What was the current yield of bond one year ago

Assignment Help Financial Management
Reference no: EM131873190

1. One year ago, a bond had a coupon rate of 6.26 percent, par value of $1000, YTM of 9.96 percent, and semi-annual coupons. Today, the bond’s price is 1,077.74 and the bond has 8 years until maturity. What was the current yield of the bond one year ago? The next coupon is due in 6 months. ( Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.)

2. Six months ago, a bond had a coupon rate of 4.68 percent, par value of $1000, YTM of 7.26 percent, and semi-annual coupons. Today, the bond’s price is 993.15 and the bond has 9 years until maturity. What was the current yield of the bond six months ago? The next coupon is due in 6 months. (Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.)

Reference no: EM131873190

Questions Cloud

What is the monthly standard deviation : What is the monthly expected rate of return? What is the monthly standard deviation?
What is the yield-to-maturity for bond : Both bonds have a coupon rate of 10.22 percent. What is the yield-to-maturity for bond A?
Financial statement audits and operational audits : Differentiate between financial statement audits and operational audits.
What quarterly expected return on savings contribution : Her first savings contribution is expected later today. What quarterly expected return does Lina need to earn to have 190,375 in 4 years?
What was the current yield of bond one year ago : Today, the bond’s price is 1,077.74 and the bond has 8 years until maturity. What was the current yield of the bond one year ago?
What is cost of the restriction in terms of sharpes measure : Calculate the following for a portfolio manager who is nor allowed to short sell securities. What is the cost of the restriction in terms of Sharpes measure?
Parker has nothing saved for retirement : Parker has nothing saved for retirement. Parker wants to receive 35,310 dollars per year for 6 years during retirement.
What rate of return would she have earned for past year : what rate of return would she have earned for the past year?
Bond has coupon rate of yield-to-maturity : Bond A has a coupon rate of 15 percent, a yield-to-maturity of 14.78 percent, and a face value of 1,000 dollars; matures in 12 years;

Reviews

Write a Review

Financial Management Questions & Answers

  Explain the project assessment methods the organization

Explain the project assessment methods the organization should have used to assess these projects (IRR, NPV, payback, and ARR) - What are the advantages and drawbacks to using each one?

  What is the present value of the dividends

What is the present value of the dividends to be received over the next five years if the discount rate is 15 percent.

  Determine brantley agi in each case

Analyze each transaction? below, independent of the? others, and determine Brantley's AGI in each case.

  Evaluate the interest rate risk facing bank

Assuming one has been hired to evaluate the interest rate risk facing a bank. How would you explain the interest sensitive gap management to senior management? What solutions would you recommend? Why?

  Identify what the key ratios are and apply ratio analysis

FINA6017 Financial Management. The analysis of the case study must: Analyse the financial statements of the business; Identify what the key ratios are and apply ratio analysis

  Using the free cash flow valuation model to price an IPO

Using the free cash flow valuation model to price an IPO. Assume that you have an opportunity to buy the stock of CoolTech, Inc., an IPO being offered for $12.50 per share. Although you are very much interested in owning the company, you are concerne..

  What is present value of the projects indefinite cash flows

Taylor's is considering a project which has an initial cost of $189,000, indefinite annual cash sales of $265,000, and indefinite annual cash costs of $218,000. The unlevered cost of capital is 15 percent and the tax rate is 35 percent. What is the p..

  What is the present value of this investment

A financial security pays $2 next year, $4 the year after that, then $2, then $4, then $2, and so on forever. If the annual, annual interest rate is 5%, what is the present value of this investment?

  What was its charge for depreciation and amortization

Pearson Brothers recently reported an EBITDA of $9.5 million and net income of $2.8 million. It had $2.0 million of interest expense, and its corporate tax rate was 30%. What was its charge for depreciation and amortization? Write out your answer com..

  What is the present value of a growing perpetuity

What is the present value of a growing perpetuity that makes a payment of $100 in the first year, which thereafter grows at 3% per year? Apply a discount rate of 7%.

  Six year old article on the bankruptcy

On a Sunday morning in September 2008, a reader browsing through archived stories in a Florida newspaper came across a six year old article on the bankruptcy of United Airlines (UAL). UAL had declared bankruptcy in 2002 but emerged from it in 2006. T..

  Risk that applies to most securities

Jessica is examining data for Gamma, Inc. She sees that Gamma has EBIT (operating profit) of $2,000,000. She knows that Gamma paid $400,000 in interest. Which one of the following is a risk that applies to most securities?

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