Consider a corporate bond with a 10.5% coupon rate, paid semi-annually, $1000 par value and a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider a corporate bond with a 10.5% coupon rate, paid semi-annually, $1000 par value and a current market price of $766.70. It matures in exactly 20 years. What is the yield to maturity (YTM) on this bor O A. 4% ОВ. 4.5% О С. 5% O D. 5.5% O E. 6% O F. 6.5% O G. 7% O H. 7.5% O 1. 8% O J. 8.5% О К. 9% O L. 9.5% О М. 10% O N. 10.5% O 0. 11% O P. 11.5% O Q. 12% O R. 12.5% O S. 13% O T. 13.5% O U. 14% O v. 14.5% Consider a corporate bond with a 10.5% coupon rate, paid semi-annually, $1000 par value and a current market price of $766.70. It matures in exactly 20 years. What is the yield to maturity (YTM) on this bor O A. 4% ОВ. 4.5% О С. 5% O D. 5.5% O E. 6% O F. 6.5% O G. 7% O H. 7.5% O 1. 8% O J. 8.5% О К. 9% O L. 9.5% О М. 10% O N. 10.5% O 0. 11% O P. 11.5% O Q. 12% O R. 12.5% O S. 13% O T. 13.5% O U. 14% O v. 14.5%
Expert Answer:
Answer rating: 100% (QA)
Given that Par Value of Bond 1000 Current Value of Bond 76670 Coupon rate 105 pa Maturity period 20 ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Consider a corporate bond with 10 years until maturity, trading at par (M=100,000), with a semi-annual yield to maturity of 3.5% (the semi-annual coupon rate is also 3.5%). Also consider a Treasury...
-
What is the yield to maturity on a 10-year, 9 percent annual coupon, $1,000 par value bond that sells for $887.00? That sells for $1,134.20? What does the fact that a bond sells at a discount or at a...
-
What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond that sells for $887.00? That sells for $1,134.20? What does a bond selling at a discount or at a premium tell you...
-
1). Cody Jenkins and Lacey Tanner formed a partnership to provide landscaping services. Jenkins and Tanner shared profits and losses equally. After all the tangible assets have been adjusted to...
-
The way that PCR amplifies DNA is similar to the doubling in a population of growing bacteria; a single DNA strand is used to synthesize 2 DNA strands, which become 4, then 8, then 16, etc. If a...
-
A gas is confined to a cylinder under constant atmospheric pressure, as illustrated in Figure 5.4.When the gas undergoes a particular chemical reaction, it absorbs 824 J of heat from its surroundings...
-
The data in Exercise 2.174. Use technology to find the correlation for the data indicated. Data From Exercise 2.174: Make a scatterplot of the data. Put the $X$ variable on the horizontal axis and...
-
You have just met a new client, Darth Garbinsky, who has come to you for some accounting advice. The thing you have to understand, David, is how these stage plays work. You start out with just an...
-
2. All PCs can ping each other in Topology A. All the PCs in Topology B should be able to ping each other. This is the not the case. There are 3 configuration differences in the 2 topologies. Spot...
-
Margie Frump is employed as a teacher. She occasionally purchases items that she uses in the course of her employment that are subject to depreciation. Assets held by Margie at 30 June 2021: Margie...
-
You are tasked with designing a bridge to span a wide river in an earthquake-prone region. The bridge needs to accommodate heavy vehicular traffic and should have a minimum lifespan of 100 years. The...
-
Identify and discuss the environmental impact of intermodal transportation. Discuss the role of ports within intermodal transportation and the importance effective network design has on port...
-
What are some ways outsourcing has positively or negatively impacted your specific organization or industry as a whole? Are there alternatives to outsourcing operations that mirror similar...
-
IT systems are critical to the operations of any company. They are also vulnerable to disruptions and require layers of controls. Explain the multilayered process companies should follow to mitigate...
-
When a company creates a logistics strategy it is defining the service levels at which its logistics organization is at its most cost-effective. Because supply chains are constantly changing and...
-
The present worth of a 4 year project is $150 million. it has an initial cost of $95 million, certain annual saving due to its construction and certain operating costs. it has a salvage value of $44...
-
Illustrate the integration of ISO 14000 with ISO 9000. Define the relationship to Health and Safety in respect of OHSAS 18001. Draw a correlation between the ISO standards for safety, Health,...
-
A company produces earbuds. The revenue from the sale of x units of these earbuds is R = 8x. The cost to produce x units of earbuds is C = 3x + 1500. In what interval will the company at least break...
-
Suppose that at the present time, one can enter 5-year swaps that exchange LIBOR for 8%. An off-market swap would then be defined as a swap of LIBOR for a fixed rate other than 8%. For example, a...
-
A manager buys three shares of stock today, and then sells one of those shares each year for the next 3 years. His actions and the price history of the stock are summarized below. The stock pays no...
-
An insurance company must make payments to a customer of $10 million in 1 year and $4 million in 5 years. The yield curve is flat at 10%. a. If it wants to fully fund and immunize its obligation to...
-
In essence, a liability is a future obligation to pay out money, arising from a past event. A. True. B. False.
-
What is meant by lower of cost and net realizable value? What difficulties exist in the application of this measurement basis?
-
Under IAS 37, a provision is a liability of uncertain timing or amount. A. True. B. False.
Study smarter with the SolutionInn App