What is the yield to maturity of this bond

Assignment Help Financial Management
Reference no: EM131599639

A Japanese company has a bond outstanding that sells for 89 percent of its ¥100,000 par value. The bond has a coupon rate of 5.6 percent paid annually and matures in 18 years. What is the yield to maturity of this bond?

Reference no: EM131599639

Questions Cloud

Create value for shareholders in the long term : Do activist investors like Daniel Loeb create value for shareholders in the long term?
What is firm weighted average cost of capital : What is the firm’s weighted average cost of capital (WACC2) if it has to issue new common stock?
Estimate made from the three estimation methodologies : What is the cost of new common equity considering the estimate made from the three estimation methodologies?
Rate of return does the investor expect to receive on stock : Which rate of return does the investor expect to receive on this stock if the stock is purchased today ?
What is the yield to maturity of this bond : The bond has a coupon rate of 5.6 percent paid annually and matures in 18 years. What is the yield to maturity of this bond?
Which rate of return does investor expect to receive stock : Which rate of return does the investor expect to receive on this stock if the stock is purchased today?
Increased demand for health care services leads : Increased demand for health care services leads to an increasing need for health care organizations to be cost efficient.
Finding required interest rate-time to reach financial goal : What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds?
Estimate the value of the firm : Caballos, Inc., has a debt to capital ratio of 31%, a beta of 1.88 and a pre-tax cost of debt of 7.6%. Estimate the Value of the Firm.

Reviews

Write a Review

Financial Management Questions & Answers

  A firm credit policy consists of which of the items

A firm's credit policy consists of which of the following items?

  What is project equivalent annual cost or EAC

If the required return is 11 percent, what is this project's equivalent annual cost, or EAC?

  Mortgages of that maturity carry a fixed interest rate

A prospective homeowner wants to determine how much she can borrow in the form of a fixed-rate 20-year mortgage. Mortgages of that maturity carry a fixed interest rate of 9.00%. How large a mortgage can she afford, assuming she makes steady payments ..

  It is important for society as whole to solve agency problem

It is important for society as a whole to solve the agency problem,

  After-tax required rate of return

How much more or less would the recurring after-tax cash operating savings have to be for ATL to exactly earn the 16% after-tax required rate of return?

  Calculate the average collection period

Calculate the average collection period. What is the amount of the company’s average receivables? What is the receivables turnover?

  Cash flow to stoclkholders and cash flow to creditors

Volbeat Corp. shows the following information on its 2015 income statement: sales = $275,000; costs = $188,000; other expenses = $7,900; depreciation expense = $15,200; interest expense = $13,600; taxes = $17,605; dividends = $10,500. In addition, yo..

  The present value of the investment

An investment offers $3,300 per year for 19 years, with the first payment occurring one year from now. If the required return is 8 percent, the present value of the investment is $___. If the payments occurred for 34 years, the present value of the i..

  Regarding civil liberties rather than civil rights

Which of the following statements is true regarding civil liberties rather than civil rights?

  What cash movements took place on each day of trading

What cash movements took place on each day of trading?-  How much wealth (profit) was generated on each day of trading?

  What is the company pretax cost and aftertax cost of debt

Drogo, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 10 years to maturity that is quoted at 108 percent of face value. The issue makes semiannual payments and has an embedded cost of 9 percent annually. Wha..

  Constant growth valuation

Constant growth valuation Thomas Brothers is expected to pay a $1.1 per share dividend at the end of the year (that is, D1 = $1.1). The dividend is expected to grow at a constant rate of 8% a year. The required rate of return on the stock, rs, is 16%..

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