Yield to maturity on a comparable-risk bond

Assignment Help Finance Basics
Reference no: EM132097139

The Saleemi Corporation's $1000 bonds pay 7 percent interest annually and have 9 years until maturity. You can purchase the bond for $1055. What is the yield to maturity on this bond? Should you purchase the bond if the yield to maturity on a comparable-risk bond is 8 percent?

Reference no: EM132097139

Questions Cloud

What is the merger gain : A's value is 100. b's value is 70. and the merger of B by A creates a present value cost saving of 20. assume A pays 75 for B. What is the merger Gain?
Comparing financial ratios : Can you please help explain to me if Amazon outperform Apple based on financial ratios? Does amazon seem to lag anywhere?
Which statement regarding project selection is best : PJM 6500 : A wedding planner allows $10,000 for flowers and three weeks to receive all RSVPs back from the list of 700 guests.
What is the bond ytm : 1. A bond has an annual coupon rate of 4%, a face value of $1,000, a price of $1,000, and matures in 10 years. What is the bond's YTM?
Yield to maturity on a comparable-risk bond : What is the yield to maturity on this bond? Should you purchase the bond if the yield to maturity on a comparable-risk bond is 8 percent?
Determining the required rate of return of fingen : Fingen's 17-year, $1000 par value bonds pay 9 percent interest annually. The market price of the bonds is $920 and the market's required yield to maturity
What is the bond yield to maturity : The market price for $850 for a 10-year bond ($1000 par value) that pays 12 percent annual interest, but makes interest payments on a semiannual basis
Value of this bond if it paid interest annually : What would be the value of this bond if it paid interest annually? What about semiannually?
What would it mean if a stock had a beta of 1 : The market risk of a stock can be defined as the tendency for a stock to be correlated with, and move along with the general stock market.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the total manufacturing cost assigned

Mickley Company's predetermined overhead rate is $19.00 per direct labor-hour and its direct labor wage rate is $10.00 per hour. The following information

  Calculate the effective annual yield

Hacker Software has 6.2 percent coupon bonds on the market with 9 years to maturity. The bonds make semi-annual payments and currently sell for 105 percent of par. What is the current yield on the bonds? Calculate the YTM. Calculate the effective ann..

  Calculate the firm net income

Garden Pro Corporation has sales of $4,574,480; income tax of $432,273; the selling, general and administrative expenses of $209,908; depreciation of $305,753; cost of goods sold of $2,633,980; and interest expense of $155,452. Calculate the firm'..

  What is the standard deviation of your return

The returns on your portfolio over the last 5 years were -5%, 20%, 0%, 10% and 5%. What is the standard deviation of your return?

  What is the value of equity using the fcfe approach

Firm B has net income of 500, CAPEX of 200, depreciation of 150, and working capital of 50. All are expected to grow at 3% and the firm is in stable growth.

  Calculate the ratios given for disney

[Ratio calculations; CFA.C, adapted] Calculate the ratios below for Disney at September 30. 2000 (use ending balance sheet amounts).

  Problem regarding the arbitrage opportunity

If Company B's stock price is currently $360 and its intrinsic value is $390, what should you do as an investor? A) Do nothing because there is no arbitrage opportunity here

  What is the current value of a share of common stock

Assume the investor has a required rate of return of 15 percent and expects to sell the security in 5 years for $72.

  Regular deposits into a brokerage account

You are saving money for your first house. Your plan to make regular deposits into a brokerage account that you expect will earn 10% annually. You will make three deposits of $5,000 each, with the first deposit being made today. How much money wil..

  What was barbell net cash flow

Barbell Corporation's income statment reports that the company's "bottom line" was $180,000 in 2008. The Statement also shows that the company had depreciation and amortization expenses equal to $50,000 and taxes equal to $120,000. What was Barbel..

  What are the internal and sustainable growth rates

Internal and Sustainable Growth Rates. Best Buy reported the following numbers (in millions) for the years ending February 1, 2014, and January 31, 2015.

  If the stock currently sells for 60 what is your best

if the stock currently sells for 60 what is your best estimate of the companys cost of equity capital using the

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