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The 6 percent annual coupon bonds of Greentree Inc are selling for 1020 have a face value of 1000 and have a yield to maturity of 5.43 percent How many years will it be until these bonds matu?
Wiki User
∙ 11y ago
4 years
Wiki User
∙ 11y ago
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Distinguish between current yield an yield to maturity of a fixed income security how are these yields calculated?
Current yield is equal to the annual interest payment divided by the market price. It is the actual yield an investor will receive (instead of what is stated). For example, if a bond has a stated rate of 5 percent, but is selling below par, the investor would receive more than a 5 percent return. If the bond is selling above par, the current yield is actually less than 5 percent. Yield to maturity is the total return an investor will receive if the security is held until the maturity date, which is all of the annual interest payments and the difference between the original price and the principal you will receive at maturity. This formula is much more complicated but there are websites that will do it for you. Try moneychimp.com which has a calculator for the current yield and YTM.
When a firm makes annual deposits to repay bondholders at maturity it is using a?
When a firm makes annual deposits to repay bondholders at maturity, it is using a
What are the three adjustments that have to be made in going from annual to semi annual bond analysis?
There are three adjustments that have to be made in going from annual to semi-annual bond analysis. These three adjustments are to divide the annual interest rate by two, multiply the number of years by two, and divide the annual yield to maturity by two.
What are the 3 adjustments that have to be made in going from annual to semiannual bond?
1) divide the annual interest rate by 2 2) multiply the number of years by 2 3) divide the annual yield to maturity by 2
The top 7 percent of wage earners in America annual income?
120,000
Distinguish between current yield an yield to maturity of a fixed income security how are these yields calculated?
Current yield is equal to the annual interest payment divided by the market price. It is the actual yield an investor will receive (instead of what is stated). For example, if a bond has a stated rate of 5 percent, but is selling below par, the investor would receive more than a 5 percent return. If the bond is selling above par, the current yield is actually less than 5 percent. Yield to maturity is the total return an investor will receive if the security is held until the maturity date, which is all of the annual interest payments and the difference between the original price and the principal you will receive at maturity. This formula is much more complicated but there are websites that will do it for you. Try moneychimp.com which has a calculator for the current yield and YTM.
How do you calculate a bond value that has a ten-year maturity a 12 percent coupon rate with annual payments and a 1000 par value?
You would need to know a Yield To Maturity to answer this question.
When a firm makes annual deposits to repay bondholders at maturity it is using a?
When a firm makes annual deposits to repay bondholders at maturity, it is using a
What is the rate of return for an investor who pays 1054.47 for a 3-yr bond with a 7 percent coupon and sells the bond one year later for 1037.19?
What is the cash conversion cycle for a firm with $3 million average inventories, $1.5 million average accounts payable, a receivables period of 40 days, and an annual cost of goods sold of $18 million.
What percent of your annual income is safe to spend on health related insurance?
what percent of your annual income is safe to spend on health related insurance?
What are the three adjustments that have to be made in going from annual to semi annual bond analysis?
There are three adjustments that have to be made in going from annual to semi-annual bond analysis. These three adjustments are to divide the annual interest rate by two, multiply the number of years by two, and divide the annual yield to maturity by two.
What are the 3 adjustments that have to be made in going from annual to semiannual bond?
1) divide the annual interest rate by 2 2) multiply the number of years by 2 3) divide the annual yield to maturity by 2
What is the effective annual rate of 14.9 percent compounded continuously?
It is 14.9 percent.
Investing 450.00 at 3.5 percent annual interest or 400.00 at 4.5 percent annual interest What is the difference in the amount of interest that could be earned?
2.25
Earl's 1000 bond earns 6.2 percent in annual interest What is the annual interest?
62
Bens 1000 bond earns 7.5 percent in annual interest What is the annual interest?
75
What is the effective annual rate of 8 percent interest that is compounded monthly?
0.67 percent
