Question: Find the current yield of a 5 65 percent 8 year bond
Find the current yield of a 5.65 percent, 8-year bond that’s currently priced in the market at $853.75. Now, use a financial calculator to find the yield to maturity on this bond (use annual compounding). What’s the current yield and yield to maturity on this bond if it trades at $1,000? If it’s priced at $750? Comment on your findings.
Answer to relevant QuestionsA 25-year, zero coupon bonds was recently quoted at 6.500. Find the current yield and yield to maturity of this issue, given the bond has a par value of $1,000. (Assume annual compounding for the yield to maturity measure.)1. What investment options are open to Elaine?2. What chance does she have of earning a satisfactory return if she invests her $15,000 in?(a) Blue chip stocks(b) Growth stocks(c) Speculative stocks(d) Corporate bonds(e) ...What is a 12(b)-1 fund? Can such a fund operate as a no-load fund?Briefly describe the steps in the mutual fund selection process.What are fund families? What advantages do these families offer investors?
Post your question