What is the current yield of a bond with a price of 85 and a coupon of

Question:

What is the current yield of a bond with a price of £85 and a coupon of £10?

(A) 8.50%

(B) 11.77%

(C) 10.00%

(D) 8.24%

(E) 11.25%

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

Step by Step Answer:

Related Book For book-img-for-question

Portfolio Management In Practice

ISBN: 9780080480084

1st Edition

Authors: Christine Brentani

See More Books

Question Posted: May 23, 2024 02:01 AM

See More Questions

1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...
What is the current yield of a bond with a 8% coupon rate coupon paying interest annually, 5 years until maturity, a face value of $1,000, and a current price of $971?
1. What are the primary business and financial risks of UST Inc.? Evaluate from the viewpoint of debtholders.
Once down to about 15, the worlds only wild flock of whooping cranes now numbers a record 237 birds in its Texas Coastal Bend wintering ground (www.SunHerald.com). The average whooping crane egg...
Sets of spectra are given for two compounds. For each set, (1) Look at each spectrum individually, and list the structural characteristics you can determine from that spectrum. (2) Look at the set of...
Suppose you are applying the residual income valuation model to value a firm with extremely conservative accounting. Suppose, for example, the firm is following U.S. GAAP or IFRS, but the firm does...
15-2. Cules son las tres funciones bsicas de los intermediarios ?
The Institute of Chartered Accountants in England and Wales (ICAEW) has adopted a code of ethics based on the IFAC Code. In commenting on the principles-based approach used in these codes, the ICAEW...
8. Is there a basic framework for state corporate income tax laws? A. No, each state is completely independent and there is no such framework B. Yes, states are strictly prescribed by the U.S....
What is the annuity factor for a bond with a semi-annual interest rate of 8% and a maturity of eight years? (Assume the bond is priced at par or 100.) (A) 10.63 (B) 9.21 (C) 21.82 (D) 34.58 (E) 30.32
What is one of the disadvantages of the Paasche index? (A) The Paasche index overstates portfolio performance as its weighting is biased towards items showing the smallest price increase (B) The...
Are the limitations on S corporations (one class of stock, etc.) serious restraints that dramatically impede an entrepreneurs options or minor technicalities?
A Ltd. is preparing its cash budget for the period. Sales are expected to be ` 1,00,000 in April 2015, `2,00,000 in May 2015, ` 3,00,000 in June 2015 and ` 1,00,000 in July 2015. Half of all sales...
A Company Operates throughput accounting system. The details of product A per unit are as under: Selling price `40 Material Cost `10 Conversion Cost `15 Time on Bottleneck resources 10 minutes What...
The most recent balance sheet for the Armadillo Dog Biscuit Co. is shown in the following table. The company is about to embark on an advertising campaign that is expected to raise sales from the...
Show that every group G with identity e and such that x * x = e for all x G is abelian.
X Your answer is incorrect. Flounder Consulting Corp. company records revealed the following for the current year: What was the net cash flow from operating activities for the year? $ 0 $ 9 8 0 0...
Assume that interest rate parity holds. The U.S. fiveyear interest rate is 0.08 annualized, and the Mexican fiveyear interest rate is 0.05 annualized. Todays spot rate of the Mexican peso is $0.21....
find the NSP of a whole life insurance.6 with $100,000 Death benefits, for a female aged 105 years, if i=10%? (use Australian life Tables 2005-07) find the NSP of a whole life insurance.6 with...

What is the current yield of a bond with a price of 85 and a coupon of

Question:

Step by Step Answer:

Portfolio Management In Practice

Students also viewed these Business questions