What is the yield to maturity of the bond

Assignment Help Financial Management
Reference no: EM131361355

A bond sells for $985.45 and has a coupon rate of 6.50 percent. If the bond has 31 years until maturity, what is the yield to maturity of the bond?

Reference no: EM131361355

Questions Cloud

Provide detailed information about company performance : There is much information presented in these reports. The primary objective of this assignment is for each team member to become familiar with the depth of information available to them to make marketing decisions, and to accomplish that without..
Find the expression corresponding to the density of states : Using this, find the expression corresponding to the density of states of equation that is correct at all speeds. (Equations only give the answer for kinetic energy, εkin = ε - mc2, in the high- and low-speed extremes.)
Should be communicated to the audit committee : During your review of the sales accounts at 120340 Ontario Inc., you enquired of management about sales to customer account 23-524. The account accumulates sales to a related company. Clearly identify and explain the matters that should be communicat..
Define the canonical correlation statistical procedure : Your assignment is to write a 5-7 page discussion to: (1) define the canonical correlation statistical procedure, discuss how regression analysis plays a central role in canonical correlation, explain how to interpret the canonical correlation;
What is the yield to maturity of the bond : A bond sells for $985.45 and has a coupon rate of 6.50 percent. If the bond has 31 years until maturity, what is the yield to maturity of the bond?
Considering introducing new line of dried flowers : Healthy Food Inc. is considering introducing a new line of dried flowers. The firm expects to be able to generate $ 4 million in revenue from this new line, each year for the next 10 years, and have a pre-tax operating margin of 50% on these revenue...
Average and standard deviations : We want to test a claim that we have reduced the average wait time at our bank from year one to year two. We have a sample of 40 wait times from each year, but the average and standard deviations for each year are not known. Which statistical test..
Estimate of the energy of the fermi surface in ev : conduction electrons in copper metal, for which there are about 8 × 1028 conduction electrons per cubic meter (comparable with the density of copper atoms);
What is the background of the current market : Strategic positioning is an integral aspect of the potential success of a company. Review the links below regarding Kellogg's (Who Killed Tony the Tiger? How Kellogg Lost Breakfast and Will Kellogg's Cereal Sales Ever Return to Normal?), and consi..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the net operating profit after taxes

Using Rhodes Corporation’s financial statements (shown below), answer the following questions. What is the net operating profit after taxes (NOPAT) for 2010? What are the amounts of net operating working capital for both years? What are the amounts o..

  Securities are categorized as trading securities

In 2016, a company purchases securities at a cost of $225,000. Their year-end value is $237,500. In 2017, these securities are sold for $230,000 and new securities are purchased for $305,000. At the end of 2017, the securities have not yet been sold,..

  Decrease the credit period

Which of the following will decrease the credit period? I. Increase in the buyer's inventory period II. Increase in the buyer's operating cycle III. Decrease in the buyer's inventory cycle IV. Decrease in the buyer's operating cycle

  How much external financing is required by ari next year

Appalachian Registers, Inc. (ARI) has current sales of $50 million. Sales are expected to grow to $75 million next year.- How much external financing is required by ARI next year?

  What is the intrinsic value of portmans stock

Portman industries just paid a dividend of $2.40 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 12.00% over the next year. After teh next year, though, Portman's dividend is expected to g..

  Compute the firms price-earnings ratio

Reagan Corp. has reported a net income of $836,200 for the year. The company's share price is $13.03, and the company has 307,810 shares outstanding. Compute the firm's price-earnings ratio.

  Bond valuation-quarterly interest

Calculate the value of a $5000-par-value bond paying quarterly interest at an annual coupon interest rate of 10% and having 10 years until maturity if the required return on similar-risk bonds is currently a 12% annual rate paid quarterly.

  Describe the nature of stock-out costs associated

Describe the nature of stock-out costs associated with a stock-out in the following:

  The risk-free rate and beta remain unchanged

Yonan Corporation's stock had a required return of 11.5% last year, when the risk-free rate was 5.5% and the market risk premium was 4.75%. Now suppose there is a shift in investor risk aversion, and the market risk premium increases by 2%. The risk-..

  How long will it be before your inheritance is worth

You have just inherited $560,000. You plan to save this money and continue to live off the money that you are earning in your current job. If you can invest the money in a bond that pays 5.46 percent interest annually, how long will it be before your..

  The bond yield to maturity at the end of the year

A bond that pays coupons annually is issued with a coupon rate of 4.1%, maturity of 25 years, and a yield to maturity of 7.1%. What rate of return will be earned by an investor who purchases the bond and holds it for 1 year if the bond’s yield to mat..

  What price should the annual payment bond sell

ABC Co.'s Class K bonds have a 12-year maturity, $1,000 par value, and a 6.75% coupon paid semiannually (2.875% each 6 months), and those bonds sell at their par value. ABC's Class P bonds have the same risk, maturity, and par value, but the P bonds ..

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