Business
Business, 30.10.2019 22:31, mmcdaniels46867

Current yield, capital gains yield, and yield to maturityhooper printing inc. has bonds outstanding with 19 years left to maturity. the bonds have an 7% annual coupon rate and were issued 1 year ago at their par value of $1,000. however, due to changes in interest rates, the bond's market price has fallen to $890.20. the capital gains yield last year was - 10.98%.a. what is the yield to maturity? round your answer to two decimal places. %b. for the coming year, what is the expected current yield? (hint: refer to footnote 7 for the definition of the current yield and to table 7.1.) round your answer to two decimal places. %c. for the coming year, what is the expected capital gains yield? (hint: refer to footnote 7 for the definition of the current yield and to table 7.1.) round your answer to two decimal places. %will the actual realized yields be equal to the expected yields if interest rates change? if not, how will they differ? a. as long as promised coupon payments are made, the current yield will change as a result of changing interest rates. however, changing rates will cause the price to change and as a result, the realized return to investors should equal the ytm. b. as long as promised coupon payments are made, the current yield will change as a result of changing interest rates. however, changing rates will not cause the price to change and as a result, the realized return to investors should equal the ytm. c. as rates change they will cause the end-of-year price to change and thus the realized capital gains yield to change. as a result, the realized return to investors will differ from the ytm. d. as long as promised coupon payments are made, the current yield will change as a result of changing interest rates. however, changing rates will cause the price to change and as a result, the realized return to investors will differ from the ytm. e. as long as promised coupon payments are made, the current yield will not change as a result of changing interest rates. however, changing rates will cause the price to change and as a result, the realized return to investors should equal the ytm.

answer
Answers: 2

Other questions on the subject: Business

image
Business, 22.06.2019 14:20, dieguezisabel
In canada, the reference base period for the cpi is 2002. by 2012, prices had risen by 21.6 percent since the base period. the inflation rate in canada in 2013 was 1.1 percent. calculate the cpi in canada in 2013. hint: use the information that “prices had risen by 21.6 percent since the base period” to find the cpi in 2012. use the inflation rate formula (inflation is the growth rate of the cpi) to find cpi in 2013, knowing the cpi in 2012 and the inflation rate. the cpi in canada in 2013 is round up your answer to the first decimal. 122.9 130.7 119.6 110.5
Answers: 1
image
Business, 22.06.2019 20:00, enriqueliz1680
Beranek corp has $720,000 of assets, and it uses no debt--it is financed only with common equity. the new cfo wants to employ enough debt to raise the debt/assets ratio to 40%, using the proceeds from borrowing to buy back common stock at its book value. how much must the firm borrow to achieve the target debt ratio? a. $273,600b. $288,000c. $302,400d. $317,520e. $333,396
Answers: 3
image
Business, 23.06.2019 01:00, americanbellabeauty
Jimmy's delicatessen sells large tins of tom tucker's toffee. the deli uses a periodic review system, checking inventory levels every 88 days, at which time an order is placed for more tins. order lead time is 22 days. daily demand is a constant 1515 tins, so average demand during the reorder period and order lead time (1010 days) is 150150 tins. draw a sawtooth diagram. assume that the beginning inventory level is equal to the restocking level and the desired service level is 99.9%. what is the safety stock level? (hint: look at the formula for calculating restocking level.) what is the average inventory level? the safety stock level is average inventory level is __chart: time (10,20,30), tins (0,150) lines touching both axisthe safety stock level is 0 tinsthe average inventory level is 75 tins
Answers: 2
image
Business, 23.06.2019 01:30, fanta47
Bruce matthews played football for the tennessee titans. as part of his contract, he agreed to submit any dispute to arbitra- tion. he also agreed that tennessee law would determine all matters related to workers' compensation. after matthews retired, he filed a workers' compensation claim in california. the arbitrator ruled that matthews could pursue his claim in california but only under tennessee law. should this award be set aside?
Answers: 2
Do you know the correct answer?
Current yield, capital gains yield, and yield to maturityhooper printing inc. has bonds outstanding...

Questions in other subjects: