Question

Fitzgerald's 35​-year bonds pay 7 percent interest annually on a ​$1,000 par value. If the bonds...

Fitzgerald's 35​-year bonds pay 7 percent interest annually on a ​$1,000 par value. If the bonds sell at $945​, what is the​ bond's yield to​ maturity? What would be the yield to maturity if the bonds paid interest​ semiannually? Explain the difference.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Difference is 0.01% due to number of Compounding per year

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
​Fitzgerald's 35​-year bonds pay 11 percent interest annually on a ​$1,000 par value. If the bonds...
​Fitzgerald's 35​-year bonds pay 11 percent interest annually on a ​$1,000 par value. If the bonds sell at $875​, what is the​bond's yield to​ maturity? What would be the yield to maturity if the bonds paid interest​ semiannually? Explain the difference. a. The​ bond's yield to maturity if the bond pays interest annually is __​%. The bonds yield to maturity if the bond pays interest semiannaually is __
 ​Fitzgerald's 25​-year bonds pay 8 percent interest annually on a $1,000 par value. If the bonds...
 ​Fitzgerald's 25​-year bonds pay 8 percent interest annually on a $1,000 par value. If the bonds sell at $935​, what is the​ bond's yield to​ maturity? What would be the yield to maturity if the bonds paid interest​ semiannually? 1.The​ bond's yield to maturity if the bond pays interest annually is? 2. The​ bond's yield to maturity if the bond paid interest semiannually would be?
Fitzgerald's 25​-year bonds pay 11 percent interest annually on a ​$1,000 par value. If the bonds...
Fitzgerald's 25​-year bonds pay 11 percent interest annually on a ​$1,000 par value. If the bonds sell at $895: What is the​ bond's yield to​ maturity? What would be the yield to maturity if the bonds paid interest​ semi-annually? Explain the difference.
Yield to​ maturity)  ​Fitzgerald's 25​-year bonds pay 6 percent interest annually on a ​$1 comma 000...
Yield to​ maturity)  ​Fitzgerald's 25​-year bonds pay 6 percent interest annually on a ​$1 comma 000 par value. If the bonds sell at $ 845​, what is the​ bond's yield to​ maturity? What would be the yield to maturity if the bonds paid interest​ semiannually? Explain the difference. a. The​ bond's yield to maturity if the bond pays interest annually is ​(Round to three decimal​ places.) b.  The​ bond's yield to maturity if the bond paid interest semiannually would be...
The 14​-year, ​$1,000 par value bonds of Waco Industries pay 9 percent interest annually. The market...
The 14​-year, ​$1,000 par value bonds of Waco Industries pay 9 percent interest annually. The market price of the bond is ​$1,065​, and the​ market's required yield to maturity on a​ comparable-risk bond is 7 percent. a.  Compute the​ bond's yield to maturity. b.  Determine the value of the bond to you given the​ market's required yield to maturity on a​ comparable-risk bond. c.  Should you purchase the​ bond? a.  What is your yield to maturity on the Waco bonds...
  ​Fingen's 14​-year, ​$1,000 par value bonds pay 9 percent interest annually. The market price of the...
  ​Fingen's 14​-year, ​$1,000 par value bonds pay 9 percent interest annually. The market price of the bonds is ​$1,100 and the​ market's required yield to maturity on a​ comparable-risk bond is 10 percent. a.  Compute the​ bond's yield to maturity. b.  Determine the value of the bond to​ you, given your required rate of return. c.  Should you purchase the​ bond?
 Fingen's 14​-year, ​$1,000 par value bonds pay 14 percent interest annually. The market price of the...
 Fingen's 14​-year, ​$1,000 par value bonds pay 14 percent interest annually. The market price of the bonds is $1,110 and the​ market's required yield to maturity on a​ comparable-risk bond is 11 percent. a.  Compute the​ bond's yield to maturity. b.  Determine the value of the bond to​ you, given your required rate of return. c.  Should you purchase the​ bond?
 ​Fingen's 15​-year, ​$1,000 par value bonds pay 11 percent interest annually. The market price of the...
 ​Fingen's 15​-year, ​$1,000 par value bonds pay 11 percent interest annually. The market price of the bonds is ​$1,070 and the​ market's required yield to maturity on a​ comparable-risk bond is 12 percent. a.  Compute the​ bond's yield to maturity. b.  Determine the value of the bond to​ you, given your required rate of return. c.  Should you purchase the​ bond?
Fingen's 16​-year, ​$1,000 par value bonds pay 13 percent interest annually. The market price of the...
Fingen's 16​-year, ​$1,000 par value bonds pay 13 percent interest annually. The market price of the bonds is ​$1,140 and the​ market's required yield to maturity on a​ comparable-risk bond is 10 percent. a.  Compute the​ bond's yield to maturity. b.  Determine the value of the bond to​ you, given your required rate of return. c.  Should you purchase the​ bond?
(Bond valuation)  ​Fingen's 15 year, $ 1,000 par value bonds pay 12 percent interest annually. The...
(Bond valuation)  ​Fingen's 15 year, $ 1,000 par value bonds pay 12 percent interest annually. The market price of the bonds is $ 1,110 and the​ market's required yield to maturity on a​ comparable-risk bond is 9 percent. a.  Compute the​ bond's yield to maturity. b.  Determine the value of the bond to​ you, given your required rate of return. c.  Should you purchase the​ bond?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT