What is the expected yield to maturity for this bond

Assignment Help Finance Basics

Reference no: EM13263650

A bond can be purchased for $985 today. This bond pays $72 in interest each year in annual year end payments. The bond has a par or maturity value of $1,000 and has 9 years to maturity. What is the expected yield to maturity for this bond?

Reference no: EM13263650

Questions Cloud

What is the treynor measure of the portfolio : A portfolio P generates an annual return of 16%, a beta of .8, and a standard deviation of 25%. The market index return is 15% and has a standard deviation of 21%. T-bill rate is 3%.

Derive the market demand for loanable funds : The current market rate of interest is 8 percent. At that rate of interest, businesses borrow $500 billion per year for investment and consumers borrow $100 billion per year to finance purchases. The government is currently borrowing $100 billion ..

What are the various models of retail competition : Describe the text's retail strategic planning and operations management model.

What is the value of this bond today : A different bond pays 6.5% annual interest once per year, has 9 years to maturity, and a $1,000 par or maturity value. Given the risk level of this bond the market demands a 8.2% interest rate. What is the value of this bond today?

What is the expected yield to maturity for this bond : A bond can be purchased for $985 today. This bond pays $72 in interest each year in annual year end payments. The bond has a par or maturity value of $1,000 and has 9 years to maturity. What is the expected yield to maturity for this bond?

What is the value of the timing option today : This is a risky project, so a WACC of 16.0% is to be used. If NPC chooses to wait a year before proceeding, what is the value of the timing option today?

Find the height of the target above sea level : A submarine is 2.95 multiply.gif 102 m horizontally from shore and 1.00 multiply.gif 102 m beneath the surface of the water. Find the height of the target above sea level

How much do you need to invest at the end of each year : How much do you need to invest at the end of each year (while working) to allow this to happen?

How much do you need to invest today : How much do you need to invest today (once) to have $89,000 at the end of 19 years if you can earn 3.5% annually?

User Account

All Pages