A $10 000, 7.5% bond with quarterly coupons, redeemable at par on October 15, 2028, was purchased

Question:

A $10 000, 7.5% bond with quarterly coupons, redeemable at par on October 15, 2028, was purchased on May 5, 2016, at 98.75. What is the approximate yield rate?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

See More Books

Question Posted: Feb 26, 2016 04:14 AM

See More Questions

A $10 000, 10% bond with quarterly coupons redeemable at par in 15 years is purchased to yield 11% compounded quarterly. Determine the purchase price of the bond.
Three $10 000, 10.5% bonds with quarterly coupons redeemable at par on August 1, 2023, were bought on May 1, 2009, to yield 12% compounded quarterly. The bonds were sold on January 16, 2017, at 93.5....
A $100 000 bond redeemable at par on October 1, 2038, is purchased on January 15, 2017. Interest is 5.9% payable semi-annually and the yield is 9% compounded semi-annually. (a) What is the purchase...
The following information was drawn from the 2016 accounting records of Ozark Merchandisers: 1. Inventory that had cost $21,200 was sold for $39,900 under terms 2/20, net/30. 2. Customers returned...
An analyst is trying to determine whether the prices of certain stocks on the NASDAQ are independent of the industry to which they belong. She examines four industries and classifies the stock prices...
What is the gravitational attraction between the Earth and Venus? ( mEarth = M = 6 . 0 x 1 0 2 4 kg , mVenus = m = 5 . 0 x 1 0 2 4 kg , r = 3 . 8 x 1 0 1 0 m , G = 6 . 6 7 x 1 0 - 1 1 N m 2 / kg 2
An incompressible fluid flows along a $0.20-\mathrm{m}$-diameter pipe with a uniform velocity of $3 \mathrm{~m} / \mathrm{s}$. If the pressure drop between the upstream and downstream sections of...
The Fly-Right Airplane Company builds small jet airplanes to sell to corporations for the use of their executives. To meet the needs of these executives, the companys customers sometimes order a...
How can Managers use Exchange markets and Rates to benefit their firms? Give examples. please do not repeat these examples : 1) Managers can use exchange markets and rates to benefit their firms by...
The Fashion Rack is a retail merchandising business that sells brand-name clothing at discount prices. The firm is owned and managed by Teresa Lojay, who started the business on April 1, 20X1. This...
A $25 000, 9.5% bond with semi-annual coupons redeemable at par is bought 16 years before maturity at 78.25. What was the approximate yield rate?
What is the approximate yield realized if the bond in Question 17 was sold on August 7, 2021, at 92? In Question 17 A $10 000, 7.5% bond with quarterly coupons, redeemable at par on October 15, 2028,...
On March 19, 1997, Jairath, as seller, and Bletnitsky, as buyer, entered into a real estate contract for sale of an apartment building located at 930 Ontario in Oak Park, Illinois, for a price of...
I. Actual Direct labor costs and Actual Direct material costs are written [entered, or put] on A job-order sheet. Estimated, not actual, manufacturing overhead costs are entered on a Job-Order Sheet....
Luxury Auto Care Company offers three different service packages (A, B, and C) to its customers. These packages vary from a complete detailing of the automobile (wash, wax, carpet shampoo, etc.) to a...
2 51 5 The revolving door in the figure below rotates counterclockwise and has four equally spaced panels. (a) What is the angle between two adjacent panels? The angle is Qdegrees. (b) What is the...
Compute operating cash flows using the direct method. Tidwell Company has provided the following partial comparative balance sheets and the income statement for 20X2. Tidwell Company Comparative...
The preliminary annual accounts of X company show a profit before tax of USD 15 000 000. Other operating expenses include USD 200 000 in non-deductible representation expenses and the expensing of...
The blade tip speed of a wind turbine is directly proportional to the rotation rate . For a certain wind turbine, the blade tip speed is 125 mi/h when = 12.0 r/min. Find the blade tip speed when =...
Halley's comet travels in an ellipti- cal orbit with a = 17.95 and b = 4.44 and passes by Earth roughly every 76 years. Note that each unit represents one astronomical unit, or 93 million miles. The...
Some birds tend to avoid flights over large bodies of water during daylight hours. Suppose that an adult bird with this tendency is taken from its nesting area on the edge of a large lake to an...
Two heavily industrial areas are located 10 miles apart, as shown in the figure. if the concentration of particulate matter (in parts per million) decreases as the reciprocal of the square of the...
A large grocery chain found that, on average, a checker can recall P% of a given price list x hours after starting work, as given approximately by P(x) = 96x - 24x2 0 x 3 At what time x does the...
entory LO P1 Compute ending work in process inventory for a manufacturer using the following information. Raw materials purchased Direct materials used Direct labor used Factory overhead Work in...
Four departments of a company need to order the following amounts of the same products. (a) Use matrix multiplication to get a matrix showing the comparative costs for each department for the...
The trial balance columns of the worksheet for Cullumber Company at June 30, 2027, are as follows. Cullumber Company Worksheet For the Month Ended June 30, 2027 Trial Balance Account Titles Dr. Cr....

A $10 000, 7.5% bond with quarterly coupons, redeemable at par on October 15, 2028, was purchased

Question:

Step by Step Answer:

Quoted price 10 0000009875 987500 Principal 10 00000 Average bo...View the full answer

Contemporary Business Mathematics with Canadian Applications

Students also viewed these Finance questions