At what price should the bonds sell

Assignment Help Finance Basics
Reference no: EM13271901

Ryngaert Inc. recently issued noncallable bonds that mature in 15 years. They have a par value of $1,000 and an annual coupon of 5.7%. If the current market interest rate is 6.8%, at what price should the bonds sell?

Reference no: EM13271901

Questions Cloud

Find how many minutes will it take the tank to over flow : A storage tank has a Diameter of 20ft and a height of 10ft. The output volumetric flow from this tank is given by fout(t)=2h(t) where h(t) is the height of the liquid in the tank. At a particular time the tank is at steady state with an input flow..
What is the firms expected dividend : A firm stock is selling at $95.00 per share. Its growth rate is 10% and investors demand is 15% on this stock. What is the firms expected dividend?
What was you percent return : Directway stock was $45.30 per share at the end of last year. Since then, it paid a 1.40 per share dividend last year. The stock price is currently $43.20. If you owned 400 shared of DirectWay, what was you percent return?
Find the work done by the force you exert on the bag : Suppose you carry a bag of groceries weighing 124 N from your car to your kitchen, a distance of 61 m, find the work done by the force you exert on the bag
At what price should the bonds sell : Ryngaert Inc. recently issued noncallable bonds that mature in 15 years. They have a par value of $1,000 and an annual coupon of 5.7%. If the current market interest rate is 6.8%, at what price should the bonds sell?
Should it replace the old steamer : To support the greater sales, the new machine would require that inventories increase by $2,900, but accounts payable would simultaneously increase by $700. Gilbert's marginal federal plus state tax rate is 40%, and its WACC is 15%. Should it repl..
Find the values of r-c-d1 and d2 for the cicuit : The voltage response for the circuit is known to be v(t)= D1te^-500t + D2e^-500t. The initial current in the inductor is -10mA and the initial voltage on the capacitor = 8V. The inductor has an inductance of 4H,
What is the radius of the curved exit ramp : We want to design a freeway off ramp that has a radius appropriate for the posted speed. What is the radius of the curved exit ramp such that the car does not skid off the ramp
Current issues in canadian-american relations : During our stay in Washington, we saw and experienced a number of things that spoke to the larger 'American experience' in the world. From the monuments that we visited, to the museums, to the Canadian embassy to the United States

Reviews

Write a Review

Finance Basics Questions & Answers

  Find yield to maturity

Boston Common Community Hospital's tax-exempt bond is selling for dollar 626.53/bond and has a remaining maturity of 20-years. If the par value is $1,000 & coupon value is 7 percent, what is the yield to maturity?

  Determine the nominal yield of the bond

A bond with a $114 yearly coupon, maturing in ten years at a value of $1000 has a current market price of $920. Determine the nominal yield of the bond?

  Major segments of the foreign exchange market

What are the two major segments of the foreign exchange market, and what types of foreign exchange instruments are traded within these markets?

  What is the net present value of the following cash flows

What is the net present value of the following cash flows? Assume an interest rate of 3.59%

  Determine the return the investment

The expected return for an investment is 30 percent. If we know the following data about the return distribution of investment, determine the return the investment produce if the economic climate is average?

  What is the return on the canadian currency

What is the local return on on the Royal Bank of Canada stock? c. What is the return on the Canadian currency, C$. d. What is the total $ return on an invest ment in the Royal Bank of Canada Stock?

  Analogies used to describe the theory of concepts

Analogies used to describe the theory of concepts and Cite the pages in the book where you found this analogy

  Find the value of the stock per share

The income tax rate of the company is 30%. Find the value of the stock per share after this buyback. Is the company making the right move?

  Find the value of depreciation change

Reported $9,000 of sales, $6,000 of operating costs other than depreciation, and $1,500 of depreciation. The company had no amortization charges, it had issued $4,000 of bonds that carry a 7 percent interest rate,

  Describe valuation of shares by discounting cash flows

Describe Valuation of shares by discounting cash flows technique and What is the firm's WACC

  Determine cost of capital expansion

Kauai Surf Boards seeking raise capital a large group investors expand operations. Assume investors S&P 500 portfolio, a volatility 15 percent expected return 10 percent.

  Evaluate the equipment purchase

If the firm's tax rate is 30% what discount rate should you use to evaluate the equipment purchase?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd