What is the yield to maturity of bond

Assignment Help Financial Management

Reference no: EM131999550

1. A Japanese company has a bond outstanding that sells for 106 % or its 100,000 par value. The bond has a coupon rate of 2.8% paid annually and matures in 21 years. What is the yield to maturity of this bond?

2. The Jackson-Timberlake Wardrobe Co. just paid a dividend of $2.00 per share on its stock. The dividends are expected to grow at a constant rate of 3 percent per year indefinitely. If investors require a 13 percent return on The Jackson-Timberlake Wardrobe Co. stock, what is the current price? Answer with 2 decimals (e.g. 10.12).

Reference no: EM131999550

Questions Cloud

The firm executes money market hedge : What will be the approximate value of the exports in 1 year in US dollars given that the firm executes a money market hedge?

Identify the main symptoms observed in persons : Identify the main symptoms observed in persons who are experiencing psychological disorder. Use language appropriate for a counseling professional.

Break even exchange rate between the forward market hedge : The break even exchange rate between the forward market hedge and your option alternative is...?

International level a requirement : Do firms "really" have a choice when it comes to globalization? Or, is doing business on an international level a requirement for all businesses?

What is the yield to maturity of bond : The bond has a coupon rate of 2.8% paid annually and matures in 21 years. What is the yield to maturity of this bond?

Analyze a corporations social responsibility : Provide an argument as an agent (CEO) with a duty to the principle (Phishy) that supports your decision to remove the diet pill from the shelf.

Invasion of privacy for an employer to use social media : Do you think it is an Invasion of Privacy for an employer to use social media in employment considerations? Explain

Maintain constant growth rate in dividends : If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?

Organization in the branding process : What specific steps can a leader of a nonprofit initiate to engage their organization in the branding process?

User Account

All Pages