What would the annual yield to maturity be on the bond

Assignment Help Financial Management

Reference no: EM131444509

Fresh Fruit, Inc. has a $1,000 par value bond that is currently selling for $1,404. It has an annual coupon rate of 13.70 percent, paid semiannually, and has 22-years remaining until maturity. What would the annual yield to maturity be on the bond if you purchased the bond today and held it until maturity? Round the answer to two decimal places in percentage form

Reference no: EM131444509

Questions Cloud

How can advertisers use contrast to cut through the clutter : A critic says that marketing encourages women to hate their own bodies by showing them models that are impossibly thin. Compare how a typical consumer behavior researcher and a transformative consumer researcher might differ in their approach..

Find the fair price : LuLU Co. paid a dividend of 2 last year. They are expected to pay 2.2 this year. The rate of growth is expected to continue forever. Shareholders need to earn 15%. Find the fair price. Jeffersonco stock is currently valued at 8 per share. Find the pr..

Finance the purchase of a large tract of land : You have just arranged for a $1,860,000 mortgage to finance the purchase of a large tract of land. The mortgage has an APR of 8.8 percent, and it calls for monthly payments over the next 22 years. However, the loan has an eight-year balloon payment, ..

What is the broad subject of the movie : ECON 3462- What is the broad subject of the movie? Give a brief summary. What is its key take-away? From your understanding of the financial crisis, does it present events and issues accurately?

What would the annual yield to maturity be on the bond : Fresh Fruit, Inc. has a $1,000 par value bond that is currently selling for $1,404. It has an annual coupon rate of 13.70 percent, paid semiannually, and has 22-years remaining until maturity. What would the annual yield to maturity be on the bond if..

What the final score might be : After watching the video, please answer in two full paragraphs: Imagine that Ernie and the statistician were going to play a long game, best out of a 100 or so. What analysis could you to predict what the final score might be? (This is a chance to..

Construct confidence interval for the change in demand : Suppose that the federal government is considering a new tax on cigarettes that is estimated to increase the retail price by $0.50 per pack. If the current price per pack is $7.50, use the regression in column (1) to predict the change in demand. ..

Fully fund the total pension liability : What do you think would be a reason why a government should fully fund the Total Pension Liability (formerly the Actuarial Accrued Liability) of its retirement system? Can you think of a reason why it should not?

What is the yield to maturity for these bonds : Blue Crab, Inc. plans to issue new bonds, but is uncertain how the market would set the yield to maturity. The bonds would be 15-year to maturity, carry a 12.11 percent annual coupon, and have a $1,000 par value. Blue Crab, Inc. has determined that t..

User Account

All Pages