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 47 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
YES! Correct, THANKS for helping me on my review

sarah_brady415

  • Member
  • Posts: 328
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

Your heart beats over 36 million times a year.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

The use of bacteria to make human insulin The use of bacteria to make human insulin
Using the Ti plasmid and Agrobacterium tumefaciens to make transgenic plants Using the Ti plasmid and Agrobacterium tumefaciens to make transgenic plants
Compared with modern humans, Homo erectus has a larger face, lacks a chin and canine fossa, and has Compared with modern humans, Homo erectus has a larger face, lacks a chin and canine fossa, and has
Add 5 more to make 9 Add 5 more to make 9
Steps in protein synthesis: The DNA is used as a template to make mRNA (transcription). The mRNA is ... Steps in protein synthesis: The DNA is used as a template to make mRNA (transcription). The mRNA is ...
Apply forearm to the deep fascia of the back. Stand to one side of the face cradle; use the proximal ... Apply forearm to the deep fascia of the back. Stand to one side of the face cradle; use the proximal ...
Video: Egg and Sperm Formations in Animals Animation

For a complete list of videos, visit our video library