Bonds one year ago at coupon rate

Assignment Help Financial Management
Reference no: EM131324697

App Store Co. issued 16-year bonds one year ago at a coupon rate of 6.2 percent. The bonds make semiannual payments.

Required:

If the YTM on these bonds is 5.4 percent, what is the current bond price? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Current bond price $

Reference no: EM131324697

Questions Cloud

What is the future worth of equipment : Alpha Electronics can purchase a needed service for $90 per unit. The same service can be provided by equipment that costs $110,000 and that will have a salvage value of zero at the end of 10 years. What is the future worth of the equipment if the ex..
What will be the new degree of operating leverage : At an output level of 18,000 units, you have calculated that the degree of operating leverage is 2.10. The operating cash flow is $46,500 in this case. Ignore the effect of taxes. What will be the new degree of operating leverage for output levels of..
What is the cost of equity from retained earnings : Amber Inc. hired you as a consultant to estimate its cost of equity. You've collected the following data: The stock price, P0, is $22.5 and the most recent dividend, D0, was $0.8. Dividends are expected to grow at a constant rate of g = 8%. what is t..
The risk premium for securities in market : Market A deals in low-risk securities with an average interest rate of 5%. Market B deals in high-risk securities with an average interest rate of 7%. Suddenly there is a financial crisis and the economy enters recession. Before the recession, the ri..
Bonds one year ago at coupon rate : App Store Co. issued 16-year bonds one year ago at a coupon rate of 6.2 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.4 percent, what is the current bond price?
What is the monthly mortgage payment during month : Create the amortization spreadsheet and answer the following questions for a $350,000 15-year fixed-rate, constant-payment mortgage loan that is partiallyamortizing with a balloon payment of $100,000. What is the APR (annual percentage rate) on the l..
Show the compound interest overal growth rate : Mr. Richards needs more analysis to update his client presentations. He would like additional future value calculations. Using the same framework, calculate the future value pf the bank CD's that would pay 1% and 2% annual interest. Show the compound..
What did the video card cost : Gary is building a computer for a customer. Of the money he spent on parts, 20% went into buying the video card. If the rest of the computer cost $650, what did the video card cost?
Assume that risk-free rate of interest : Assume that the risk-free rate of interest is 3% and the expected rate of return on the market is 14%. A share of stock sells for $61 today. It will pay a dividend of $5 per share at the end of the year. Its beta is 1.5. What do investors expect the ..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the portfolios expected return

A portfolio is invested 15 percent in Stock G, 55 percent in Stock J, and 30 percent in Stock K. The expected returns on these stocks are 8 percent, 14 percent, and 18 percent, respectively. What is the portfolio’s expected return? How do you interpr..

  Determine how much money saved by renegotiating

Nicole lends $8,000 to Matt. Matt agrees to pay it back in ten annual installments at 7% with the first payment due in one year. After making four payments, Matt renegotiates to payoff the debt with four additional payments. The new payments are calc..

  Calculate yield-to-maturity and current yield

A 10-year, 12% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,060. The bond sells for $1,100. Calculate a) yield-to-maturity; b) current yield; c) yield to call

  Statements is true regarding repurchase agreements

Which one of the following statements is true regarding repurchase agreements?

  Personal financial situation on wages-loans-interest rate

Use the appropriate web site. Input data based on your personal financial situation on wages, loans, interest rate, loan term, down payment, other debt, property tax and property insurance. Determine what you can afford to borrow to finance the purch..

  What is coupon rate on bond-market making semiannual payment

TLC Enterprises has bonds on the market making semiannual payments, with 16 years to maturity, and selling for $859.16. At this price, the yield to maturity on the bond is 12%. What is the coupon rate on this bond? Suppose that you buy one bond today..

  How many miles east from the harbor has the boat traveled

A boat leaves the entrance of a harbor and travels 57 miles on a bearing of N 11 E. How many miles north and how many miles east from the harbor has the boat traveled? A) 57 mi N, 57 mi E B) 56 mi N, 10.9 mi E C) 293.2 mi N, 11.1 mi E D) 10.9 mi N, 5..

  Portfolio standard deviation

Security F has an expected return of 11.40 percent and a standard deviation of 44.40 percent per year. Security G has an expected return of 16.40 percent and a standard deviation of 63.40 percent per year. What is the expected return on a portfolio c..

  Growth company expects its dividends to growth

A growth company expects its dividends to growth at 10% each year for the next three years, and then maintain a sustainable growth rate of 4% thereafter. The last dividend was $2.00, and the required return is 16%. What is the value of the stock pric..

  Manufacturing overhead on the basis of direct labor-hours

Bakker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $112,850 and 3,700 estimated direct labor..

  What is the effective cost of borrowing in this case

Your firm has an average collection period of 36 days. Current practice is to factor all receivables immediately at a discount of 1.7 percent. What is the effective cost of borrowing in this case?

  What is the weighted average cost of capital

The Black Bird Company plans an expansion. The expansion is to be financed by selling $87 million in new debt and $5 million in new common stock. The before-tax required rate of return on debt is 11.39% percent and the required rate of return on equi..

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