Yield to maturity remains unchanged

Assignment Help Financial Management
Reference no: EM131460667

A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8.00% with interest paid annually. If the current market price is $800, what will be the approximate capital gain of this bond over the next year if its yield to maturity remains unchanged?

Reference no: EM131460667

Questions Cloud

Prepare the unadjusted trial balance : Prepare the Unadjusted Trial Balance. Prepare reversing entries. Prepare the post-closing trial balance for the next accounting period.
What is the probability distribution explain : According to the Bureau of Labor Statistics, it takes an average of 22 weeks for someone over 55 to find a new job, compared with 16 weeks for younger workers.
What is difference in the present value : What is difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?
Determining the population standard deviation : A sample of 50 is used and the population standard deviation is 9. Use the critical value approach to state your conclusion is the sample mean is 72.5.
Yield to maturity remains unchanged : bond over the next year if its yield to maturity remains unchanged
Find the probability that a randomly selected turkey weighs : The weight of turkeys is normally distributed with a mean of 22 pounds and a standard deviation of 5 pounds.
What is a type i error : For the information in problem 17. What is a Type I error? What are the consequences of a Type I error?
Money will you have on the date of your retirement : How much money will you have on the date of your retirement 35 years from today?
What are the four types of consumer offerings : How do the product-dominant and service-dominant approaches to marketing differ?. What are the four types of consumer offerings?

Reviews

Write a Review

Financial Management Questions & Answers

  Compute the value of share of common stock

Compute the value of a share of common stock of Lexi's Cookie Company whose most recent dividend was $2.50 and is expected to grow at 3 percent per year for the next 5 years, after which the dividend growth rate will increase to 6 percent per year in..

  What is the exact time and what is the interest

Complete the following, using exact interest. (Use table value.) (Use 365 days a year. Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.) What is the exact time? What is the interest?

  Create stock price outside the optimal range

Would a company paying nearly 100% of its Free Cash Flow towards cash distributions (instead of retaining earnings) have any bearing on the likelihood of splitting their stock? That is, if a company uses 100% of its FCF for dividends, would it make i..

  Monetary solutions for the present financial crisis

Review the materials in Chapter 14 of the textbook Money and Banking by Robert E Wright and Vincenzo Quadrini April 2009. Answer these questions: Suggest monetary solutions for the present financial crisis. Discuss if the solutions are always applica..

  What is the break-even salvage value of this project

A project in Malaysia costs $4,200,000. Over the next three years, the project will generate total operating cash flows of $3,800,000, measured in today’s dollars using a required rate of return of 14 percent (this is the PV of the operating cash flo..

  What rate of return would she have earned for the past year

Last year Joan puchased a £100 face value corporate bond with an 13.84 percent annual coupon rate and a 3 year matuiry. At the time of the purchase, it had an expected yield to maturity of 12.21 percent. if joan sold the bond today for £106.18, what ..

  What was your real rate of return based on fisher formula

Last year, you earned 11.67 percent on your investments. During that time period, inflation averaged 6.4 percent. What was your real rate of return based on the Fisher formula?

  Under the loanable funds theory

If the Federal Reserve decided to contract the money supply, under the loanable funds theory,

  Based on the minimum value of the contract

Last month when IBM was selling for $86, Dan purchased a call option on IBM with an exercise price of $90 for $2 per option or $200 total. Yesterday, IBM closed at $95. Based on the minimum value of the contract, if Dan sells his call at yesterday's ..

  Using the ddm what is estimate of the current stock price

Stock X's expected dividend in one year of $3.00 and the dividend is expected to grow at a constant rate of 6%.   The required return is 10%. Using the DDM what is the estimate of the current stock price?

  Calculate keystones return on stockholders equity

Calculate Keystone's return on stockholders' equity. What does a comparison of Keystone to these averages indicate about the firm's strengths and weaknesses?

  Useful in evaluating a companys corporate governance system

Which of the following is least likely to be useful in evaluating a company's corporate governance system for investment analysis purposes?

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