Yield to maturity and yield to call on bond

Assignment Help Financial Management
Reference no: EM131556260

A bond that settles on June 7, 2013, matures on July 1, 2033, and may be called at any time after July 1, 2023, at a price of 114. The coupon rate on the bond is 5.4 percent and the price is 128.50. What is the yield to maturity and yield to call on this bond?

Reference no: EM131556260

Questions Cloud

What is the real rate of return for this machine : A corporation is considering purchasing a vertical drill machine. What is the real (inflation-free) rate of return for this machine?
Sustainable and internal growth rates for firm : Find the sustainable and internal growth rates for a firm with the following ratios:
What must be expected annual cash flow : It has been determined that using a discount rate of 14.7 percent, its net present value is $122,143. What must be the expected annual cash flow?
Project is expected to create operating cash flows : A project is expected to create operating cash flows of $36,842 a year. What is the project's net present value if the required rate of return is 10.8 percent?
Yield to maturity and yield to call on bond : What is the yield to maturity and yield to call on this bond?
Expected increase of housing prices : How will the fluctuation of mortgage rates and the expected increase of housing prices affect a decision to buy a house?
Explain the requirements for moral judgments : Explain the differences between the two approaches: Utilitarian and Libertarian - Explain and comments on three points only.
How and where major theories of ethics appear in the bible : This is a course in Christian ethics, which ultimately means that the perspective of the course arises out of a Christian worldview.
How did you connect with the movie on a personal level : How did you connect with the movie on a personal level? How did it confirm or challenge some of your perceptions of cultural issues in counseling strategies

Reviews

Write a Review

Financial Management Questions & Answers

  Normally leads to a decrease in its business risk

As a firm increases the operating leverage used to produce a given quantity of output, this normally leads to an increase in its fixed assets turnover ratio. normally leads to a decrease in its business risk.

  What is the firms operating cash flow

An all-equity firm has net income of $28,300, depreciation of $7,500, and taxes of $2,050. What is the firm's operating cash flow?

  Estimated salvage value at the time is expected

A company has decided to purchase new office furniture with a useful life of 12 years for $100,000. Sales tax for the furniture was $6,000, and inbound transportation costs were $4,000. Its estimated salvage value at the time is expected to be $5,000..

  Considering new project to produce solar water heaters

Hula Enterprises is considering a new project to produce solar water heaters. the debt capacity is 50 cents for every dollar of asset value.

  Calculate the after tax cost of the call premium

Calculate the tax savings that are expected from the unamortized portion or the old bonds' flotation cost.- Calculate the after-tax cost of the call premium that is required to retire the old bonds.

  Present value of the entire underwriting compensation

In its negotiations with its investment bankers, Patton Electronics has reached an agreement whereby the investment bankers receive a smaller fee now (6% of gross proceeds versus their normal 10%) but also receive a 1-year option to purchase an addit..

  What is the yield to call of the bond

A 7.25 percent coupon bond with 25 years left to maturity can be called in five years. The call premium is one year of coupon payments. It is offered for sale at $1,066.24. What is the yield to call of the bond? (Assume that interest payments are pai..

  What is the value of the current assets

Mellott Corp. has an equity value of $13,705. Long-term debt is $9,200. Net working capital, other than cash, is $3,740. Fixed assets are $18,380 and current liabilities are $2,030. How much cash does the company have? Cash $ What is the value of the..

  How much would you have to set aside today

You have a payment that is due in 5 years for $50,000. You can earn a 5% safe rate of return on your money. a. How much would you have to set aside today meet this payment in the future? b. If your rate of return is 8%, how much would you have to set..

  Shares of stock outstanding-market capitalization

Apple Inc. has 5.25 billion shares of stock outstanding. the market capitalization of Apple Inc. is

  Chemical producer decides to issue security

A chemical producer decides to issue a security that makes the following payments. If the discount rate is 7% what is the present value?

  Different ways one can mitigate exchange rate risk

Is there really any difference between the different ways one can mitigate exchange rate risk? If so, is one form of exchange rate risk mitigation superior to another? Defend answer

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