What is the yield to maturity of bond

Assignment Help Financial Management
Reference no: EM131325069

Suppose the following bond quote for IOU Corporation appears in the financial page of today’s newspaper. Assume the bond has a face value of $1,000 and the current date is April 15, 2015.

Company                                                                                               EST Vol

(Ticker)     Coupon         Maturity            Last Price        Last Yield      (000s)

IOU(IOU)   6.6              Apr 15, 2031       103.06              ??              1,829

What is the yield to maturity of the bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

YTM=

What is the current yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Current Yield=    

Reference no: EM131325069

Questions Cloud

Explain the recording process and the accounting equation : In your own words, explain the recording process and the accounting equation to someone who has no accounting experience - Then, give your opinion on the elements or areas that might cause the most confusion or be the most difficult to grasp.
Describe a real world example : Research and briefly describe a real world example about how acid rain affects plants. Be sure to demonstrate how pH contributes to the outcome, and proposed solutions (if any). Descriptions should be approximately 2 - 3 paragraphs.
Complete business continuity plan from materials produced : The Structured External Assignment for this class will be the compilation of a completed Business Continuity Plan from the materials produced through the block.
Calculate the additions to the work-in-process : Calculate the companys predetermined overhead application rate - Calculate the additions to the work-in-process inventory account for the direct material used, direct labor, and manufacturing overhead.
What is the yield to maturity of bond : Suppose the following bond quote for IOU Corporation appears in the financial page of today’s newspaper. Assume the bond has a face value of $1,000 and the current date is April 15, 2015. What is the yield to maturity of the bond? What is the current..
Spend more time on the interpretive elements of the image : In the paper you must spend more time on the interpretive elements of the image by defining the content or meaning of the work based on the visual evidence that supports your assumptions?
Human brain is the centre of memory : Which part of the human brain is the centre of memory, learning, thinking and reasoning?
List at least three major categories of cyber terrorism : List at least three major categories of cyber terrorism and / or information warfare. Among the chosen categories, determine the one that should be the top priority for the federal government to address.
Define the service level agreement : Your customer has asked you to define the Service Level Agreement - paper that defines the components required in the SLA .Service Level Agreement (SLA) and incident-management planning

Reviews

Write a Review

Financial Management Questions & Answers

  What is the net gain or loss for each country

In comparison with free international lending, what happens if each country imposes a 2 percent tax on the international lending? What is the net gain, or loss, for each country?

  Macrs schedule calculate the npv of this project

Warmack Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $570,000 is estimated to result in $240,000 in annual pretax cost savings. The shop’s tax rate is 30 percent and its discount..

  What is the projects npv

What is the projects NPV and Should the project be accepted - Why or why not - Applying Various Capital Budgeting Methodologies

  What were total cash expenses

Great Forks Hospital reported net income for 2012 of $2.4 million on total expenses of $30 million. Depreciation expense totaled $1 million. What were total expenses for 2012? What were total cash expenses for 2012?

  What is the initial investment outlay for the machine

You must evaluate a proposal to buy a new milling machine. The base price is $117,000, and shipping and installation costs would add another $13,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $46,800. What ..

  Coupon bond-pays interest annually is selling at par value

A coupon bond that pays interest annually is selling at par value of $1,000, matures in five years, and has a coupon rate of 9%. The yield to maturity on this bond is :

  Risk-level equivalent to that of overall market

Your portfolio has a beta of 1.23. The portfolio consists of 18 percent U.S. Treasury bills, 28 percent in stock A, and 54 percent in stock B. Stock A has a risk-level equivalent to that of the overall market. What is the beta of stock B?

  Annual inflation rate is expected

You would like to have $30000 (in real $) in an account 50 years from now. If the annual inflation rate is expected to be 2.4%, and you expect a nominal annual return of 7% on the account, how much would you need to put in today?

  What was the average nominal risk-free rate of return

Assume large-company stocks returned 12.8 percent on average over the past 75 years. The risk premium on these stocks was 7.9 percent and the inflation rate was 3.6 percent. What was the average nominal risk-free rate of return for those 75 years?

  Determine the sources of credit available

Determine the sources of credit available (where can you get credit, advantages and disadvantages of the types).

  Capital market instruments include

Capital market instruments include:

  Capital spending possible without selling any new equity

The Readata Corporation practices a residual dividend policy and maintains a capital structure of 60% debt, 40% equity. Net income for the year is $5,000. What is the maximum amount of capital spending possible without selling any new equity? Suppose..

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