Question

What is the yield to maturity (YTM) on a simple loan for $2,000 that requires a repayment of $10,000 in five years time? The yield to maturity is % (Round your response to one decimal place.
0 0
Add a comment Improve this question Transcribed image text
Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
What is the yield to maturity (YTM) on a simple loan for $2,000 that requires a...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • Calculate the yield to maturity (YTM) for a one-year bond with a purchase price of $8,000,...

    Calculate the yield to maturity (YTM) for a one-year bond with a purchase price of $8,000, a face value of $10,000, and a current yield of 10%. The yield to maturity is 35.0%. (Round your response to one decimal place.) The yield to maturity on the bond given above is greater than the YTM of a similar $10,000 20-year bond with a current yield of 20% selling for $8,000.

  • Font Paragraph 12. What is the yield to maturity on a simple loan for $1 million...

    Font Paragraph 12. What is the yield to maturity on a simple loan for $1 million that requires a repayment of $1.5 million after four years? A) 5% B) 10.67% C) 12 24% D) 15% the yield to maturity. 13. For simple loans, the simple interest rate is_ A) greater than B) less than C) equal to D) not comparable to 14. Assume that you borrow $10,000 to purchase a new automobile and that you finance it with a four-...

  • Calculate the yield to maturity ​(YTM) for a​ one-year coupon bond with a purchase price of...

    Calculate the yield to maturity ​(YTM) for a​ one-year coupon bond with a purchase price of ​$8000​ a face value of ​$10000​ and a current yield  of 10​%. The yield to maturity is nothing​%. ​(Round your response to one decimal​ place.)

  • This C 3 of 6 (2 complete) IS Question: 1 pt Calculate the present value of...

    This C 3 of 6 (2 complete) IS Question: 1 pt Calculate the present value of a $1,300 discount bond with 7 years to maturity if the yield to maturity is 5%. The present value is S (Round your response to two decimal places) This Question: 1 pt 4 of 6 (2 complete) What is the yield to maturity (YTM) on a simple loan for $1,000 that requires a repayment of $3,000 in five years' time? The yield to maturity...

  • The yield to maturity (YTM) on 1-year zero-coupon bonds is 4% and the YTM on 2-year...

    The yield to maturity (YTM) on 1-year zero-coupon bonds is 4% and the YTM on 2-year zeros is 5%. The yield to maturity on 2-year-maturity coupon bonds with coupon rates of 9% (paid annually) is 4.5%. a. What arbitrage opportunity is available for an investment banking firm? and $ The arbitrage strategy is to buy zeros with face values of $ , and respective maturities of one year and two years. b. What is the profit on the activity? (Do...

  • The yield to maturity (YTM) on 1-year zero-coupon bonds is 5% and the YTM on 2-year...

    The yield to maturity (YTM) on 1-year zero-coupon bonds is 5% and the YTM on 2-year zeros is 6%. The yield to maturity on 2-year- maturity coupon bonds with coupon rates of 9% (paid annually) is 5.9%. a. What arbitrage opportunity is available for an investment banking firm? The arbitrage strategy is to buy zeros with face values of $ D and $C , and respective maturities of one year and two years. b. What is the profit on the...

  • A $10,000 8 percent coupon bond that sells for $10,000 has a yield to maturity of...

    A $10,000 8 percent coupon bond that sells for $10,000 has a yield to maturity of 14 percent. 12 percent. 10 percent. 8 percent. 4.2 The Distinction Between Interest Rates and Returns 4 of 5 (0 complete) End-of-Chapter Exercise 19 Calculate the yield to maturity (YTM) for a one-year coupon bond with a purchase price of $800, a face value of $1,000, and a cumrent yield of 5%. The yield to maturity is (Round your response to one decimal place.)...

  • If a lender makes a simple loan of $800 for 2 years and charges 3%, then...

    If a lender makes a simple loan of $800 for 2 years and charges 3%, then the amount that the lender receive at maturity is $?. Round your response to the nearest two decimal place If a lender makes a simple loan of $2500 for one year and charges $30 interest, then the simple interest rate on that loan is ?% Round your response to the nearest whole number. If a borrower must repay $106.50 one year from today in...

  • If a lender makes a simple loan of $400 for 4 years and charges 3%, then...

    If a lender makes a simple loan of $400 for 4 years and charges 3%, then the amount that the lender receive at maturity is $ (Round your response to the nearest two decimal place) If a lender makes a simple loan of $3000 for one year and charges $70 interest, then the simple interest rate on that loan is %. (Round your response to the nearest whole number) If a borrower must repay $106.50 one year from today in...

  • The current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) YTM - oben...

    The current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) YTM - oben 5 50% 5.05% of 5.49% 5.74% 5.96% 6.02% What is the risk-free interest rate for a five-year maturity? The risk-free interest rate for a five-year maturity is %. (Round to two decimal places.)

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