What happens to the present value factor as our discount rate or interest rate increases for a given time period?

Define what is the ph of the solution after of naoh : A 20.0-mL sample of 0.25 M HNO3 is titrated with 0.15 M Na OH. What is the pH of the solution after 30.0 mL of NaOH have been added to the acid

Calculate the angular acceleration of the pulley : A string is wrapped around a pulley of radius 3.60cm , and a weight hangs from the other end. calculate the angular acceleration of the pulley

What is the current yield on the following bond : What is the "current yield" on the following bond?

Evalaute the missing value in each problem : Calculate the missing value in each problem. a. delta G=?; delta H=-217 kJ/mol; delta S=151 J/mol*K; T=451 K b. delta G= -20.4 kJ/mol; delta H= 107 kJ/mol; delta S= 211 J/mol*K; T

Compute the free cash flow for your company : Compute the return on assets, profit margin and asset utilization rate for your company and its competitor and assess your company's competitive financial position - Compute the free cash flow for your company and its competitor.

Define the ph of the solution be after the addition : You have 500.0 mL of a buffer solution containing 0.30 M acetic acid (CH3COOH) and 0.20 M sodium acetate (CH3COONa). What will the pH of this solution be after the addition of 20.0 mL of 1.00 M NaOH solution

How much will his insurance pay for their claims : Three people in that car sustained bodily injuries; the driver's injuries were worth $20,000; a passenger received injuries worth $12,500; and another passenger received injuries of $17,000. How much will his insurance pay for their claims?

User Account

All Pages