Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. use this information to answer the following quest

Use this information to answer the following questions An outstanding 30 year corporate bond for a...

70.2K

Verified Solution

Question

Finance

Use this information to answer the following questions

An outstanding 30 year corporate bond for a U.S. company has 14years left to maturity and has a coupon rate of 4.0%. The bond iscurrently selling for $980.

1) What is the yield to maturity?

2) What is the current yield?

3) What is the capital gains yield?

Answer & Explanation Solved by verified expert
3.8 Ratings (439 Votes)
Information provided Face value future value 1000 Coupon rate 4 Coupon payment 0041000 40 Time 14 years Current pricepresent value 980    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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Use this information to answer the following questionsAn outstanding 30 year corporate bond for a U.S. company has 14years left to maturity and has a coupon rate of 4.0%. The bond iscurrently selling for $980.1) What is the yield to maturity?2) What is the current yield?3) What is the capital gains yield?

Other questions asked by students

Q

1. List the stages of development that occur (in order) from ovulation to implantation 2. What is...

Medical Sciences
Q

There are many important physiological parameters that are regulated by both the nervous system and the...

Biology
Q

Calculate the field weights of the ingredients for 0.039 m3 of concrete by using ACI Method...

Civil Engineering
Q

do you know anyone who would be considered an at-risk or “problem-drinker”? Do they suffer from any...

Psychology
Q

Question text Top Notch software has a customer who isn't happy with their service. The issue with...

General Management
Q

should have an inductance of 1 5H 3 1 1H 49 In a series L...

Physics
Q

in x x Which of the following shows the simplified function of csc x sin

Calculus
Q

Solve the inequality 5 x 4 11 X

Algebra
Q

KL Company uses a job order costing system. During the month of July, the following...

Accounting
Q

The following information is for X Company's two products, A and B: Product A Product...

Accounting
Q

Some recent financial statements for Smolira Golf, Inc. follow. SMOLIRA GOLF, INC. 2019 Income Statement...

Finance
Q

I only need the chart of g.Cash budget there are some data I have...

Accounting