Heath Food Corporation’s bonds have 19 years remaining to maturity. The bonds have a face value...

Question

Question

Heath Food Corporation’s bonds have 19 years remaining to maturity. The bonds have a face value...

Heath Food Corporation’s bonds have 19 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 11%. They pay interest annually and have a 8% coupon rate. What is their current yield? Round your answer to two decimal places.

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Using financial calculator
Input: FV= 1000, PMT=8%*1000 = 80, N=19 ,I/Y= 11

Hence find PV which is the price as 764.82

Current yield = Annual coupon/ Price

= 8%*1000/ 764.82

=10.46%

Add a comment

Answer 2

Similar Homework Help Questions

Current Yield for Annual Payments Heath Food Corporation’s bonds have 25 years remaining to maturity. The...

Current Yield for Annual Payments Heath Food Corporation’s bonds have 25 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 7%. They pay interest annually and have a 7% coupon rate. What is their current yield? Round your answer to two decimal places.
Meath Food Corporation's bonds have 16 years remaining to maturity. The bonds have a face value...

Meath Food Corporation's bonds have 16 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 10%. They pay interest annually and have a 12% coupon rate. What is their current yield? Do not round intermediate calculations. Round your answer to two decimal places.
1. Jackson Corporation's bonds have 10 years remaining to maturity. Interest is paid annually, the bonds...

1. Jackson Corporation's bonds have 10 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10%. The bonds have a yield to maturity of 11%. What is the current market price of these bonds? Do not round intermediate calculations. Round your answer to the nearest cent. 2. Wilson Corporation’s bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and...

The Brownstone Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds...

The Brownstone Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 9%. What is the yield to maturity at a current market price of $824? Round your answer to two decimal places. What is the yield to maturity at a current market price of $1,093? Round your answer to two decimal places.
The Brownstone Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds...

The Brownstone Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 9%. What is the yield to maturity at a current market price of $831? Round your answer to two decimal places. % What is the yield to maturity at a current market price of $1,104? Round your answer to two decimal places.
2. Country Sun Foods' bonds have 7 years remaining to maturity. The bonds have a face...

2. Country Sun Foods' bonds have 7 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 8 percent. They pay interest annually and have a 9% coupon rate. What is their current yield? 8.20012 ATTON a. 8.55% b. 8.95% of the 92118121 eSPI12 c. 9.41% d. 9.95% e. $1,052.06 e (9wans uoy oloi Tecunltd Corporation has issued bonds that have a 9 percent coupon rate, payable semiannually. The bonds mature in...

1, Madsen Motors's bonds have 10 years remaining to maturity. Interest is paid annually; they have...

1, Madsen Motors's bonds have 10 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 10%; and the yield to maturity is 11%. What is the bond's current market price? Round your answer to the nearest cent. 2, YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 par value, 8 years to maturity, and a 7% annual coupon and sells for $980. What is its yield to maturity...
Yield to Maturity for Annual Payments Wilson Wonders' bonds have 15 years remaining to maturity. Interest...

Yield to Maturity for Annual Payments Wilson Wonders' bonds have 15 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 12%. The bonds sell at a price of $1,100. What is their yield to maturity? Round your answer to two decimal places. ______%
Jackson Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have...

Jackson Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 8%. The bonds have a yield to maturity of 10%. What is the current market price of these bonds? Round your answer to the nearest cent.

Jackson Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have...

Jackson Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 8%. The bonds have a yield to maturity of 7%. What is the current market price of these bonds? Round your answer to the nearest cent.

Heath Food Corporation’s bonds have 19 years remaining to maturity. The bonds have a face value...

Homework Answers

Add Answer to:
Heath Food Corporation’s bonds have 19 years remaining to maturity. The bonds have a face value...

Post as a guest

Earn Coins

Current Yield for Annual Payments Heath Food Corporation’s bonds have 25 years remaining to maturity. The...

Meath Food Corporation's bonds have 16 years remaining to maturity. The bonds have a face value...

1. Jackson Corporation's bonds have 10 years remaining to maturity. Interest is paid annually, the bonds...

The Brownstone Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds...

The Brownstone Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds...

2. Country Sun Foods' bonds have 7 years remaining to maturity. The bonds have a face...

1, Madsen Motors's bonds have 10 years remaining to maturity. Interest is paid annually; they have...

Yield to Maturity for Annual Payments Wilson Wonders' bonds have 15 years remaining to maturity. Interest...

Jackson Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have...

Jackson Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have...

Heath Food Corporation’s bonds have 19 years remaining to maturity. The bonds have a face value...

Homework Answers

Add Answer to: Heath Food Corporation’s bonds have 19 years remaining to maturity. The bonds have a face value...

Post as a guest

Earn Coins

Add Answer to:
Heath Food Corporation’s bonds have 19 years remaining to maturity. The bonds have a face value...