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Q: What is the yield to maturity of a nine-year bond that pays a coupon rate of 20% per year, has a $1,000 par value, and is currently priced at $1,407? Round your answer to the nearest whole percent
and assume annual coupon payments. A. 14% B. 12% C. 11% D. 5%
A: Since the coupon rate is 20% per year and par is 1000 coupons are $200 so the present value of the stream of payments is ? $200(1+i)^(-n) for n=1 to 9 plus $1000(1+i)^(-9) i is the rate as a decimal and it is the value of this expression nearest [ [ [ to $1,407 I'm not sure the correct response is there because i=0.062 gives this result. However we ignore the return of the $1,000 9 years
from now then i=0.052 produces a $1408.98 value for the stream of payments. B. 5% ] ] ]
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Original conversation
User: What is the yield to maturity of a nine-year bond that pays a coupon rate of 20% per year, has a $1,000 par value, and is currently priced at $1,407? Round your answer to the nearest whole percent and assume annual coupon payments. A. 14% B. 12% C. 11% D. 5%

Weegy: Since the coupon rate is 20% per year and par is 1000 coupons are $200 so the present value of the stream of payments is ? $200(1+i)^(-n) for n=1 to 9 plus $1000(1+i)^(-9) i is the rate as a decimal and it is the value of this expression nearest [ [ [ to $1,407 I'm not sure the correct response is there because i=0.062 gives this result. However we ignore the return of the $1,000 9 years from now then i=0.052 produces a $1408.98 value for the stream of payments. B. 5% ] ] ]
tiffanylatrelle|Points 108|

User: The common stockholders are most concerned with: A. the size of the firm’s beginning earnings per share. B. the risk of the investment. C. the spread between the return generated on new investments and the investor’s required rate of return. D. the percentage of profits retained.

Weegy: B. The size of the firm's beginning earnings per share.
nikkidonker|Points 100|

User: Bondholders have a priority claim on assets ahead of: A. shareholders. B. investors C. creditors. D. common and preferred stockholders.

User: Bondholders have a priority claim on assets ahead of: A. shareholders. B. investors C. creditors. D. common and preferred stockholders.

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Asked 12/24/2012 8:29:31 PM
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Questions asked by the same visitor
When doing "positioning," a marketing manager should: A. focus on specific product features of all generic competitors. B. rely on how customers think about proposed and/or existing brands in a market. C. exclusively use focus groups. D. avoid targeting strategies. E. plan physical product changes rather than image changes.
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Updated 8/14/2015 5:10:02 PM
1 Answer/Comment
When doing "positioning," a marketing manager should: rely on how customers think about proposed and/or existing brands in a market.
Added 8/14/2015 5:10:02 PM
This answer has been confirmed as correct and helpful.
Confirmed by jeifunk [8/15/2015 2:16:31 AM]
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