# Question: A 20 year Fitzgerald bond pays 9 percent interest annually on

A 20-year Fitzgerald bond pays 9 percent interest annually on a $1,000 par value. If the bond sells at $945, what is the bond’s yield to maturity? What would be the yield to maturity if the bond paid interest semiannually? Explain the difference.

**View Solution:**## Answer to relevant Questions

Doisneau 20-year bonds have a 10 percent annual coupon interest, make interest payments on a semiannual basis, and have a $1,000 par value. If the bonds are trading with a 12 percent market’s required yield to maturity, ...The seven-year $1,000 par bonds of Vail Inc. pay 9 percent interest. The market’s required yield to maturity on a comparable-risk bond is 7 percent. The current market price for the bond is $1,100.a. Determine the yield to ...Stanley, Inc. issues a 15-year $1,000 bond that pays $85 annually. The market price for the bond is $960. The market’s required yield to maturity on a comparable-risk bond is 9 percent.a. What is the value of the bond to ...The common stock of NCP paid $1.32 in dividends last year. Dividends are expected to grow at an 8 percent annual rate for an indefinite number of years.a. If your required rate of return is 10.5 percent, what is the value of ...Assume the following:• The investor’s required rate of return is 15 percent,• The expected level of earnings at the end of this year (E1) is $5.00,• The retention ratio is 50 percent,• The return on equity (ROE) is ...Post your question