Question: Assume you have a bond with a semiannual interest payment
Assume you have a bond with a semiannual interest payment of $ 35, a par value of $ 1,000, and a current market of $ 780. What is the current yield of the bond?
Answer to relevant QuestionsAn 8- year bond for Katy Corporation has a market price of $ 700 and a par value of $ 1,000. If the bond has an annual interest rate of 6 percent, but pays interest semiannually, what is the bond’s yield to maturity? Calculate the value of a bond that will mature in 14 years and has a $ 1,000 face value. The annual coupon interest rate is 5 percent, and the investor’s required rate of return is 7 percent. Why is preferred stock referred to as a hybrid security? It is often said to combine the worst features of common stock and bonds. What is meant by this statement? You intend to purchase Marigo common stock at $ 50 per share, hold it 1 year, and then sell it after a dividend of $ 6 is paid. How much will the stock price have to appreciate for you to satisfy your required rate of return ...Solitron preferred stock is selling for $ 42.16 per share and pays $ 1.95 in dividends. What is your expected rate of return if you purchase the security at the market price?
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