What is the yield to maturity

Assignment Help Finance Basics
Reference no: EM13259415

An investor is considering a bond that currently sells at a discount ($953) to the face value of $1,000. The coupon rate is 9.25% paid semiannually. If there are 15 years left on the bond what is the yield to maturity?

Reference no: EM13259415

Questions Cloud

Considered a binding contract by american law : Which of the following will be considered a binding contract by American law? Why? Laura offers to give Kenneth a novel if he promises to pick it up from her house. Kenneth accepts.
Prepare schedule of cash collections for july : Duffy Corporation hasprepared the following sales budget: Month. Prepare a schedule of cash collections for July through September.
Determine the angular speed of the sphere : A uniform solid sphere of mass 1.5 kg and diameter 30.0 cm starts from rest and rolls without slipping down a 35° incline that is 7.0 m long. Determine the angular speed of the sphere about its center at the bottom of the incline
What is the maximum profit and the maximum loss : An investor purchases 200 shares of XYX stock for $55.00 a share and immediately sells 2 covered call contracts at a strike price of $60.00 a share. The premium is $3.00 a share. What is the maximum profit and the maximum loss?
What is the yield to maturity : An investor is considering a bond that currently sells at a discount ($953) to the face value of $1,000. The coupon rate is 9.25% paid semiannually. If there are 15 years left on the bond what is the yield to maturity?
Define the purpose of adding 6 m hcl : Explain the purpose of adding 6 M HCl to the aqueous layer with sodium benzoate. Draw the reaction between sodium benzoate and HCl.
Calculate the following income statement items : The following financial data corresponds to Callahan Corporation,s 2012 operations. cost of goods sold $2000,000 selling and administrative expense $40,000 depreciation expense 85,000 sales 444,000.
What maximum height will it reach : A hollow ball is rolling along a horizontal surface at 3.2m/s when it encounters an upward incline. If it rolls without slipping up the incline
Calculate the next annual dividend amount : Company XYZ is currently trading at $97.00 a share. The expected growth rate is 4% and the required return rate is 7.8%. Calculate the next annual dividend amount using the Constant Dividend Growth Model.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the value of company

Gided Cage Corporation uses no debt. The weighted average cost of capital is 15%. The current market value of the company is $60 million. The corporate tax rate is 40%.

  Finance-interest and retirement

How much can you spend for each year after you retire? Your first withdrawal will be made at the end of your first retirement year.

  Percentage change in the price of bonds laurel

Whereas the Hardy Corp. bond has 15 years to maturity. If interest rates suddenly fall by 2 percent, the percentage change in the price of Bonds Laurel, Inc

  Election of directors through cumulative voting procedure

Blue Moon Company has one million shares of common stock outstanding. In a typical annual election for the board of directors, shareholders representing 70% of shares outstanding exersize their right to vote.

  Determine the expected return and beta for the portfolio

Multiple choice questions using beta, expected return and bond values and determine the expected return and beta for the portfolio.

  Computation of net present value with given data

Computation of net present value with given data and What is its net present value

  Explain valuation of bond for different ytms

Explain Valuation of bond for different YTMs compute the current price of the bonds if the present yield to maturity is 6 percent and 12 percent

  Present value help

Basic Buildings Inc. has decided to go public with a $5,000,000 new equity issue. Its investment bankers agreed to take a smaller fee now (6 percent of par value versus 10 percent) in exchange for a 1-year option to purchase an additional 200,000 ..

  Calculate profit and the return on investment

Lauren own a margin account and deposits of $50,000. Suppose the initial margin requirements is 40 percent, and The Gentry shoe corporation is selling at $25.00 per share:

  Compute price of bonds for olsens clothing stores

There are 25 years to maturity. Compute the price of the bonds based on semiannual analysis. With 20 years to maturity, if yield to maturity goes down substantially to 8 percent, what will be the new price of the bonds?

  Traditional financial and derivative financial instruments

Illustrate out the term underlying as it relates to derivative financial instruments? Write down the main distinctions between a traditional financial instrument and a derivative financial instrument?

  The bankruptcy laws

I do a lot of work with smaller corporations that are in severe financial difficulty. I constantly hear comments, from others, that bankruptcy is a dodge.

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