Bibb Falk recently purchased a bond with a $1,000 face value, a 10% coupon rate, and four
Question:
a. What is the bond's yield-to-maturity?
b. If the bond can be called two years from now at a price of $1,100, what is its yield-to-call?
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 85% (14 reviews)
a A bonds yieldtomaturity is that interest rate that equates ...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Fundamentals of Investments
ISBN: 978-0132926171
3rd edition
Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey
Question Posted:
Related Video
The yield to maturity (YTM) is the percentage rate of return for a bond assuming that the investor holds the asset until its maturity date. This video will give a complete tutorial on how to calculate Yield to Maturity on Microsoft Excel
Students also viewed these Accounting questions
-
Armstrong Corp. purchased a bond with a maturity value of Si 0,000 payable in five years. These bonds have a 6% coupon rate payable annually. Armstrong paid $10,890 for these bonds, giving a yield of...
-
DG acquired 500,000 shares in HJ, a listed entity, for $3.50 per share on 28 May 2009. The costs associated with the purchase were $15 000 and were included in the cost of the investment. The...
-
Two years ago your corporate treasurer purchased for the firm a 20-year bond at its par value of $1,000. The coupon rate on this security is 8 percent. Interest payments are made to bondholders once...
-
Listed below are measured amounts of caffeine (mg per 12 oz of drink) obtained in one can from each of 20 brands (7-UP, A&W Root Beer, Cherry Coke, . . . , Tab). Are the statistics representative of...
-
Discuss the speed of airfreight transportation in terms of its line-haul and accessorial service.
-
escribe how the three-dimensional structure of an enzyme determines its specificity and catalytic mechanism. How do techniques like X-ray crystallography and cryo-electron microscopy contribute to...
-
An engineer in charge of the design of a plant must choose either a batch or a continuous system. The batch system offers a lower initial outlay but, owing to high labor requirements, exhibits a...
-
Although buried by mass customization and a proliferation of new products of numerous sizes and variations, grocery chains continue to seek to maximize payoff from their layout. Their layout includes...
-
Write a Javascript program to display the list of Student names whose name starts with 'A' For example, you have an array of students names Khadija Ali ahmed List of name starts with alphabet 'A' or...
-
Snow Corporation acquired all of the outstanding $10 par voting common stock of Lannister, Inc., on January 1, Year 2, in exchange for 50,000 shares of its $10 par voting common stock. On December...
-
Bond i4's yield-to-maturity is 9.80%; bond 's yield-to-maturity is 8.73%. What is the difference in yields stated in basis points?
-
Burleigh Grimes purchased at par a bond with a face value of $1,000.The bond had five years to maturity and a 10% coupon rate. The bond was called two years later for a price of $1,200, after making...
-
Internet Magazine monitors Internet service providers (ISPs) and provides statistics on their performance. The average time to download a Web page for free ISPs is approximately 20 seconds for...
-
Imagine that the spouse of a coworker recently died from an infectious disease. Write the coworker a letter of sympathy.
-
Unfortunately, we cannot contribute to your worthy charitable cause this year. At present we need all the funds of our organization to lease new equipment and offices for our new branch in...
-
Microtargeting is a controversial persuasive technique. Advertisers are trying to sweet-talk Internet users into allowing them to harvest their location information, browser history, and other...
-
The following message responds to the inquiry in Activity 6.2. Dr. Woo asks for information about dealing with a data breach at his medical office. Mr. Gallagher, representing Safe Cybernetics, wants...
-
Naomi Emery, a hardworking auto damage adjuster, has sent an e-mail request asking that her employer create a program to reimburse the tuition and book expenses for employees taking college courses....
-
A smell of sulphur (S) can be caused either by rotten eggs (E) or as a sign of the doom brought by the Mayan Apocalypse (M). The Mayan Apocalypse also causes the oceans to boil (B). The Bayesian...
-
Propose a reasonable mechanism for the following reaction. OH
-
Xytex Products just paid a dividend of $1.62 per share, and the stock currently sells for $28. If the discount rate is 10 percent, what is the dividend growth rate?
-
You are given the following information concerning two stocks that make up an index. What is the price-weighted return for the index? Price per Share Shares Beginning of Year End of Year Outstanding...
-
In Problem 14, suppose that Douglas McDonnell shareholders approve a 3-for-1 stock split on January 1, 2017. What is the new divisor for the index? Calculate the rate of return on the index for the...
-
Describe, in steps, at least one strategy used to attack embedded operating systems. Describe, in steps, at least one strategy used to defend against the chosen attack.
-
how does a hypercompetetice environment challenge those in an industry
-
Describe how managers can reduce unnecessary costs, including real - world examples of how it has been done
Study smarter with the SolutionInn App