What is the yield to call

Assignment Help Financial Management

Reference no: EM131448349

New Homes has a bond issue with a coupon rate of 5.5 percent that matures in 12.5 years and is callable in 8.5 years. The bonds have a par value of $1,000 and a market price of $972. Interest is paid semiannually. What is the yield to call?

Reference no: EM131448349

Questions Cloud

Annual percentage increase in the winner check over period : In 1893, the first Green Jacket Golf Championship was held. The winner’s prize money was $230. In 2015, the winner’s check was $1,570,000. What was the annual percentage increase in the winner’s check over this period? If the winner’s prize increases..

What is the value of your monthly payment in today dollars : You wish to convert your 2 million to a lifetime annuity which will provide you with a monthly payment for the rest of your life. You wish this payment to being one month after you fund your annuity. Annuity products are paying interest at 3% per yea..

What is your estimate of the stocks current price : A company currently pays a dividend of $3.75 per share (D0 = $3.75). It is estimated that the company's dividend will grow at a rate of 24% per year for the next 2 years, then at a constant rate of 8% thereafter. The company's stock has a beta of 0.8..

What is your annualized holding period return : You purchased 300 shares of General Electric stock at a price of $63.40 four years ago. You sold all stocks today for $70.56. During that period the stock paid dividends of $3.60 per share. What is your annualized holding period return (annual percen..

What is the yield to call : New Homes has a bond issue with a coupon rate of 5.5 percent that matures in 12.5 years and is callable in 8.5 years. The bonds have a par value of $1,000 and a market price of $972. Interest is paid semiannually. What is the yield to call?

Direct financing between surplus and deficit units : How does financial intermediation often provide a better alternative to direct financing between surplus and deficit units? Explain how the Fed lowers and raises the federal funds rate. interest rates are rising. Explain how this would impact a negat..

Discounted cash flow problem : Solve following Discounted Cash Flow (DCF) Problem: In late 2013, catcher Brian McCann signed up at $85 million. At the same time Jacob Ellsbury signed up at $153 million. Assuming that Clayton is happy with a nominal interest rate (that always inclu..

Ethics codes help companies to keep standardized way : Ethics Codes help companies to keep a standardized way to take decision else the decision can be biased. Unethcial behaviors can damage the reputation od the company. Also if companies do not take strong measures against these then these can have neg..

Describe the current economic climate in the countries : You have $100,000 in cash and are charged with building a portfolio consisting of bond only. There are no restrictions. You can invest in bond from anywhere in the world. Economic Climate – Describe the current economic climate in the countries or re..

User Account

All Pages