What must the coupon rate be on the bonds

Assignment Help Finance Basics
Reference no: EM131928459

A corporation has bonds on the market with 10.5 years to maturity, a YTM of 6.2 percent, a par value of 1,000, and a current price of $945. The bonds make semiannual payments. What must the coupon rate be on the bonds?

Reference no: EM131928459

Questions Cloud

Project expected npv can be negative : What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected.
Calculate the tax effect on income of selling the shares : Jolene is concerned that they are not getting the best return on their Corb Company stock. Calculate the tax effect on their 2015 income of selling the shares.
What is the effective annual rate : The balance at the end of 42 years is $1,800,000. What is the nominal interest rate on this investment (APR)? What is the Effective annual rate?
Main sources of profitability : Like the securities they hold as assets and the securities they issue; and their main sources of profitability?
What must the coupon rate be on the bonds : The bonds make semiannual payments. What must the coupon rate be on the bonds?
What does the data suggest about financial market : What does this data suggest about financial market expectations of 1 year yields, 1 year from now? Explain.
Prepare journal entry at december for full year payroll : Telmarine Company's payroll taxes are: FICA 8%, state unemployment 2.50%, Prepare a summary journal entry at December 31 for the full year's payroll
Determine whether or not the firm should make the investment : A firm has the opportunity to invest in a project that is expected to pay an end-of-year annual return of $2 million for each of the next fifteen years.
What annual deposit must newman make if the fund will earn : Newman Hitchcock is 38 years old today and he wishes to accumulate. What annual deposit must Newman make if the fund will earn 11% interest compounded annually?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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