Yield to maturity and future price

Assignment Help Business Management
Reference no: EM131093375

Yield to maturity and future price

A bond has a $1,000 par value, 15 years to maturity, and a 8% annual coupon and sells for $1,080.

  1. What is its yield to maturity (YTM)? Round your answer to two decimal places.
  2. Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

Reference no: EM131093375

Questions Cloud

Yield to maturity at a current market price : Harrimon Industries bonds have 5 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 10%.
Problem regarding the yield to maturity : A firm's bonds have a maturity of 14 years with a $1,000 face value, have an 11% semiannual coupon, are callable in 7 years at $1,241, and currently sell at a price of $1,411.89.
What is rule that forbids an individual from taking spouse : What is the rule that forbids an individual from taking a spouse from within a prescribed local group in which they are both members?
What is the bond price : Nesmith Corporation's outstanding bonds have a $1,000 par value, a 9% semiannual coupon, 11 years to maturity, and an 7.5% YTM. What is the bond's price? Round your answer to the nearest cent.
Yield to maturity and future price : What is its yield to maturity (YTM)? Round your answer to two decimal places.
Bond current market price : Madsen Motors's bonds have 19 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 8%; and the yield to maturity is 6%. What is the bond's current market price? Round your answer to the ..
Journal entries to record : By October 11, 2014, retailers returned CDs toAmodt and were granted credit of $75,000. Prepare Amodt's journal entries to record (a) the sale on July 10, 2014, and (b) $75,000 ofreturns on October 11, 2014.
What is the marginal revenue for the dominant firm : Econ 111 - Principles of Economics - Accelerated Treatment -  Second Midterm Examination - Spring 2013. Consider the following facts for a price leadership oligopoly industry. The aggregate market demand is given by P = 700 - ½Q. What is the marginal..
Fashion-clothing retailers : Look at the financial statements of Ann Inc. (ANN) and The Buckle Inc. (BKE), two fashion-clothing retailers. Compare the inventory level and turnover of each. What might explain the differences you uncover?

Reviews

Write a Review

Business Management Questions & Answers

  Briefly describe google

Briefly describe Google, its mission, and its business model. Analyze the types of people that work at Google, with respect to the business culture of the organization. Indicate one to two (1-2) qualities that define a leader at Google, and determi..

  What janelle created on her website

To create even more interest in the business, Janelle created _________________ on her website. She posted pictures of events, as well as close-ups of the food they served.

  Explain the market arena

Explain the market arena in question is currently dominated by a major competitor with 80 percent of the market share and a number of smaller competitors are each focused on small niche segments

  Explain the flow of information in company

Explain the flow of information in your company. In your journal, explain the following:Functions of Y hierarchy of managerial communications. Does it apply to organization's communication hierarchy?

  Explain what supply challenge would red fish

Explain What supply challenge would Red Fish and Blue Fish face in expanding into South America?

  How to choose the right tools to empower employees

Considering that there is no shortage of empowerment techniques in leadership literature, how might organizations choose empowerment methods that would be most effective for them?

  Describe the five ways to manage conflict

Describe the five ways to manage conflict. Explain your personality type (Myers-Briggs Typology) and then describe what would be the most likely way for you to manage conflict.

  How to movitate a team

Charles Lacy advocates compensating the team for their performance which is good if you have team members who all participate and are productive.

  Explain how the negotiation experience actually happened

Explain how the negotiation experience actually happened and then consider the negotiating techniques

  Explain how a market can be segmented

Explain and provide an example of credence - Explain how a market can be segmented. What are types of segments that a marketing manager could segment a market? Provide an example of segmenting a market for a pet product or service.

  Develop an organizational structure for the product

Develop an organizational structure for the product - Create an operations plan

  How do these websites assistance the company strengthen

How do these websites assistance the company strengthen its relationships with its stakeholders? List the website(s) that you previewed as well as give examples to support your answers

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