## Answers

PV of Bond =800

Coupon =4%*1000 =40

Number of Periods =5

Par Value =1000

YTM using financial calculator

N=5;PMT=40;PV=-800;FV=1000;CPT I/Y =9.1637% or 9.16%

Current Yield =Coupon/Price =40/800 =5%

After 1 year maturity =5-1 =4

Price after 1 year =PV of Coupons+PV of Par Value =40*(((1-(1+9.1637%)^-4)/9.1637%)+1000/(1+9.1637%)^4=833.3099

Capital gain yield =(833.3099-800)/800 =4.16%

#### Similar Solved Questions

1 answer

##### What are the difference(s) between C/C++ arrays and Java arrays?. What are the differences(s) between C/C++...

What are the difference(s) between C/C++ arrays and Java arrays?. What are the differences(s) between C/C++ and Java’s dynamic memory allocation? What is the difference between pointer and reference in C++?...

1 answer

##### What is the slope of the line that passes through the points #(-5, -4)# and #(-1, -9)#?

What is the slope of the line that passes through the points #(-5, -4)# and #(-1, -9)#?...

1 answer

##### 0 Weighted average cost of capital American Exploration, Inc., a natural gas producer, is trying to...

0 Weighted average cost of capital American Exploration, Inc., a natural gas producer, is trying to decide whether to revise its target capital structure. Currently it targets a 50-50 mix of debt and equity, but it is considering a target capital structure with 70% debt. American Exploration current...

1 answer

##### Makers of cameras often use pixel count as an indicator of quality, and add sensors with...

Makers of cameras often use pixel count as an indicator of quality, and add sensors with more and more pixels. But the number of pixels is only one determinant of image quality. If the width of the central maximum of a diffraction pattern is larger than twice the spacing between the pixels, then pac...

1 answer

##### 1. If the volume of the medication is less than 10 ml, what is the appropriate...

1. If the volume of the medication is less than 10 ml, what is the appropriate way to measure this amount? 2. Name several circumstances in which medications need special considerations when administering them. 3. The nurse is in a patient room ready to administer a new medication to the patient. Wh...

1 answer

##### 2. please explain the process of each question 3. please show the oxidation of isobutanol 2....

2. please explain the process of each question 3. please show the oxidation of isobutanol 2. Draw the major organic products expected from the reaction of 2-pentyne below: O, HO 3. Show the products of the oxidation of isobutanol below: CrO3 (CH3 CHCH OH> 1,O PCC (CH3 CHCH2OH> CH2Cl2...

1 answer

##### Question 2 10 points are Alarm s har d theme of m oud to produce an...

Question 2 10 points are Alarm s har d theme of m oud to produce an electrical part and determined that the times follow a normal distribution with mean 45 hours. The production manager has developed a new procedure for producing the part He believes that these procedure will decrease the population...

1 answer

##### Thumbs up for correct answers( please answer all multiple choice questions) 4, Radiation heat transfer is...

thumbs up for correct answers( please answer all multiple choice questions) 4, Radiation heat transfer is characterized by A) energy transport as a result of bulk fluid motion A) thermal energy transfer as vibrational energy in the lattice structure of the material ) movement of discrete packets of ...

1 answer

##### Other things being equal, the more frequent the compounding period, the: Select one: O a. higher...

Other things being equal, the more frequent the compounding period, the: Select one: O a. higher the APR. O O b. higher the effective annual interest rate. c. lower the APR. O d. lower the effective annual interest rate....

1 answer

##### The mastoid process is _______ to the mandibular ramus

The mastoid process is _______ to the mandibular ramus...

1 answer

##### Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home...

Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and the co...

1 answer

##### Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties...

Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice—White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Product White Fragrant Loonzain Total Percentage of total sales 48 % 20 % 3...

1 answer

##### Kevin, a 54-year-old personal trainer hears a bee uzzing around his gym. Kevin anxiously opens the...

Kevin, a 54-year-old personal trainer hears a bee uzzing around his gym. Kevin anxiously opens the windows and doors in hopes the bee will fly out. Kevin mentions he has a severe allergy to bee venom and carries an EpiPen in the event he is stung. 1. Which hypersensitivity (I, II, III or IV) does Ke...

1 answer

##### F(x+h)-f(x) a) Find the difference quotient- -> (assume h + 0) for f(x) = x2 +...

f(x+h)-f(x) a) Find the difference quotient- -> (assume h + 0) for f(x) = x2 + 3x + 4 b) Find the inverse algebraically of g(x) = 2x-3...

1 answer

##### 2-10pts For the data listed above calculate the mean and the variance (you can use excel...

2-10pts For the data listed above calculate the mean and the variance (you can use excel calculator and just put results)? Mean (H) - M - XX 9 019 194990 89993.02 Variance (0) - Z Y-M) = 3910332583 3-15pts Pick a random sample, X, of 10 days from the data and list it below (dates and values)? Select...