What is the yield-to-maturity of the given bond


Question 1: What is the yield-to-maturity of the following bond? WHY?

Price = 113

Discount Rate Present Value of Cash Flow of Bond

6%    120
8%    114
9%    112
10%    98

Question 2: What is the return on the following investment?

Income =     $400
Price t=0 = $3000
Price t=1 = $4000

Question 3: Given the following information, calculate the Price of the stock.

g = 8%

r = 9%

d(1) = $4

Question 4: Given the following data, calculate the price earnings ratio for the stock,

g = 8%

r = 9%

Payout ratio of earnings = 40%

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is the yield-to-maturity of the given bond
Reference No:- TGS02037199

Now Priced at $20 (50% Discount)

Recommended (97%)

Rated (4.9/5)