What is the yield to maturity for bonds

Assignment Help Financial Management
Reference no: EM13909180

Atlantis Fisheries issues zero coupon bonds on the market at a price of $319 per bond. Each bond has a face value of $1,000 payable at maturity in 11 years. What is the yield to maturity for these bonds? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Yield to maturity               %

Reference no: EM13909180

Questions Cloud

Define the term business process reengineering : Define and contrast the following pairs of terms: dot-com and bricks-and-clicks; intranet and extranet; B2C and B2B. Define the term business process reengineering, and describe its importance to information systems work.
Debt obligation of the issuer : Which of the following investments in NOT a debt obligation of the issuer?
What should price per share be for firms common stock : Suppose a firm is anticipated to have a Net Income per Share of $25 next year and is expected to pay only 20% of (total) Net Income in Dividends. Also, the firm faces an unusually high cost of common stock of 22% and has an unusually low dividend gro..
What is the ytm and current yield : Rolling Company bonds have a coupon rate of 9.40 percent, 19 years to maturity, and a current price of $1,256. What is the YTM? The current yield?
What is the yield to maturity for bonds : Atlantis Fisheries issues zero coupon bonds on the market at a price of $319 per bond. Each bond has a face value of $1,000 payable at maturity in 11 years. What is the yield to maturity for these bonds?
What is the price of the stock five years from now : O'Leary Corporation's last dividend paid was $1.00. Dividends are expected to grow at a rate of 17% this year, 15% next year, 10% the following year and 5% thereafter. The required rate of return is 15%. What is the price of the stock 5 years from no..
Suggestion of a social networking web application : You are an employee of your state's department of motor vehicles (DMV). The people of your community come in to receive services related to driver's licenses, driver's tests, vehicle registration, personalized license plates, and so forth.
Compute the break even point in dollar sales : Mingei Co. produces and sells two products, BB and TT. It manufactures these products in separate factories and markets them through different channels.
Find the steady-state probabilities for the embedded chainf : Find the steady-state probabilities {πi; i ≥ 0} for the embedded chain. Assume that the transition rate νi out of state i, for i ≥ 0, is given by νi = 2i.

Reviews

Write a Review

Financial Management Questions & Answers

  What would the bond equivalent yield

You have a U.S. Treasury bill with 112 days to maturity quoted at a discount yield of 3.82 percent. Assume a $1 million face value. What would the bond equivalent yield?

  Assume the dividend tax rate is zero

The firm you are CEO if has a current period cash flow of 1.0 million and pays no dividend. The present value of the company’s future cash flows is $2.5 million. The company is entirely financed with equity and there are 500,000 shares outstanding. A..

  What is her itemized deduction for taxes paid for the year

Betty paid $5,000 of state income taxes in 2011. She also paid $75 in vehicle/property taxes to renew her vehicle as well as $3400 in real estate taxes on a lot of land she owns in Hawaii. She also paid $2500 in sales tax on the purchase of a new boa..

  Use one paragraph to discuss the concepts and the other

important in order to receive full credit you need to answer the questions with a minimum of twoparagraphs. use one

  Approaches operating cash flow ebit-depreciation-taxes

A proposed new project has projected sales of $129,000, costs of $63,000, and depreciation of $13,200. The tax rate is 30 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.) Approaches..

  Find the periodic payment

Find the periodic payment R required to amortize a loan of P dollars over t years with interest charged at the rate of r% year compounded m times a year.

  What level of sales is she predicting for june

Marcia Almeida works as a sales analyst for a toy manufacturer. She predicts that toy sales will decrease by 20% from May to June. If the amount of the sales decrease is $605,400, what level of sales is she predicting for June? Because of Father's Da..

  Individual component costs of capital

Compute the cost of capital for the firm for the following-A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 10.9%. Interest payments are $54.50. The bonds have a current market value of $1,120 and will mature ..

  What effective annual rate are they paying

Binder’s Books offers customers credit terms of 4/10, net 40. If their customers don’t take the discount, what effective annual rate are they paying?

  The market risk associated with individual stock

The market (systematic) risk associated with an individual stock is most closely identified with the: A) variance of the returns of the stock. B) variance of the returns of the market. C) beta of the stock. D) standard deviation of the

  What are the nal and irr of the lease

Interpret each value.b. Assume now that the bank loan would cost 15 percent, but all other facts remain the same. What is the new NAL? The new IRR?

  Considered when making a rent-or-buy decision

Sophia Hams IS a single woman in her late 20’s. She is renting an apartment in the fashionable part of town for $1,200 a month. After much thought, she’s seriously considering buying a condominium for $175,000. Given the information provided, use Wor..

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