What is the value of the bonds to you given the yield

Reference no: EM133369167

Assignment:

1. Abner?Corporation's bonds mature in 23 years and pay 9 percent interest annually. If you purchase the bonds for $?1,150, what is your yield to?maturity? Round to two decimal? places.)
2. The 10?-year ?$1,000 par bonds of Vail Inc. pay 13 percent interest. The? market's required yield to maturity on a? comparable-risk bond is 9 percent. The current market price for the bond is $1,140.
2A. Determine the yield to maturity.

2B. What is the value of the bonds to you given the yield to maturity on a? comparable-risk bond?

2C. Should you purchase the bond at the current market? price?

3.The Saleemi? Corporation's ?$1,000 bonds pay 12 percent interest annually and have 13 years until maturity. You can purchase the bond for ?$1,135.

3A. What is the yield to maturity on this? bond?

3B. Should you purchase the bond if the yield to maturity on a? comparable-risk bond is 9 ?percent?

4. The 14?-year, ?$1,000 par value bonds of Waco Industries pay 11 percent interest annually. The market price of the bond is ?$?1,155 and the? market's required yield to maturity on a? comparable-risk bond is 8 percent.

4A. Compute the?bond's yield to maturity.

4B. Determine the value of the bond to you given the? market's required yield to maturity on a? comparable-risk bond.

4C. should you purchase the ?bond?

5. What would you expect the nominal rate of interest to be if the real rate is 3.7 percent and the expected inflation rate is 7.4 ?percent?

Reference no: EM133369167

Questions Cloud

Calculate theannual payment of annuity b : Annuity A and B has the same present value. Suppose the required rate of return is 7.5% per year. Annuity A pays $5,000 at the first day of every year

How would you describe your investing personality : When you shop, do you buy things on sale or do you buy them at a high markup? Do you buy coveted items at high prices or do you wait for sales?

Implement a method that takes as input a list of unsigned : implement a method that takes as input a list of unsigned integers (uint) and returns the number of district integers in that list. Do not alter the list

Third-party app deployments using the comptia : Writing work instructions for third-party app deployments using the CompTIA A+ objectives to guide you. In the section on system requirements for applications

What is the value of the bonds to you given the yield : What is the value of the bonds to you given the yield to maturity on a? comparable-risk bond? Should you purchase the bond at the current market? price?

Why might you suggest licenses for an edition of windows : Why might you suggest licenses for an edition of Windows 10 that supports corporate needs for the new computers and has upgrades for the old computers

What is the irr of the project : Woatich Windmill Company is considering a project that calls for an initial cash outlay of $70,000. The expected net cash inflows from the project are $13,000

Powershell script file that prints hello world : You are going to a PowerShell script file that prints "Hello world". It is recommended that you watch all the lecture in the Module 6 and read the chapters

What is the value of seagate stock : Assume that the historical annual rate of Seagate dividends is an accurate estimate of the future consistent annual dividend growth rate. Use a 22% required

User Account

All Pages