What is the yield to call of bond

Assignment Help Financial Management
Reference no: EM131491990

A 5.80 percent coupon bond with 13 years left to maturity can be called in nine years. The call premium is one year of coupon payments. It is offered for sale at $1,157.30. What is the yield to call of the bond? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)

Reference no: EM131491990

Questions Cloud

Compute taxable equivalent yield and yield to maturity : Compute the yield to maturity. Compute the taxable equivalent yield.
Write the network addresses for the provided ip address : Write the network addresses for the provided IP address/subnet mask. Using the IP address and subnet mask shown, write the host address.
Recall that the net present value and internal rate : Recall that the net present value (NPV) and internal rate or return (IRR) techniques take the time value of money into consideration.
What is the subnet mask for creating the four subnets : What is the subnet mask for creating the four subnets illustrated in Figure earlier in the chapter?
What is the yield to call of bond : The call premium is one year of coupon payments. It is offered for sale at $1,157.30. What is the yield to call of the bond?
What command enables a dhcp relay on a cisco router : What are the port numbers for the DHCP protocol? List 11 top level domains.
Determine the required rate of return-market risk premium : Try to determine the required rate of return on Tilden Woods Corporation’s common stock.
Even numbers are not really removed from the array : Even numbers are not "really" removed from the array. Since arrSize is passed by reference, updating it will reflect the new logical size.
Calculate the required return : King Farm Manufacturing Company’s common stock has a beta of 1.74. calculate the required return on King Farm Manufacturing’s common stock.

Reviews

Write a Review

Financial Management Questions & Answers

  What is value today of a perpetual stream

Given an interest rate of 10% per year, what is the value today of a perpetual stream of $3,000 annual payments that begins today?

  What is the discount rate applicable to division

International Exchange has three divisions: A, B, and C. Division A has the least risk and Division C has the most risk. The firm has an aftertax cost of debt of 6.1percent and a cost of equity of 14.3 percent. The firm is financed with 37 percent de..

  Which equals the bonds face value

A 12-year bond that has a 12 percent coupon rate is currently selling for $1,000, which equals the bond's face value. If interest is paid semiannually, the bond's yield to maturity is

  (traditional-roth and including their respective tax feature

Describe the three basic tpyes of IRA's (traditional, roth and nondeduductible, including their respective tax feature and what it takes to qualify for each. Which is most appealing to you personally? Explain.

  What is the standard deviation of a portfolio

Stock A will return 15 percent in a normal economy and lose 14 percent in a recession. Stock B deals with inferior goods and will return 7 percent in a normal economy and 18 percent in a recession. There is a 20 percent chance of a recession occurrin..

  Considering project which will provide annual cash inflows

You are considering a project which will provide annual cash inflows of $4,500, $5,700, and $8,000 at the end of each year for the next three years, respectively. what is the net present value of these cash flows, given a 9 percent discount rate?

  What is the operating cash flow for ebc

During 2014, Eagle Beach Company (EBC) had sales of $575,000, cost of goods sold of $425,000, administrative and selling expenses of $95,000, depreciation expense of $140,000 and interest expense of $70,000. The tax rate is 35 percent. Ignore any tax..

  Calculate the value of the treasury note

Assume that a $1,000,000 par value, semi annual coupon U.S. Treasury note with five years to maturity (YTM) has a coupon rate of 5%. The yield to maturity of the bond is 7.70%. Using this information and ignoring the other costs involved, calculate t..

  What is the value of the firm according to proposition

Tool Manufacturing has an expected EBIT of $65,000 in perpetuity and a tax rate of 35 percent. The firm has $160,000 in outstanding debt at an interest rate of 8.4 percent, and its unlevered cost of capital is 12 percent. What is the value of the fir..

  Different growth rates distort a comparative ratio analysis

How might (a) seasonal factors and (b) different growth rates distort a comparative ratio analysis? Give some examples. How might these problems be alleviated?

  Calculate the total amount of each installment payment

On November 1, 2015, Norwood borrows $450,000 cash from a bank by signing a five-year instalment note bearing 8% interest. The note requires equal total payments each year on October 31. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropria..

  Method of payment impact the returns to target shareholders

How does the method of payment (cash vs. stock) impact the returns to target shareholders?

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