What is yield to maturity if interest is paid semiannually

Assignment Help Financial Management

Reference no: EM131992577

A bond with a face value of $1,000 has 8 years until maturity, carries a coupon rate of 7.0%, and sells for $1,085. a. What is the current yield on the bond? (Enter your answer as a percent rounded to 2 decimal places.) b. What is the yield to maturity if interest is paid once a year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.) c. What is the yield to maturity if interest is paid semiannually? (Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.)

Reference no: EM131992577

Questions Cloud

What was your combined tax rate : ssume that your average federal tax rate is 21% and your state tax rate is 7%. What was your combined tax rate?

Compute the true APR for this loan : Compute the true APR (annualized IRR) for this loan.

What is the maximum profit that the writer of call can make : If one has a bond portfolio, how does one offset his/her risk? What is the maximum profit that the writer of a call can make?

Disadvantages of fixed versus floating exchange rates : Discuss advantages and disadvantages of fixed versus floating exchange rates. What are macroeconomic impacts of exchange rate appreciations/depreciations?

What is yield to maturity if interest is paid semiannually : What is the yield to maturity if interest is paid semiannually? What is the yield to maturity if interest is paid once a year?

Generate perpetual growing stream of cash flows : Growth enterprises believes its latest project, which will cost $81,000 to install, will generate a perpetual growing stream of cash flows.

The rate of change in the GBPUSD spot rate : 6%. Assume for simplicity that the possible outcomes for the rate of change in the GBPUSD spot rate are:

Difference in writing call-new shares being sold by company : What is the difference between writing a call and new shares being sold by a company?

Cost basis of the go-cart track for depreciation purposes : What is the cost basis of the go-cart track for depreciation purposes?

User Account

All Pages