Purchase Solution

Approximate Bond Yield to Maturity of a Corporation

Not what you're looking for?

Ask Custom Question

The Pioneer Petroleum Corporation has a bond outstanding with an $80 annual interest payment, a market price of $900, and a maturity date in two years. Assume the par value of the bond is $1,000. Find the Approximate Yield to Maturity.

Purchase this Solution
Solution Summary

The solution finds the Approximate Yield to Maturity in this case.

Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

View More Free Quizzes
Related BrainMass Solutions

  • Tyler Food Corporation

    177056 Tyler Food Corporation: Approximate Yield to Maturity Bonds issued by the Tyler Food Corporation have a par value of $1,000, are selling for $1,080, and have 20 years remaining to maturity.

  • Bond Valuation

    218931 Chelle Corporation bond: price change including convexity effect Please show work Thank you A bond for the Chelle Corporation has the following charateristics: Maturity 12 Years Coupon 10% Yield to Maturity 9.50%

  • Bingham Corporation and Debt

    This solution contains step-by-step calculations in an Excel file to determine the approximate yield to maturity using annual interest, price of bond, principle, years to maturity. An analysis of the results is also provided.

  • After tax cost of debt

    19837 After tax cost of debt 6. Russell Container Corporation has a $1,000 par value bond outstanding with 20 years to maturity. The bond carries an annual interest payment of $95 and is currently selling for $920 per bond.

  • Dilution in Earnings, Yield to maturity

    The bond, which pays interest of $80 annually, was issued at par. (a)  What was the yield to maturity on the bond at the time of issue? (b)  If the bond is currently selling at $820, what is its approximate yield to maturity?

  • Determine Coupon Rate, Current Yield, and Yield to Maturity

    335651 Determine Coupon Rate, Current Yield, and Yield to Maturity The Garland Corporation has a $1,000 par value bond outstanding with a $90 annual interest payment, a market price of $820 and a maturity date in five years.

  • Bond Yields Pioneer Petroleum Corporation: calculate coupon rate, current rate, YTM

    The approximate yield to maturity.

  • Calculating the approximate yield for a callable bond

    The appropriate approximate yield is referring to the yield to maturity of the bond. The price of the bond is $1,050 while the call price is 1,000 + 90 = 1,090 and so there is less likelihood of the bond being called.

  • Approximate yield to maturity

    365916 Ten year bond sells for $1195, pays 11%: What is its approximate yield to maturity? A ten-year bond pays 11% interest on a $1000 face value annually. If it currently sells for $1,195, what is its approximate yield to maturity?

View More Related Solutions