At what price should the bonds sell

Assignment Help Finance Basics
Reference no: EM13291047

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 7.0%, at what price should the bonds sell?

Reference no: EM13291047

Questions Cloud

Derive the average power delivered by the voltage source : A parallel RC circuit has been connected to a voltage source for all time. R=0.025 Ohms, C= 0.125 farad and v(t)= 10 sin (5t). 1 Derive the current I(t), delivered by the source tothe RC circuit as a function of time.
What is their yield to call : Sadik Inc.'s bonds currently sell for $1,180 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100. What is their yield to call (YTC)?
Find the length of the water column in the right arm of tube : The left arm of the tube has a cross-sectional area of A1=10 cm2, and the right arm has a cross-sectional area of A2=5 cm2. find the length of the water column in the right arm of the U-tube
Calculate the line current drawn from the supply : Given that, stator iron loss is 2kW, windage and friction losses are 1.2kW and resistance between two stator terminals = 0.4W, for slip s=0.05, mechanical power supplied to the load PL=41.5 kW and Motorefficiency h =82%; Calculate: Line current dra..
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 7.0%, at what price should the bonds sell?
Dsescribe steam is withdrawn from the top of the tank : A tank contains 20 percent liquid water and 80 percent steam by volume at 200 degrees celsius. Steam is withdrawn from the top of the tank until the fluid remaining in the tank is at temperature of 150 degrees. Assuming the tank is adiabatic and t..
What is the economic order quantity : The sofas are sold out before they are restocked. What is the economic order quantity?
Compute the charge on each ball : Two identical pith balls are hung by insulating strings, touching each other, as in the picture below. The mass of each ball is 0.002kg. Determine the charge on each ball
What is the length of the inventory period : Stoney Brooke, Inc. has sales of $860,000 and cost of goods sold of $630,000. The firm had a beginning inventory of $37,000 and an ending inventory of $45,000. What is the length of the inventory period.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  What are economic sectors and market subsections included

Choose 3 Indices (but not DJIA, NASDAQ & S&P 500)What are economic sectors and market subsections are included?

  Why are the percentage changes different

If sales increase by 10 percent to 11,000 units, by what percentage will each firms earnings after interest increase? To answer the question, determine the earnings after taxes and compute the percentage increase in these earnings from the answers..

  How much was the car

Today you buy a used car. The dealer accepts a down payment of $2,000 and lets you pay $1,900 per year for 5 years. The interest rate on the loan was 6%. How much was the car?

  What is the annual operating cash flow

A 5-year project is expected to generate revenues of $90000, variable costs of $35000, and fixed costs of $15000. The annual depreciation is $8000 and the tax rate is 35 percent. What is the annual operating cash flow?

  What is the correlation coefficient between the returns

The covariance of the returns between Willow Stock and Sky Diamond Stock is 0.0840. The variance of Willow is 0.1300, and the variance of Sky Diamond is 0.1190. What is the correlation coefficient between the returns of the two stocks?

  What would your initial capital investment be

Your shoe design makes 23 pairs for every 1,000 yerds of textile. If you get an order for 500K orders of pairs, then what would your initial capital investment be?

  Describe the term capital budgeting

Describe the term Capital budgeting and explain what are the 30 equal annual payments

  What is the value of the firm according to mm

Your firm has debt worth $200,000, with a yield of 9%, and equity worth $300,000. It is growing at a 5% rate, and its tax rate is 40%. A similar firm with no debt has a cost of equity of 12%. What is the value of the firm according to MM with corp..

  How much profit is available for common stockholders

Suppose that it is financed by a combination of common stock and $1 million of debt. The interest rate on the debt is 10%, and the corporate tax rate is 35%. How much profit is available for common stockholders after payment of interest and corpor..

  Determine the firm weighted average cost of capital

Weekend Warriors, Inc. has 35% debt and 65% equity in its capital structure. The firm's estimated after tax cost of debt is 8% and its estimated cost of equity is 13%. Determine the firm's weighted average cost of capital.

  What bid price per carton should you submit

If your tax rate is 35 percent and you require a 14 percent return on your investment, what bid price per carton should you submit?

  Computation of free cash flow

Computation of Free cash flow for the company's depreciation expense is $500,000 and it has no amortization expense.

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