NikkiG's Corporation's 10-year bonds are currently yielding a return of 6.25 percent. The expected inflation premium is 1.20 percent annually and the real risk-free rate is expected to be 2.50 percent annually over the next ten years. The liquidity risk premium on NikkiG's bonds is 0.45 percent. The maturity risk premium is 0.30 percent on 2-year securities and increases by 0.07 percent for each additional year to maturity. Calculate the default risk premium on NikkiG's 10-year bonds. Note: Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34). Default risk premium %

A corporation’s 10-year bonds are currently yielding a return of 6.05 percent. The expected inflation premium is 1.00 percent annually and the real risk-free rate is expected to be 2.10 percent annually over the next ten years. The liquidity risk premium on the bonds is 0.25 percent. The maturity risk premium is 0.10 percent on 2-year securities and increases by 0.05 percent for each additional year to maturity. Calculate the default risk premium on the 10-year bonds. How would an increase in liquidity affect the nominal interest rate?

Fingen's 11​-year, ​$1,000 par value bonds pay 11 percent interest annually. The market price of the bonds is ​$1,110 and the​ market's required yield to maturity on a​ comparable-risk bond is 8 percent. a.  Compute the​ bond's yield to maturity. b.  Determine the value of the bond to​ you, given your required rate of return. c.  Should you purchase the​ bond?

Fingen's 16​-year, ​$1,000 par value bonds pay 11 percent interest annually. The market price of the bonds is ​$1,090 and the​ market's required yield to maturity on a​ comparable-risk bond is 8 percent.   a.  Compute the​ bond's yield to maturity. b.  Determine the value of the bond to​ you, given your required rate of return. c.  Should you purchase the​ bond?   What is your yield to maturity on the Fingen bonds given the market price of the​ bonds? __​% ​(Round to two decimal​ places.)

Drongo Corporation's 3-year bonds currently yield 6.3 percent and have an inflation premium of 3.3%. The real risk-free rate of interest, r*, is 1.5 percent and is assumed to be constant. The maturity risk premium (MRP) is estimated to be 0.1% (t - 1), where t is equal to the time to maturity. The default risk and liquidity premiums for this company's bonds total 1.3 percent and are believed to be the same for all bonds issued by this company. If the average inflation rate is expected to be 3 percent for years 4, 5, and 6, what is the yield on a 6-year bond for Drongo Corporation? ○ 6.05% 6.45% 6.25% 5.85% 5.65%

Fingen's 12-year, $1000 par value bonds pay 11 percent interest annually. The market price of the bonds is $1050 and the market's required yield to maturity on a comparable - risk bond is 9 percent. Compute the bond's yield to maturity. Determine the value of the bond to you, given your required rate of return. Should you purchase the bond?

Fingen's 14-year, $1,000 par value bonds pay 9 percent interest annually. The market price of the bonds is $1,100 and the market's required yield to maturity on a comparable-risk bond is 6 percent. a.  Compute the bond's yield to maturity. b.  Determine the value of the bond to you, given your required rate of return. c.  Should you purchase the bond?

Crane, Inc., has four-year bonds outstanding that pay a coupon rate of 7.00 percent and make coupon payments semiannually. If these bonds are currently selling at $919.89. What is the yield to maturity that an investor can expect to earn on these bonds? What is the effective annual yeild?

Drongo Corporation's 4-year bonds currently yield 7.7 percent and have an inflation premium of 3.7%. The real risk-free rate of interest, r*, is 2.6 percent and is assumed to be constant. The maturity risk premium (MRP) is estimated to be 0.1% (t-1), where t is equal to the time to maturity. The default risk and liquidity premiums for this company's bonds total 1.1 percent and are believed to be the same for all bonds issued by this company. If the average inflation rate is expected to be 4 percent for years 5 and 6, what is the yield on a 6-year bond for Drongo Corporation? 8.00% O 8.50% 9.00% 9.50% 10.00%

Fingen's 18​-year, ​$1 comma 000 par value bonds pay 9 percent interest annually. The market price of the bonds is ​$930 and the​ market's required yield to maturity on a​ comparable-risk bond is 8 percent. a.  Compute the​ bond's yield to maturity. b.  Determine the value of the bond to​ you, given your required rate of return. c.  Should you purchase the​ bond?