What is yield-to-maturity of this bond

Assignment Help Financial Management
Reference no: EM131312422

United Air has a 5.75% coupon 20 year bond (par value = 1,000). Assume that coupon payments are semi-annual and that the current price is $965.45. What is the yield-to-maturity of this bond?

Reference no: EM131312422

Questions Cloud

Ethical issues-business ethics and moral philosophy : Explain the terms ethical issues, business ethics, and moral philosophy. essay format but a small paragraph would do. also my professor uses turnitin so do not want any plagiarisms.
Provide example of higher tco based on international trade : Each of you should provide an example of higher TCO based on international trade, global supply chain.
How the use of such contracts may increase the likelihood : If anything goes wrong, the contractor has to pay. Suggest how the use of such contracts may increase the likelihood that product risks will arise.
How will you notify people of potentially dangerous : BHR 3352 : Hazard communication: How will you notify people of potentially dangerous or unhealthy work conditions?Blood-borne pathogens: How will you protect employees from blood-borne pathogens such as AIDS?
What is yield-to-maturity of this bond : United Air has a 5.75% coupon 20 year bond (par value = 1,000). Assume that coupon payments are semi-annual and that the current price is $965.45. What is the yield-to-maturity of this bond?
Calculate the tax on the sale of each asset : Capital gains taxes Perkins Manufacturing is considering the sale of two nondepreciable assets, X and Y. Asset X was purchased for $2,000 and will be sold today for $2,250. Asset Y was purchased for $30,000 and will be sold today for $35,000. The fir..
Best suited to a multinational internet retailer : What type of structure will be best suited to a multinational Internet retailer? Why? How would you recommend building a culture that was inclusive of diverse cultures and accommodates highly creative technical staff?
Define least power necessary to pump heat out continously : A domestic food freezer maintains a temperature of - 15°C. The ambient air temperature is 30°C. If heat leaks into the freezer at the continuous rate of 1.75 kJ/s what is the least power necessary to pump this heat out continuously.
Using cash accounting and the preceding values : Accrual income versus cash flow for a period Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they must be paid for within 30 days but can be returned for a full refund credit..

Reviews

Write a Review

Financial Management Questions & Answers

  Explain site analysis performed by a consulting firm

The site analysis performed by a consulting firm (at a cost of $50,000 to General Food) shows that the land is suitable for the plant. The plant will cost $5.5 million to build.

  What is its debt and common equity

Midwest Electric Company (MEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of rd = 9% as long as it finances at its target capital structure, which calls for 25% debt and 75% common equity. What is its cost o..

  The present value of the generated cash flows

Your company will generate $50,500 in cash flow each year for the next eleven years from a new information database. The computer system needed to set up the database costs $282,000. Assume you can borrow the money to buy the computer system at 8.50 ..

  What is the accounts receivable balance

Suppose sales for the entire year were 100,000 and the COGS were 80% of sales. The inventory conversion period is 40 days. The accounts payable deferral period is 15 days, and the cash conversion cycle is 30 days. What is the accounts receivable bala..

  Why don'' insurance companies offer income insurance

With income insurance, if a person loses his job or doesn't get as big a raise as anticipated, he would be compensated under his insurance coverage. Why don't insurance companies offer income insurance of this type?

  What are three ways the yield curve changes or moves

The following question has two parts and pertains to the yield curve. Suppose on February 6, 2007, the following information is available from the Treasury spot curve: What are three ways the yield curve changes or moves? How are these three changes ..

  Calculate the expected number of units to be replaced

Calculate the expected number of units to be replaced in each of weeks 1 to 7. What rate of failures can be expected in the long run?

  Lower income tax rates

“I promise to lower income tax rates. And I won’t have to cut spending, because the lower rates will induce so much economic activity that tax revenues will rise.” Would this promise be more credible coming from a candidate for U.S. president or a ca..

  What is the project year zero net cash flow

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.49 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life. If the tax rate is 34 percent..

  How much will this bond be worth upon conversion

A $1,000 par value bond, callable at $1,100, can be convertible into 20 shares of common stock. Currently, the common stock sells for $40 and the bond sells for $950. How much will this bond be worth upon conversion?

  What is the firms optimal capital structure

A clinic has obtained the following estimates for its costs of debt and equity at various capital structures: What is the firm’s optimal capital structure? Calculate its corporate cost of capital at each structure.

  Offered two options for a severance package

Your annual salary is $100,000. You are offered two options for a severance package. Option 1 pays you six months' salary now. Option 2 pays you and your heirs $6,000 per year forever (first payment at the end of this year). If your required return i..

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