Question

In: Finance

Sally Inc has a bond outstanding with a $70 interest payment, a market price of $860,...

Sally Inc has a bond outstanding with a $70 interest payment, a market price of $860, and a maturity date in five years. Par value is $1,000.

what is the approvimate yield to maturity?

Solutions

Expert Solution


Related Solutions

Preston Corporation has a bond outstanding with an annual interest payment of $90, a market price...
Preston Corporation has a bond outstanding with an annual interest payment of $90, a market price of $1,280, and a maturity date in 7 years. Assume the par value of the bond is $1,000. Find the following: (Use the approximation formula to compute the approximate yield to maturity and use the calculator method to compute the exact yield to maturity. Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) A. Coupon rate B....
Preston Corporation has a bond outstanding with an annual interest payment of $100, a market price...
Preston Corporation has a bond outstanding with an annual interest payment of $100, a market price of $1,300, and a maturity date in 6 years. Assume the par value of the bond is $1,000.          Find the following: (Use the approximation formula to compute the approximate yield to maturity and use the calculator method to compute the exact yield to maturity. Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)    Coupon Rate...
Preston Corporation has a bond outstanding with an annual interest payment of $110, a market price...
Preston Corporation has a bond outstanding with an annual interest payment of $110, a market price of $1,320, and a maturity date in 8 years. Assume the par value of the bond is $1,000. Find the following: (Use the approximation formula to compute the approximate yield to maturity and use the calculator method to compute the exact yield to maturity. Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) a. Coupon rate b....
The Pioneer Petroleum Corporation has a bond outstanding with an $60 annual interest payment, a market...
The Pioneer Petroleum Corporation has a bond outstanding with an $60 annual interest payment, a market price of $880, and a maturity date in eight years. Assume the par value of the bond is $1,000. Find the following: (Use the approximation formula to compute the approximate yield to maturity and use a calculator or Excel to compute the exact yield to maturity. Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) a. Coupon...
The Pioneer Petroleum Corporation has a bond outstanding with an $90 annual interest payment, a market...
The Pioneer Petroleum Corporation has a bond outstanding with an $90 annual interest payment, a market price of $910, and a maturity date in five years. Assume the par value of the bond is $1,000.        Find the following: (Use the approximation formula to compute the approximate yield to maturity and use the calculator method to compute the exact yield to maturity. Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) a. Coupon...
A 10-year annual payment corporate bond has a market price of $1,050. It pays annual interest...
A 10-year annual payment corporate bond has a market price of $1,050. It pays annual interest of $100 and its required rate of return is 9 percent. Is the bond fairly priced, underpriced, or overpriced? Also find the magnitude of the mispricing (if any).
Riverhawk Corporation has a bond outstanding with a market price of $1,200.00. The bond has 10...
Riverhawk Corporation has a bond outstanding with a market price of $1,200.00. The bond has 10 years to maturity, pays interest semiannually, and has a yield to maturity of 9%. What is the bond’s coupon rate? A. 12.84% B. 12.08% C. 13.61% D. 11.31% E. 9.77% F. 10.54%
A bond that pays interest semiannually has a price of $1,043.47 and a semiannual coupon payment...
A bond that pays interest semiannually has a price of $1,043.47 and a semiannual coupon payment of $27.00. If the par value is $1,000, what is the current yield? Pick one: A.4.92% B. 2.59% C. 5.18% D. 2.70% E. 5.40%
Toreal Metals, Inc. has a bond outstanding that has a $1,000 par value and a market...
Toreal Metals, Inc. has a bond outstanding that has a $1,000 par value and a market price of $1,000. The bond has 10 years remaining to maturity. Assuming an annual market interest rate of 12% and that the bond pays interest semiannually, what is the ANNUAL coupon rate on the bond?
(Bond price) Jump Inc has a level-coupon bond outstanding that pays 12% coupon rate and has...
(Bond price) Jump Inc has a level-coupon bond outstanding that pays 12% coupon rate and has 10 years to maturity. The face value of the bond is $1000. If the yield to maturity for similar bonds is currently 14% a. What is the bond’s current market value if the bond pays coupons annually? b. What is the bond’s current market value if the bond pays coupons semi-annually? c. What is the bond’s current market value if the bond pays 14%...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT