What is the current yield for a $1,000 par value bond that pays interest semiannually, has 9
Question:
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (9 reviews)
Current yield Annual interest ...View the full answer
Answered By
Nyron Beeput
I am an active educator and professional tutor with substantial experience in Biology and General Science. The past two years I have been tutoring online intensively with high school and college students. I have been teaching for four years and this experience has helped me to hone skills such as patience, dedication and flexibility. I work at the pace of my students and ensure that they understand.
My method of using real life examples that my students can relate to has helped them grasp concepts more readily. I also help students learn how to apply their knowledge and they appreciate that very much.
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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 Corporate Finance questions
-
What is the current yield for a bond? How are bond prices quoted? How are bonds rated, and why?
-
A bond that pays interest semiannually has a coupon rate of 5.17 percent and a current yield of 5.49 percent. The par value is $1,000. What is the bond's price? $926.02 $1,061.90 $941.71 $970.86...
-
A bond that pays interest semiannually has a coupon rate of 5.17 percent and a current yield of 5.49 percent. The par value is $1,000. What is the bond's price? $926.02 $1,061.90 $941.71 $970.86...
-
Modesto Trading Berhad has recently appointed Messrs. Suresh Kumar & Co., Chartered Accountants, to audit the companys financial statements for the year ended 30 June 2021. You are assigned by...
-
According to the U.S. Census Bureau, in July 2006 the United States exported aircraft worth $1 billion to China and imported aircraft worth only $19,000 from China. During the same month, however,...
-
In an experiment to determine the relation between the load x on a spring and the length y of the spring, the following data were found. Find the regression line that expresses y as a function of x....
-
Consider the following two alternatives for the installation of a pump: The effective annual interest rate is \(10 \%\). Determine the salvage value for pump A when the two pumps are competitive....
-
Tides Tea Company began operations on January 1, 2015. During the first year of business, the company had the following transactions: January 18: The owners invested $ 200,000 (the par value of the...
-
Lauridsen Design Inc. (LDI) is an architectural and design firm located in Calgary, Alberta. LDI has an information technology services group (IT Services) and a finance and accounting services group...
-
A drunk starts out from a lamppost in the middle of a street, taking steps of equal length either to the right or to the left with equal probability. What is the probability that the man will again...
-
An investor is considering the purchase of a $1,000 par value bond with an 8% coupon rate (with interest paid semiannually) that matures in 5 years. If the bond is priced to yield 6%, what is the...
-
An investor is considering the purchase of an 8%, 18-year corporate bond thats being priced to yield 10%. She thinks that in a year, this bond will be priced in the market to yield 9%. Using annual...
-
This chapter presented the solutions for two use cases for RMO Look up item availability and Process new order. Design three layer solutions for two more use cases, Create new order and Record order...
-
Janet Smith transferred, in trust, $500,000 of Georgia Power Bonds to her younger sister, Bertha Jones. These bonds pay interest quarterly, and Janet reserved the income for her life. Janet was age...
-
John and Mary Larsson purchased a joint and survivorship annuity from the Life and Death Insurance Co. John paid for the annuity and died 11 years later, at which time Marys survivorship interest had...
-
On May 20, 1979, decedents husband, Hugh P. Hughes, executed a will which contained the following paragraph: Third: I give, devise and bequeath the 300-acre farm which I own near Macon, Georgia, to...
-
Diane Parker acquired an interest in a movie theater in June 2007. The theater broke even from 2007 to 2014. Parker did not actively participate in the activity during those years. She participated...
-
Jane Jaffe dies on October 12, 2019. On the date of death, Jane has a bank account that pays interest on a quarterly basis. On December 31, 2019, $3,000 ofi nterest income is credited to the bank...
-
As a bill proceeds through Congress, various committee reports are generated. What three committee reports typically are generated as a result of this process?
-
Orange juice producers are dismayed and puzzled. An economist told them that the reason the demand for orange juice fell is that a new technology allow tomato producers to pick ripe tomatoes more...
-
On the futures' screen, use OSA to load the currency futures' options contracts. Using OSA, generate profit graphs for the following positions: a. Long position in the futures and futures put b....
-
In the chapter, we used Rosengarten Corporation to demonstrate how to calculate EFN. The ROE for Rosengarten is about 7.3 percent, and the plowback ratio is about 67 percent. If you calculate the...
-
Consider the ratio EBITD/Assets. What does this ratio tell us? Way might it be more useful than ROA in comparing two companies?
-
A 15 year annuity pays $1,500 per month, and payments are made at the end of each month. If the interest rate is 13 percent compounded monthly for the first saven years, and 9 percent compounded...
-
make a scenario for each of the following Gesture communication Facial expression communication Oral communication Written communication discuss briefly each scenario
-
Problem 7-30 Holding Period Yield (LO2) The YTM on a bond is the interest rate you earn on your investment if interest rates don't change. If you actually sell the bond before it matures, your...
-
According to theknot.com, online dating is the most common way people meet their spouses today. This claim was based on a survey of 1,400 randomly selected recently married couples, with 266...
Study smarter with the SolutionInn App