the current market price of the bond is $92 per $100 nominal value. the bond will be

Fantastic news! We've Found the answer you've been seeking!

Question:

the current market price of the bond is $92 per $100 nominal value. the bond will be redeemed at $100 nominal value in 4 years time and has a coupon rate of 10%. calculate the yield to maturity on the bond. (Using 5% and 15% discount factors)

Related Book For answer-question

Introduction to Operations Research

ISBN: 978-1259162985

10th edition

Authors: Frederick S. Hillier, Gerald J. Lieberman

See More Books

Posted Date: Feb 03, 2023 04:57 AM

See More Questions

A bond sells for $902.30 and has a coupon rate of 8 percent. If the bond has 16 years until maturity, what is the yield to maturity of the bond?
A 30-year bond making annual payments has a coupon rate of 12%, a duration of 11.54years, and convexity of 192.4. The bond is currently selling at a yield to maturity of 8%. Use the duration-with...
A bond sells for $902.30 and has a coupon rate of 6 percent. If the bond has 12 years until maturity, what is the yield to maturity of the bond?
A manufacturer claims that the average tensile strength of thread A exceeds the average tensile strength of thread B by at least 12 kilograms. To test his claim, 50 pieces of each type of thread are...
Bobs lawn-mowing service is a profit-maximizing, competitive firm. Bob mows lawns for $27 each. His total cost each day is $280, of which $30 is a fixed cost. He mows 10 lawns a day. What can you say...
What five questions typically are used in fact-finding? What other question does the Zachman Framework include? Is the additional question important?
Suppose that an August Call option to buy a share for $\$ 600$ costs $\$60.5$ and is held until August. (a) Under what circumstances will the holder of the option make a profit? (b) Under what...
Under what conditions of bond issuance does a discount on bonds payable arise? Under what conditions of bond issuance does a premium on bonds payable arise?
You have just been hired as a new management accountant by UMW Holdings Berhad. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced...
All cash flows occur at the end of the period. 1. What is the annual interest rate, if $1,000 grows to $1,338 over 5 years? (4) remember to use opposite signs on the payment and present values 2....
Consider the function f(x)=- J-x, if x 1 I -2, if a >1 Then f(0) = f(2) = 0. Your friend claims that by the Mean Value Theorem, f'(c) should be zero for some e in (0,2). (a) Find such a c or show why...
The used-car market has publications that provide information on the quality and prices of used cars. Are similar avenues of information available to health consumers? What kind of information do...
Why is the growth of managed care a relatively recent phenomenon? Describe governmental policies and practices that have encouraged managed care organizations and inhibited them.
Consider a difference-in-difference model of job lock. The research fi nds the following probabilities: (a) Interpret each element of this matrix in terms of the probability of changing jobs. (b)...
Why might information problems lead to consumer preferences for nonprofi t provision of some goods and services? Reconcile your answer with the observation that most physician care, drug products,...
According to the ACA, adults with pre-existing conditions became eligible to join a temporary high-risk pool, which will be superseded by the health care exchange in 2014. To qualify for coverage,...
The MacHardee Plumbing Company has common stock outstanding. The stock paid a dividend of $2.00 per share last year, but the company expects that earnings and dividends will grow by 25% for the next...
Juanita owns a home in Richardson, TX. She purchases a Homeowners Policy (HO-3) from Farm State Ins. Co. The policy provides $100,000 in liability coverage (coverage E) and $5,000 in Med Pay coverage...
The Whitt Window Company, a company with only three employees, makes two different kinds of hand-crafted windows: a wood-framed and an aluminum-framed window. The company earns $300 profit for each...
Consider the following linearly constrained optimization problem: Maximize f(x) = In (x1 + 1) x22, Subject to x1 + 2x2 3 and x1 0, x2 0. where In denotes the natural logarithm, (a) Verify that...
The Aberdeen Development Corporation (ADC) is reconsidering the Aberdeen Resort Hotel project. It would be located on the picturesque banks of Grays Harbor and have its own championship-level golf...
Why is macroeconomic forecasting so difficult? Does this difficulty mean economics is a worthless field of study?
Which of the following statements are positive in nature and which are normative? a. A tax cut will raise interest rates. b. A reduction in the payroll tax would primarily benefit poor and...
Graph the behavior of the civilian unemployment rate from 1961 until the present using monthly data. Can you see the periods of recession that occurred in 19691970, 19731975, 1980, 19811982,...

the current market price of the bond is $92 per $100 nominal value. the bond will be

Question:

Expert Answer:

Using the 5 discount factor PV 92 Coupon Payments 10 Maturity Value 100 YTM 513 Calculations PV ... View the full answer

Introduction to Operations Research

Students also viewed these finance questions