A bond is sold for $1,054.88 currently. The bond has a coupon rate of 6%, paid...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A bond is sold for $1,054.88 currently. The bond has a coupon rate of 6%, paid semi- annually and it matures in 15 years. What is the yield-to-maturity of this bond? Round to the nearest hundredth percent. Do not include a percent sign in your answer. (i.e. If your answer is 4.32%, then type 4.32 without a % sign) A bond is sold for $1,054.88 currently. The bond has a coupon rate of 6%, paid semi- annually and it matures in 15 years. What is the yield-to-maturity of this bond? Round to the nearest hundredth percent. Do not include a percent sign in your answer. (i.e. If your answer is 4.32%, then type 4.32 without a % sign)
Expert Answer:
Answer rating: 100% (QA)
The yieldtomaturity YTM of a bond is the return an investor expects to earn on the bond if it is hel... View the full answer
Related Book For
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
Posted Date:
Students also viewed these finance questions
-
1.Hope Corporation bonds bearing a coupon rate of 12%, pay coupons semiannually, have 3 years remaining to maturity, and are currently priced at $940 per bond. What is the yield to maturity? 2....
-
This section consists of 14 problems for a combined total of 80 points. Points assigned to each problem are duly noted, You must neatly show your work including all relevant formulas and fully...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The controller of Northwest Hardware has just received two forecasts for sales in the Montana District for the coming year. Based on an econometric analysis of consumer spending and economic trends,...
-
Under the direct method of preparing a statement of cash flows, what adjustment is made for gains and losses on the sale of equipment?
-
Describe the evolution from centralized DBMSs to distributed DBMSs.
-
Earnings manipulation has been the subject of considerable attention both in the financial press and in academic research. For example. The Wall Street Journal, Forbes Magazine, and Business Week...
-
Suwon Pharmaceuticals invests heavily in research and development (R&D), although it must currently treat its R&D expenditures as expenses for financial accounting purposes. To encourage investment...
-
What do the examples of Tulip Mania, Beanie Babies, NFTs, etc. tell us about supply and demand and classic economic theory? Explain how this is similar to the Trobriand Islanders and their practice...
-
Ellipses Corp is a small business that operates in Herndon, VA. The company is located at10 Period Lane, Herndon, VA 20170. Its federal Employer Identification Number is 77-7777777, and its...
-
A simple discount bond pays $20,000 in one year. Find the yield to maturity when the price of the bond is i.$18,000 ii. $19,000 iii. $20,000 What happens to the yield to maturity as the price of the...
-
An airplane flies at a standard altitude of 3048 m. The Pitot tube installed in the nose measures 105,336 Pa pressure. The plane is flying at subsonic speeds higher than 483 km per hour. The flow...
-
The pressure, temperature, and velocity at a certain point in the airflow are 101,325 Pa, 46.85 C, and 1000 m/s. Calculate the total temperature and total pressure at that point.
-
If the circuit in Figure P32.8 operates at \(50 \mathrm{~Hz}\) with \(\mathscr{E}_{\max }=120 \mathrm{~V}\) and \(R=15.0 \Omega\), how much energy is dissipated in the resistor in \(1.5 \mathrm{~s}\)...
-
(a) What can you say, at all instants, about \(v_{R}, v_{C}\), and \(v_{L}\) in the parallel circuit of Figure P32.58? (b) Construct a phasor diagram for \(V_{R}, V_{C}, V_{L}\), and \(\mathscr{E}\)...
-
(a) Corresponding to each step in Figure \(32.2(a)-(b)\), draw bar graphs for stored magnetic and electric energies. (b) What should be next time \(t_{2}\) when, again, \(U_{E}=0.5 U_{E, \max }\) ?...
-
For this lab, you will do some work on a GUI program. Most of the work is related to actions, buttons, menus, and toolbars. When you turn in your work for this lab, you should paste the code for your...
-
Identify the source of funds within Micro Credit? How does this differ from traditional sources of financing? What internal and external governance mechanisms are in place in Micro Credit?
-
Using the bond returns in Table 10.1 as a basis of discussion: a. Compare the returns during the 1970s to those produced in the 1980s. How do you explain the differences? b. How did the bond market...
-
A certain bond has a current yield of 6.5% and a market price of $846.15. What is the bonds coupon rate?
-
Brett Daly is an active stock trader and an avid market technician. He got into technical analysis about 10 years ago, and although he now uses the Internet for much of his analytical work, he still...
-
The total amount of time required to complete a schedule is called what?
-
A major advantage of using SPT is the minimization of average flowtime. What is a disadvantage of the use of SPT?
-
What priority sequencing rule is usually used to order customers standing in a line?
Study smarter with the SolutionInn App