Question

# 28 % The market price of a 19.00-year STRIPS is $324.00 The yield to maturity is Submit Answer format: Percentage Round to:

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Market price of STRIPS = $324 Term = 19 Years Market price of STRIPS = Face value / (1 + YTMn $324 = $1,000 / (1 + YTM)^19 $

Add a comment
Know the answer?
Add Answer to:
# 28 % The market price of a 19.00-year STRIPS is $324.00 The yield to maturity is Submit Answer format: Percentage Rou...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • # 13 The market price of a semi-annual pay bond is $985.26. It has 22.00 years...

    # 13 The market price of a semi-annual pay bond is $985.26. It has 22.00 years to maturity and a yield to maturity of 7.30%. What is the coupon rate? Submit Answer format: Percentage Round to: 0 decimal places (Example: 9%, % sign required. Will accept decimal format rounded to 2 decimal places (ex: 0.09)) unanswered

  • 14+ The market price of a stock is $22.76 and it just paid a dividend of...

    14+ The market price of a stock is $22.76 and it just paid a dividend of $1.73. The required rate of return is 11.69%. What is the expected growth rate of the dividend? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) unanswered not submitted The market price of a stock is $24.56 and it is expected to pay a dividend of $1.73 next...

  • The market price of a 19.00-year STRIPS is $314.00 The yield to maturity is ____%.

    The market price of a 19.00-year STRIPS is $314.00 The yield to maturity is ____%.

  • The market price of a stock is $22.43 and it just paid a dividend of $1.86....

    The market price of a stock is $22.43 and it just paid a dividend of $1.86. The required rate of return is 11.02%. What is the expected growth rate of the dividend? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) unanswered not submitted The market price of a stock is $24.56 and it is expected to pay a dividend of $1.73 next year....

  • #21 The market price of a stock is $25.06 and it is expected to pay a...

    #21 The market price of a stock is $25.06 and it is expected to pay a $4.58 dividend next year. The dividend is expected to grow at 2.74% forever. What is the required rate of return for the stock? Submit Answer format: Percentage Round to: 0 decimal places (Example: 9%, % sign required. Will accept decimal format rounded to 2 decimal places (ex: 0.09)) unanswered not submitted

  • #15 The market price of a share of preferred stock is $20.45 and the dividend is...

    #15 The market price of a share of preferred stock is $20.45 and the dividend is $2.21. What discount rate did the market use to value the stock? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) unanswered not_submitted

  • The risk-free rate is 1.01% and the market risk premium is 7.47%. A stock with a...

    The risk-free rate is 1.01% and the market risk premium is 7.47%. A stock with a B of 0.94 will have an expected return of __% Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) unanswered not submitted #5 The risk-free rate is 1.88% and the expected return on the market 9.45%. A stock with a B of 1.13 will have an expected return...

  • 17/18 Cinqua Terra Incorporated issued 10-year bonds three years ago with a coupon rate of 6.75%...

    17/18 Cinqua Terra Incorporated issued 10-year bonds three years ago with a coupon rate of 6.75% APR. The bonds pay semi- annual coupons, have a face value of $1,000 each and were issued at par value. Cinqua Terra bonds currently trade at $1,074.00 Given your answer to the 6-month return, what is the yield to maturity (as an EAR) for holding the bond? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal...

  • The risk-free rate is 1.61% and the market risk premium is 6.29%. A stock with a...

    The risk-free rate is 1.61% and the market risk premium is 6.29%. A stock with a ß of 1.30 will have an expected return of ____%. Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924) unanswered not_submitted

  • CSePub - Electronic Publishing For Professors Create eBooks Unanswered Answered A firm just paid a dividend...

    CSePub - Electronic Publishing For Professors Create eBooks Unanswered Answered A firm just paid a dividend of $3.03. The dividend is expected to grow at a constant rate of 3.80% forever and the required rate of return is 13.31%. What is the value of the stock? Submit not submitted Answer format: Currency: Round to: 2 decimal places. The market price of a stock is $32.94 and it is expected to pay a $3.63 dividend next year. The dividend is expected...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT