Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. mary wants to invest her recent bonus in an eight-

Mary wants to invest her recent bonus in an eight-year bond that pays a coupon of...

50.1K

Verified Solution

Question

Finance

Mary wants to invest her recent bonus in an eight-year bond thatpays a coupon of 9 percent annually. The bonds areselling at $1,125.46 today. If she buys this bond and holds it tomaturity, what would be her yield?

Answer & Explanation Solved by verified expert
3.8 Ratings (729 Votes)
Basically if the price is give as 112546 at time 0 it isassumed that the par value is 1000 and the yield will be lower thanthe coupon rate The bond    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Mary wants to invest her recent bonus in an eight-year bond thatpays a coupon of 9 percent annually. The bonds areselling at $1,125.46 today. If she buys this bond and holds it tomaturity, what would be her yield?

Other questions asked by students

Q

Linear algebra Thank you. Extra Credit (No partial credit - 1%): It is often useful to perform...

Advance Math
Q

2 Light of wavelength 5000 is incident normally on a plane transmission grating Find the...

Physics
Q

Mr. Kranz wants to buy a new car. He is considering a compact car, full-size...

Basic Math
Q

I am always continuous and have a point of inflection at the origin My range...

Calculus
Q

As on the previous page f x jele T 52 6 4 x d Find...

Calculus
Q

148 6A2B EN A B 3 6A2B 2 0 A The answer is

Algebra
Q

\begin{tabular}{|c|c|c|c|} \hline Cash & $5,250 & Accumulated Depreciation-Equipment & $1,370...

Accounting
Q

Dividend yield is a comparison of a company's earnings per share and its...

Accounting
Q

What are the problems of storing all data in one uniform table? How can relational...

Accounting
Q

Weiring, Inc registra un documento por cobrar no amortizable al 10 % a 12 meses...

Accounting
Q

On March 1,2023, Jagger Metal Corp. issued 9% bonds dated January 1,2023. The bonds have...

Accounting
Q

Show work Compute Net Operating Assets Refer to the balance sheet information below for...

Accounting