What is the yield to maturity-coupon rate on the bond

Assignment Help Financial Management
Reference no: EM13723797

A municipal bond has 5 years until maturity and sells for $5,156. If the coupon rate on the bond is 5.88 percent, what is the yield to maturity? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Reference no: EM13723797

Questions Cloud

Describe the business function of marketing management : Why is analysis important to the business function of marketing management,  Why should marketers emphasize consistency of marketing communications across all message channels
Two mutually exclusive projects : Consider the following two mutually exclusive projects, X and Y, and their cash flows information, Project Year 0 Year 1 Year 2 Year 3 Year 4 X ($1,400) $350 $750 $650 $650 Y ($1,000) $300 $400 $500 $600 (a) Assume that the discount rate is 12%, comp..
Investment account that generates a nominal rate of return : Lee plans to retire in 22 years with a nest egg of $8M. He has already saved $500,000 in an investment account that generates a nominal rate of return of 12%, compounded quarterly. However, he needs to withdraw $150,000 from this account in 10 years ..
Describe and explain how one leadership model : Describe and explain how one leadership model (a model deemed valid by today's research standards, as discussed in the module material) interacts with the most important performance outcomes with regard to teams.
What is the yield to maturity-coupon rate on the bond : A municipal bond has 5 years until maturity and sells for $5,156. If the coupon rate on the bond is 5.88 percent, what is the yield to maturity? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Describe what the company should do to help increase sales : Choose a company, and describe the target market for products sold by the company. Briefly describe what the company should do to help increase sales
Markets custom application-specific integrated circuits : Electronic Timing, Inc. (ETI), is a small company founded 15 years ago by electronics engineers Tom Miller and Jessica Kerr. ETI manufactures integrated circuits to capitalize on the complex mixed-signal design technology and has recently entered the..
Describe what the company should do to help increase sales : Choose a company, and describe the target market for products sold by the company. Briefly describe what the company should do to help increase sales
Examine the role of enterprise resource planning : Examine the role of Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM). Determine how each system can play a critical role in managing value chains. 1 paragraph and cite

Reviews

Write a Review

Financial Management Questions & Answers

  What is the current value of the annuity

A five-year annuity of ten $8,000 semi annual payments will begin 9 years from now, with the first payment coming 9.5 years from now. If the discount rate is 8 percent compounded monthly, what is the value of this annuity 5 years from now? What is th..

  Approximate after-tax cost of debt for a new issue of bonds

The coupon rate on an issue of debt is 12%. The yield to maturity on this issue is 14%. The corporate tax rate is 31%. What would be the approximate after-tax cost of debt for a new issue of bonds? The coupon rate on a debt issue is 12%. If the yield..

  Factors that affect the corporate cost of capital

The Board Chair is concerned about factors that affect the corporate cost of capital for any business: the level of interest rates, tax rates, capital structure policy, and capital investment policy. Does the tax rate, cost of debt, or cost of equity..

  Explain what is the firm''s income tax liability

Dividends received of $44,209, dividends paid of $10,000, and income taxes. What is the firm's income tax liability?

  What is the pre-tax cost of debt

Aspen's Distributors has a cost of equity of 13.84% and an unlevered cost of capital of 12%. The company has $5,000 in debt that is selling at par value. The levered value of the firm is $12,000 and the tax rate is 34%. What is the pre-tax cost of de..

  Capital asset pricing model

(Capital Asset Pricing Model) CSB, Inc. has a beta of 0.765. If the expected market return is 10.5 percent and the risk-free rate is 3.5 percent, what is the appropriate expected return of CSB ( using the CAPM)? The appropriate expected return of CSB..

  What break-even resale price in three years

What break-even resale price in three years will make you indifferent between buying and leasing?

  Define capital investment budget

Choose a health care facility that you are currently working with or one that you would like to work for in the future. This facility will be used throughout the course as you plan your capital investment budget.

  What is the strips price

A STRIPS traded on April 1 2011, matures in 10 years on April 1 2021. Assuming a 5 percent yield to maturity, assume a face value of $100. What is the STRIPS price?

  1 the tiger company has an opportunity to make an

1 the tiger company has an opportunity to make an investment with the following estimated after tax cash flows-year

  Size-up hcm using historical ratio analysis

Value the business from the potential buyer's (Great Wall) viewpoint, considering the changes that it will make, explaining fully.

  Discuss and analyse all the issues in order

Discuss and analyse all the issues in order, and any other implications arising from this scenario for presentation to Mark Golledge .

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