Calculate present value of first coupon payment

Assignment Help Business Management
Reference no: EM131251430

As an investor, you want to hold a bond with $1000 par value that pays 8% coupon semi-annually(180days). however, you miss the bond's auction day due to lack of cash at hand but now you have the cash to invest. Suppose there are 90 days left between the settlement data and next coupon payment and the current yield to maturity is 9%. Please show how to calculate the present value of the first coupon payment that you will receive (90 days from now)

Reference no: EM131251430

Questions Cloud

What is the incremental cash flow : A company is considering additional production facilities and expects inventory to increase by $4 million, accounts receivable by $6 million, and accounts payable by $3 million. If other working capital accounts stay the same, what is the increme..
Analyzing walmart debt policy : Write a 3 page research paper analyzing Walmart's debt policy and weighted average cost of capital. In your paper, be sure to address the following questions:
Record the single process that is using the most memory : Record the total number of processes that are actively running. Record the single process that is using the most memory. Exploring the Activity Monitor (Screenshot and written response required).
How would each of these magnitude spectra change : How would each of these magnitude spectra change if the test pattern was changed to an alternating sequence of four binary l's followed by two binary 0's?
Calculate present value of first coupon payment : Suppose there are 90 days left between the settlement data and next coupon payment and the current yield to maturity is 9%. Please show how to calculate the present value of the first coupon payment that you will receive (90 days from now)
Which means that it encompasses a wide range of vocal : Like many languages, American English has various ________________ - geographic or social differences in the way groups of people use the same language.
Recommend a review period and target inventory level : Thus, he requested that a periodic review system be used. - Recommend a review period and target inventory level for a system with a 94 percent service level.
Determine the magnitude spectra for unipolar nrz signaling : How would the magnitude spectra change if the test pattern was changed to an alternating sequence of four 1's followed by four binary 0's?
Smart consulting stock : An annual dividend of $6.00 was just paid by Smart Consulting. The required return on Smart Consulting's stock is 12.75%. If the dividends are expected to grow annually at 3.15% at what price should Smart Consulting's stock be selling according ..

Reviews

Write a Review

Business Management Questions & Answers

  Determining the strength of the part

In plastic injection molding, temperature, time in mold, and injection pressure each play an important role in determining the strength of the part.

  Power tactics preferred by us managers

1) With downward influence, power tactics preferred by U.S. managers include 2) Hard power tactics best influence those with which following characteristic?

  Global managers - global competitivenesssee the article and

global managers - global competitivenesssee the article and answer the following questions kedia ben l. and ananda

  Firms have become more reliant on alliances

Why do you think firms have become more reliant on alliances? - discuss the nature of different types of alliances.

  Prepare a memo report addressed to dori lundy

The purpose of your report is to promote business, not tourism, and to help your boss avoid embarrassment or worse. Prepare a memo report addressed to Dori Lundy, president of Paradigm CompuTech.

  Illustrate what were the problems transferring

Toys are US first made public its plans to enter the Japanese market in 1989. Was Japan an attractive market for Toy's R US?

  Describe about fair-minded qualities

Descreption about Fair-Minded Qualities

  How in your opinion will flipkart benefit

India's Biggest Online Retailer, Flipkart, Plans To Go "app-only" Later This Year. How In Your Opinion Will Flipkart Benefit From Such A Move And How Will Other Players (Amazon, Snapdeal, Paytm) Adapt Their Strategies To Suit The Changing Trends?

  What can you do about overt and covert resistance?

What can you do about overt and covert resistance?

  What will be the system monetary supply

What will be the system monetary supply

  The systems model of change were affected by the changes

Which of the target elements of change within the systems model of change were affected by the changes at HCL?

  Overseeing five servers and two bussers

Karla Gomez is the supervisor at the Grand Hotel's casual restaurant. Karla's responsibilities include overseeing five servers and two bussers, seating guests, and taking reservations.

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