What is the yield to call on a bond

Assignment Help Finance Basics
Reference no: EM132807087

1) A company has bonds with 14 years remaining to maturity. They have $1,000 par value. Coupon interest rate is 11.60%, paid annually. If their yield to maturity is 12.0%, what is the current market price of these bonds?

2) What is the yield to call (YTC) on a bond with maturity of 15 years, 7.0% semiannual coupon, par value of $1,000, and callable in 8 years at a call price of $1,070. The market price of the bond is $1,312.

Reference no: EM132807087

Questions Cloud

What does assessment look like in the science classroom : What does assessment look like in the science classroom and why is it important? Give one example of a science assessment you have observed in your practicum.
Calculate total labour variance and labour price variance : The company actually manufactured 20000 pens in a week. Calculate the total labour variance and the labour price variance for the week.
Determine the expected dividend : Blossom Natural Foods' current dividend is $11.00. You expect the growth rate to be 0 percent for years 1 to 5, and 2 percent for years 6 to infinity.
What technological adaptations help you to function : Consider the climate in which you live. What technological adaptations help you to function? Are there any biological features you possess which have helped.
What is the yield to call on a bond : What is the yield to call (YTC) on a bond with maturity of 15 years, 7.0% semiannual coupon, par value of $1,000, and callable in 8 years at a call price
Determine the division of net income between the partners : Anderson and Smith, In 2020, the partnership earned a net income of $30,000. Determine the division of net income between the partners.
Massey pest control has been acquiring smaller businesses : Massey Pest Control has been acquiring smaller businesses to join their franchise. What is Massey goal for acquiring smaller companies.
Describe what you have learned about balanced literacy : Describe what you have learned about balanced literacy. Pretend you will be presenting this workshop to brand new teachers from another country.
Compute dakota division sales margin : Compute Dakota Division's sales margin, capital turnover, and return on investment for the year. Data pertain to Dakota Division's most recent year of operation

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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