Calculate the present value of a 1000 zero coupon bond

Assignment Help Finance Basics
Reference no: EM131126462

Calculate the present value of a $1,000 zero-coupon bond with five years to maturity if the yield to maturity is 6%.

Reference no: EM131126462

Questions Cloud

How much would you be willing to pay if this were a 20 year : You are willing to pay $15,625 now to purchase a perpetuity that will pay you and your heirs $1,250 each year, forever, starting at the end of this year. If your required rate of return does not change, how much would you be willing to pay if this we..
What is the bonds yield to maturity : Consider a coupon bond that has a $1,000 par value and a coupon rate of 10%. The bond is currently selling for $1,150 and has eight years to maturity. What is the bond’s yield to maturity?
What relationships do you observe between maturity : What relationships do you observe between maturity and discount rate and the currentprice?
What is this grand prize really worth : A lottery claims its grand prize is $10 million, payable over 20 years at $500,000 per year. If the first payment is made immediately, what is this grand prize really worth? Use an interest rate of 6%.
Calculate the present value of a 1000 zero coupon bond : Calculate the present value of a $1,000 zero-coupon bond with five years to maturity if the yield to maturity is 6%.
Why do managers of financial institutions care so much : Why do managers of financial institutions care so much about the activities of the Federal Reserve System?
What are the other important financial intermediaries : What are the other important financial intermediaries in the economy besides banks?
How can changes in foreign exchange rates affect : How can changes in foreign exchange rates affect the profitability of financial institutions?
How can a change in interest rates affect the profitability : How can a change in interest rates affect the profitability of financial institutions?

Reviews

Write a Review

 

Finance Basics Questions & Answers

  A contract with the white shark fishing company

Jake borrowed $800,000 from the Gateway Bank to purchase a fishing boat. He keeps the boat at a dock owned by the Harbor Company. He uses the boat to earn income by fishing. Jake also has a contract with the White Shark Fishing Company to transpor..

  Interest paid semiannually

Rell Computers has 5.25 percent coupon bonds outstanding with a current market price of $546.19. The yield to maturity is 16.28 percent and the face value is $1,000. Interest paid semiannually. How many years is it until these bonds mature?

  How long will they take to triple their sales

Elegant designers have generated sales of $625,000 for the current year. If they can grow their sales at a rate of 12% every year, how long will they take to triple their sales?

  A six-year us government bond ie face value is 1000 makes

a six-year us government bond i.e. face value is 1000 makes annual coupon payments of 5 and offers a yield of 3

  Explain how the appreciation of the australian dollar

Explain how the appreciation of the Australian dollar against the U.S. dollar would affect the return to a U.S. firm that invested in an Australian money market security.

  What is the npv for the tool investment

Any net operating working capital will be recovered at the end of the project as well as the manufacturing tool can be sold for $50,000. Miracle co. has a 10% WACC and a 40% tax rate. What is the NPV for the tool investment?

  Contrast the effect on the price of both bonds if yields

on may 30 1999 janice kerr is considering purchasing one of the following newly issued 10-year aaa corporate bonds

  What is the project npv

If the tax rate is 35 percent and the discount rate is 7 percent, what is the NPV of this project?

  What is the probability that the indicator would be correct

What is the probability that the indicator would be correct 35 or more times in 44 years? What does this tell you about the usefulness of this indicator?

  Concept of innate good

In a paper of 1,000 - 1,250 words, support or debate the concept of innate good through the following lenses of personality development:

  Share j has a beta of 135 and an expected return of 17

share j has a beta of 1.35 and an expected return of 17 while share k has a beta of 0.8 and an expected return of 10.

  Identify each of the following organizational

identify each of the following organizational characteristics with the organizational form or forms with which it is

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