User Account

All Pages

What is the yield to maturity of the bond

Assignment Help Accounting Basics
Reference no: EM132082834

Question - A local radio station issues a one-year zero-coupon bond. The face value is 1,000. You believe that the probability of bankruptcy is 8%. The appropriate discount rate (taking into account the risk of the investment) is 1.5%.

(i) What is the price of the bond?

(ii) What is the yield to maturity of the bond?

(iii) If the 1-year risk-free rate is 1%, what is the yield spread?

Reference no: EM132082834

Questions Cloud

Analyze challenges related to assessing individuals : Analyze challenges related to assessing individuals in your assigned age group and describe any special ethical and sociocultural issues which must.
What the company might do to improve its ability to address : Choose the two (2) segments of the general environment that would rank highest in their influence on the corporation you chose (AMAZON).
What is the appropriate number of shares for albacore : When calculating basic earnings per share for 2016, what is the appropriate number of shares for Albacore to use in the denominator of the EPS fraction
What you thought was worthy of your understanding : Define and describe what you thought was worthy of your understanding in half a page.
What is the yield to maturity of the bond : A local radio station issues a one-year zero-coupon bond. The face value is 1,000. What is the yield to maturity of the bond
Prepare a resume and cover letter for a specific position : Prepare a resume and cover letter for a specific, targeted position. se provide the original company link/job description instead of the 3rd party information.
Record the journal entry to recognize the sale : The asset originally cost $80,000 and had accumulated depreciation of $55,000 at the time of the sale. Record the journal entry to recognize the sale
What is a real-world example to support the theory : There are several theories or perspectives of personality described in this week's readings. Choose one that appeals to you, research one idea.
What advantages does your organization have : What do you do better than anyone else? What unique or lowest-cost resources can you draw upon that others cannot?

Reviews

Write a Review

Accounting Basics Questions & Answers

  What were the weighted-average accumulated expenditures

What were the weighted-average accumulated expenditures for 2017? What were weighted-average accumulated expenditures for 2018 by end of construction period?

  Compute per unit manufacturing cost under variable costing

Concord Corporation sells its product for $80 per unit. The per unit manufacturing cost under variable costing is

  What are the risks involved in the project

BAB had been approached in early 1992 by Mr YoussifKhadra, a Saudi businessman, who was planning to start operating an electric cable factory in Rhiyad.

  How did you create your workbook

How did you create your workbook? Did you start with a master sheet and create quarterly sheets from it? Explain your reasoning for your approach.

  Decides to offer two types of dinner cruise

Decides to offer two types of dinner cruise

  Compare values of ending inventory and cost of goods sold

Compare the values of ending inventory and cost of goods sold that result from using the three different methods

  Overseas customer and the special discounted price

Suppose there is ample idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $81.90 per unit. By how much would this special order increase (decrease) the company's net operat..

  Compute the amount of net income or net loss

Compute the amount of net income or net loss that Lilly should report for 2011, taking into consideration Lilly's security transactions for 2011.

  1 exercise 7-9 algorithmic periodic inventory by three

1. exercise 7-9 algorithmic periodic inventory by three methods cost of merchandise sold the units of an item

  Find the avc and mc for the level of output

Find the AVC and MC for the level of output at which the AVC curve is minimum

  Determine the adjustments that moxie would make

Determine the adjustments that Moxie would make in 2015 and 2016 to reconcile net income and stockholders' equity under U.S. GAAP to IFRS.

  Distinguish between fob shipping point and fob destination

Distinguish between FOB shipping point and FOB destination. Identify the freight terms that will result in a debit to Merchandise Inventory by the purchaser and a debit to Freight-out by the seller.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd