What is the yield to maturity

Assignment Help Finance Basics
Reference no: EM132056972

There is a zero coupon bond that sells for $435.47 and has a par value of $1,000. If the bond has 14 years to maturity, what is the yield to maturity? Assume semiannual compounding.

Reference no: EM132056972

Questions Cloud

Calculate the expected dividend per share for each year : The dividend is expected to grow 8% a year for the next 3 years and then at 4% a year thereafter.
What is the payout ratio : Ralston Gourmet Foods Inc. earned $245 million last year and retained $185 million.
Determine what is the project pb and dpb : A project will cost $180,000. The after-tax future cash flows are expected to be $50,000 annually for 7 years. Based on the above information.
Make monthly deposits into savings account : If you are going to make monthly deposits into a savings account (earning 3% interest) how much will you need to save each month for the next 15 years?
What is the yield to maturity : There is a zero coupon bond that sells for $435.47 and has a par value of $1,000. If the bond has 14 years to maturity, what is the yield to maturity?
At what discount rate will we be indifferent : Project A: (-2,000, 500, 600, 700, 800) Project B: (-2000, 950, 850, 400, 300) If the discount rate is 12%, what is the discounted payback period for project A.
Compute the degree of financial leverage for cellu : Compute the degree of operating leverage for CellU. Compute the degree of financial leverage for CellU. Compute the degree of total leverage for CellU.
Months for the rescheduled option : Calculate the payment required in 16 months for the rescheduled option to settle the loan if money earns 5.55% compounded quarterly during the above periods.
What is the required rate of return on the stock : The current stock price is $97. The historical return on equity (ROE) of 12 percent is expected to continue in the future. What is the required rate of return

Reviews

Write a Review

Finance Basics Questions & Answers

  What will be the effect of this action on sooner return

What will be the effect of this action on Sooner's return on investment and its return on stockholders' equity if the funds received by reducing the average collection period are used to buy back its common stock at book value? What impact will this ..

  Monitored throughout modern organisations

Critically discuss how risk appetite and risk culture could be established, communicated, and monitored throughout modern organisations.

  Basic principles of stock options

The maximum gain equals the stock price minus the striking price.

  What segment of the external environment

What segment of the external environment has more impact on an organization?

  Payback period and net present value

Payback Period and Net Present Value. If a project with conventional cash flows has a payback period less than its life, can you definitively state.

  What is the npv of the project

How sensitive is the NPV to changes in the price of the new smart phone?

  What is the relationship between eva and mva

What reasons can you give for the bank's low return on common equity?- What impact do you think this performance by the bank is having on the value of its debt and equity securities?

  You have just borrowed 20000 to buy a new car the loan

you have just borrowed 20000 to buy a new car. the loan agreement calls for 60 monthly payments of 444.89 each to

  Relationship observed between ratings

Explain the relationship observed between ratings and yield to maturity. Explain why the coupon rate and the yield to maturity determine why the bonds would trade at a discount, premium, or par.

  What will be the value of the investment in two years

You identify a bank CD that pays an interest rate of 0.0500 with the interest being paid quarterly. What will be the value of the investment in two years?

  Compute break-even volumes for 6-day and 7-day operation

Total fixed costs per week would increase by $420 (or $29,820) if the mill were to operate on Sunday. a) Using the information provided above, compute the break-even volumes for 6-day and 7-day operation.

  What does the debt-equity ratio need to be for the firm

The firm's cost of equity is 14.5 percent and its pre-tax cost of debt is 8.5 percent. The tax rate is 34 percent. What does the debt-equity ratio need to be for the firm to achieve its target WACC?

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