What is the implied treasury bond rate

Assignment Help Finance Basics
Reference no: EM13305435

Looking at The Wall Street Journal you observe that the settlement price on a hypothetical 15-year, semiannual payment, 6% coupon bond is 81-21. If the bond has a $1,000 par value, what is the implied Treasury bond rate?

a)8.14%
b)8.79%
c)7.00%
d)8.38%
e)6.19%

 

Reference no: EM13305435

Questions Cloud

By how much should the merger increase its share price : If Micro has 10 million shares outstanding, by how much should the merger increase its share price, assuming all of the synergy will go to its stockholders?
Determine the maximum kinetic energy of the rod : A thin uniform rod (mass = 1.75 kg) swings about an axis that passes through one end of the rod, What is the maximum kinetic energy of the rod
Determine the average normal stress developed in each post : If all the posts have the same original lenth before they are loaded, determine the average normal stress developed in each post when post C is heated so that its temperature is increased by 20 degrees F.
A full description of the new system : -A full description of the new system, a description of its components, and the benefit it will provide to Riordan
What is the implied treasury bond rate : Looking at The Wall Street Journal you observe that the settlement price on a hypothetical 15-year, semiannual payment, 6% coupon bond is 81-21. If the bond has a $1,000 par value, what is the implied Treasury bond rate?
Determine the maximum power output of the pelton wheel : The Pelton wheel is 3.0 m in diameter, and the nozzle exit is 0.2 m in diameter. Determine the maximum power output of the Pelton wheel. Is a Pelton wheel the appropriate turbine type for this application
Database management systems : Rubric for PowerPoint Presentation Points
What does the word fetus mean : At what event did you begin to exist - what is the difference between a fetus and an embryo
Determine the level of service for the segment : Determine: a. the Level of Service for this segment; b. the loss in Level of Service, if due to construction the lane width is reduced to 10 feet and there are concrete barriers one foot away from either end of the pavement.

Reviews

Write a Review

Finance Basics Questions & Answers

  Explaining parent-subsidiary relationship between companies

Parent-Subsidiary relationship between companies develops when one company owns greater than 50% of another company voting stock.

  Find the estimated total costs for a production level

Total costs were $72,200 when 25,000 units were produced and $97,500 when 35,000 units were produced. Use the high-low method to find the estimated total costs for a production level of 32,000 units.

  What is the initial value of the swap

B) Create a chart showing the timing and amount of all cash flows. c) What is the initial value of the swap?

  At what unit output level would the two methods provide

The sales price per deck would be the same under each method. At what unit output level would the two methods provide the same operating income (EBIT)?

  Theory about cost of debt as well as tax shield in us

Theory about cost of debt as well as tax shield in US and conclusions can you reach analyzing corporate debt capacity

  What is the estimated value of the stock

A stock has the required rate of return at 16%. The most recent dividend paid D0 = $2.00 and the expected dividend growth rate g = 10%. What's the first dividend expected to pay at the end of this year?

  Objective questions on shareholders'' interest and roa

Objective questions on shareholders' interest and ROA and ROI

  What are the expected return and standard deviation

What are the expected return and standard deviation of a portfolio with half of its funds invested in each of these securities?

  Find a potential capital project

Find a potential capital project for your company describe such a project and write a short summary of the problems you see in getting the funding to see it through.

  Calculate coefficient variation and select best investment

Based on the following information, calculate the coefficient of variation and select the best investment based on the risk/reward relationship.

  Explain after tax cost of debt and preference stock

Explain After tax Cost of debt and preference stock and analysis calculate and explain the after-tax cost of preferred stock for a company

  What is your total dollar return on this investment

Four months ago, you purchased 1,300 shares of Lakeside Bank stock for $23.32 a share. You have received dividend payments equal to $.66 a share. Today, you sold all of your shares for $24.32 a share. What is your total dollar return on this inves..

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