This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Rogue Outfitters Inc. has outstanding 1,000 face value 8 coupon bonds that make semiannual payments, ... (Read 20 times)

Capo

  • Hero Member
  • *****
  • Posts: 545
on: Jul 10, 2018
Rogue Outfitters Inc. has outstanding 1,000 face value 8 coupon bonds that make semiannual payments, and have 14 years remaining to maturity. If the current price for these bonds is 987.24, what is the annualized yield to maturity?
 
  A) 8.00
  B) 8.38
  C) 8.15
  D) 8.64

Question 2

Rogue Outfitters Inc. has outstanding 1,000 face value 4 coupon bonds that make semiannual payments, and have 10 years remaining to maturity. If the current price for these bonds is 938.57, what is the annualized yield to maturity?
 
  A) 4.78
  B) 4.96
  C) 5.02
  D) 5.13


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

princessflame2016

  • Sr. Member
  • ****
  • Posts: 298
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: C
Explanation: C) The answer is found through an iterative (trial and error) process using the bond pricing formula.
Bond Price = PMT  + ;
987.24 = 40  + ;
r = 4.077260
YTM = 4.077260  2 = 8.15.
MODE = END, P/Y = 2, C/Y = 2
INPUT 28 ? -987.24 40 1,000
KEY N I/Y PV PMT FV
CPT 8.15

Answer to Question 2

Answer: A
Explanation: A) The answer is found through an iterative (trial and error) process using the bond pricing formula.
Bond Price = PMT  + ;
MODE = END, P/Y = 2, C/Y = 2
INPUT 20 ? -938.57 20 1,000
KEY N I/Y PV PMT FV
CPT 4.78


Capo

  • Member
  • Posts: 545
Reply 2 on: Jul 10, 2018
Wow, this really help

momolu

  • Member
  • Posts: 320
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Covalent bonds form by the sharing of electrons Covalent bonds form by the sharing of electrons
Chimpanzees live in complex kin groups in which lifelong bonds and individual personalities play key Chimpanzees live in complex kin groups in which lifelong bonds and individual personalities play key
The frontal sinus, an airfilled space just behind the brow, is a unique size and shape in each of us The frontal sinus, an airfilled space just behind the brow, is a unique size and shape in each of us
Face cradle adjustment for comfort of receiver. Face cradle adjustment for comfort of receiver.
How to calculate monthly payments at varying amortization periods (Question 3) How to calculate monthly payments at varying amortization periods (Question 3)
An Inhaler with a Face Mask An Inhaler with a Face Mask
Video: What is an ecosystem?

For a complete list of videos, visit our video library