What is the yield to maturity if interest is paid once year

Assignment Help Financial Management

Reference no: EM131492553

A bond with a face value of $1,000 has 8 years until maturity, carries a coupon rate of 5.0%, and sells for $1,065.

a. What is the current yield on the bond? (Enter your answer as a percent rounded to 2 decimal places.)

Current yield %

b.What is the yield to maturity if interest is paid once a year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.)

Yield to maturity %

c. What is the yield to maturity if interest is paid semiannually? (Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.)

Yield to maturity %

Reference no: EM131492553

Questions Cloud

Using net present value when evaluating projects : Green Landscaping. Inc. is using net present value (NPV) when evaluating projects.The project will produce the same after-tax cash inflows of $655.460 per year

What is the yield to maturity for treasury bonds : what is the yield to maturity for treasury bonds that mature at the end of (A) 2018 (a two-year bond) and (B) 2019 (a three-year bond)?

What is annual percentage rate on your account : Your credit card company charges you 1.18 percent per month. What is the annual percentage rate on your account?

The impact of social networks on the communication skills : The impact of social networks on the communication skills of young people in Oman, Lack of face-to-face contact is becoming a serious issue.

What is the yield to maturity if interest is paid once year : bond with face value of $1,000 has 8 years until maturity, carries coupon rate of 5.0% and sells for $1,065. What is yield to maturity if interest is paid year.

Pick the least-expensive car for your new delivery service : You are trying to pick the least-expensive car for your new delivery service. If the business has a cost of capital of 13 percent, calculate the EAC.

Flowchart is most frequently used by auditor in connection : A flowchart is most frequently used by an auditor in connection with the

SPIN set-Enter earnings and deductions-Calculate payroll : Write a SPIN set of questions for two of the Features-Benefits listed-Change check dates, Enter earnings and deductions-Calculate payroll.

Reduce moral hazard problems : The two goals of linking pay to performance within firms are to mitigate adverse selection problems and to reduce moral hazard problems.

User Account

All Pages