Calculate the bonds price today

Assignment Help Financial Management
Reference no: EM131016156

General Mills has a $1,000 par value, 29-year to maturity bond outstanding with an annual coupon rate of 11.56 percent per year, paid semiannually. Market interest rates on similar bonds are 11.27 percent. Calculate the bond’s price today.

Reference no: EM131016156

Questions Cloud

International investment projects : Global Toys, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. What is the payback period for each project?
How the market would set the yield to maturity : Blue Crab, Inc. plans to issue new bonds, but is uncertain how the market would set the yield to maturity. The bonds would be 19-year to maturity, carry a 13.29 percent annual coupon, and have a $1,000 par value. Blue Crab, Inc. has determined that t..
Assume annual coupon payments : What is the yield to maturity of a 23-year bond that pays a coupon rate of 7.44 percent per year, has a $1,000 par value, and is currently priced at $881? Assume annual coupon payments.
Bonds pay an annual coupon rate : Pet Food Company bonds pay an annual coupon rate of 8.73 percent. Coupon payments are paid semiannually. Bonds have 4 years to maturity and par value of $1,000. Compute the value of Pet Food Company bonds if the market interest rate on this type of b..
Calculate the bonds price today : General Mills has a $1,000 par value, 29-year to maturity bond outstanding with an annual coupon rate of 11.56 percent per year, paid semiannually. Market interest rates on similar bonds are 11.27 percent. Calculate the bond’s price today.
What is the estimated value of tall tree timber : Tall Tree Timber has net income of $167,000 for the year with 60,000 shares of stock outstanding. Big Trees is a similar firm with similar growth opportunities and it has 75,000 shares of stock outstanding with a market price of $32.20 a share and ea..
Stock worth to you if the dividends increase : Blasco just paid an annual dividend of $1.24 a share. What is one share of this stock worth to you if the dividends increase by 2 percent annually and you require a rate of return of 12 percent?
Sales growth rate and price-to-earnings ratio : Consider the cell phone giant company Apples. Apple has 3 Key Financial Ratios: gross margin, sales growth rate, and price-to-earnings (P/E) ratio. How could you use Apple’s example in the real world and how this can help run a business?
Firms cost of equity using each of these three approaches : Barton Industries estimates its cost of common equity by using three approaches: the CAPM, the bond-yield-plus-risk-premium approach, and the DCF model. Barton expects next year's annual dividend, D1, to be $1.80 and it expects dividends to grow at a..

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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