+1-415-670-9189
info@expertsmind.com
Assume annual coupons-what is the present value
Course:- Financial Management
Reference No.:- EM13942946





Assignment Help >> Financial Management

What is the present value of a $1,000 par corporate bond from the Burns Corp. with an annual coupon rate of 10% and 30 years to maturity when market rates on similar bonds are 8%? Assume annual coupons.

$1,466.67

$1,590.33

$1,225.16

$1,348.75




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
Jones Inc. issued a bond with an annual coupon rate of 10% with interest paid annually. The bond matures in 15 years. The par value of the bond is $1,000. If your required ret
A machine costs $73,000 initially and will have a salvage value of $10,000 after 9 years. It will also have an operating cost of $21,000 in year 1, with 5% continuing increase
Calculate a firm's required rates of return for both of its equity components: Its common stock sells for $50 per share and will pay a $6 dividend next year which is expected
Suppose that five years ago you borrowed $500,000 using a 30-year fixed-rate mortgage with an annual interest rate of 8% with monthly payments and compounding. What is the net
Suppose a ten-year, $1,000 bond with an 8.2% coupon rate and semiannual coupons are trading for $1,035.33. What is the bond's yield to maturity? (expressed as an APR with semi
A real estate developer purchased a piece of property at the end of December 2005 for $250,000. The developer sold it at the end of a few years later for $860,000 and was plea
The globe Incorporated has EBIT of $20 million for the current year. On the firm balance sheet, there is $80 million of debt outstanding that carries a coupon rate of 8 percen
If all capital outlays are funded from retained earnings and new borrowings and if Clynne follows a residual dividend policy, what capital outlays are planned for the coming