Compute the value of pet food company bonds

Assignment Help Finance Basics
Reference no: EM131380301

Finance: Value of the Bond Semi-Annually)

Question

Pet Food Company bonds pay an annual coupon rate of 8.62 percent. Coupon payments are paid semiannually. Bonds have 9 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 bond is 11.52 percent.

Reference no: EM131380301

Questions Cloud

Is this an area where gaap should be converged with ifrs : How do the rules for determining the impairment of long-lived assets explained in the chapter contribute to the possibility of audit deficiencies? Is this an area where GAAP should be converged with IFRS, or vice versa?
Most likely cause stagflation : What theory suggests that learning material on your own would not generate the same benefits as those achieved by formally attending classes and receiving a degree? Which of the following would most likely cause stagflation:
Comment on the relationship between your two scatter plots : Using the same variables as the previous exercise, provide a two-dimensional scatter plot, with an overlay of binned silhouette values, as shown in this chapter. Comment on the relationship between your two scatter plots.
Grays accounting values establish basis for financial report : How do Gray's accounting values establish a basis for financial reporting in countries with different cultural systems?
Compute the value of pet food company bonds : Coupon payments are paid semiannually. Bonds have 9 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 bond is 11.52 percent.
How might the elevator speech be improved : Put yourself in the shoes of their perspective employer. How might he or she respond or follow up on your classmates' speech? How might the elevator speech be improved?
Generate a silhouette plot of your cluster model : Calculate the mean silhouette values for each cluster, as well as the overall mean silhouette for the cluster model.
Describe what international policing agencies are doing well : You will examine the global criminal perspective of two types of transnational crimes. Chapter 2 in the text discusses domestic crime, transnational crime, and justice. Find additional credible sources to assist in your evaluation of international..
Managerial style and earnings management techniques : How might earnings management practices serve to project the managerial style of firms in managing the earnings of the firms?

Reviews

Write a Review

Finance Basics Questions & Answers

  Payments of 25000 at the end of each quarter and then pay

suppose a bank offers to lend you 10000 for 1 year on a loan contract that calls for you to make interest payments of

  The anticipated constant growth rate for dividends

A share of stock is currently selling for $31.80. If the anticipated constant growth rate for dividends is 6% and investors are seeking a 16% return, what is the dividend just paid?

  What is the corporate tax paid by a firm with taxable income

What is the corporate tax paid by a firm with taxable income of $300,000, given the following tax tables.$0 - $50,000 15%$50,000 - $75,000 25%$75,000 - $100,000 34%$100,000- $335,000 39%

  Wesson metals has an outstanding loan that calls for equal

wesson metals has an outstanding loan that calls for equal annual payments of 9768.46 over the life of the loan. the

  What is the expected return on microsoft

Microsoft's beta is 1. The risk free rate of return is 2%. If the expected return on the market is 12 percent, what is the expected return on Microsoft?

  Why might two calls or puts alike in all respects

Explain why a call option with zero exercise price is equivalent to the underlying stock, assuming no dividends on the stock during the life of the option?

  Which one of the following is an example of systematic risk

Which one of the following is an example of systematic risk?

  What is the factorys present value

A factory forecasts to produce the following cash flows:Year 1 - $6,516, Year 2 - $7,000, Year 3 - $11,400, Year 4 onward in perpetuity - $12,000. If the cost of capital is 6%, what is the factorys present value?

  What factors cause the phillips curve to shift

A columnist in the Wall Street Journal argues: "Whether you're a borrower or a saver, what matters isn't the nominal interest rate but the ‘real,' post-inflation rate of return." Do you agree? Briefly explain.

  Explain the differences showing appropriate calculations

There is also the option of taking an annuity, which would be one equal payment each year for 30 years. Explain the differences showing appropriate calculations. Do not consider taxes at this time. Include your opinions.

  Do you approve a program with a favorable rate of return

do you approve a program with a favorable rate of return and net present value that exceeds the governmental entitys

  What recommendations would you make to jim sinegal

what recommendations would you make to jim sinegal regarding the actions that costco management needs to take to

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