Corporate bond with a face value

Assignment Help Business Economics
Reference no: EM13815492

Tara bought a corporate bond with a face value of $20,000 at a discounted price of $18,000. The bond pays a dividend every year payable quarterly. What is the quarterly dividend Tara should get if she hopes to get a 12% return on her investments? Assume the bond matures in 20 years and she will keep the bond till maturity.

Reference no: EM13815492

Questions Cloud

Previously monopolistic on a global scale : Dumping and predatory pricing involve selling at very low prices, even below cost, for the purpose of driving competitors out of business.  If a firm were to succeed it would be a monopoly and could raise prices accordingly. Why would a predatory mon..
Criteria for process of selecting the scheduling technique : The city of Springville is building a new fire station. The city is expanding and is in need of a second fire station closer to the newer areas of the city to ensure shorter response times. The project manager and the project team have been selected ..
If free trade and greater foreign competition causes markets : If free trade and greater foreign competition causes markets that were previously oligopolistic to become monopolistic, is this good for the consumer? Is free trade and competition better for any workers unions that may have existed within the previo..
The cost of common equity : A new common stock issue that paid a dividend of $1.76 million last year. The firm's divendends are expected to grow at 6.1 percent, per year, forever. The price of the stock is currently $27.58. The cost of common equity
Corporate bond with a face value : Tara bought a corporate bond with a face value of $20,000 at a discounted price of $18,000. The bond pays a dividend every year payable quarterly. What is the quarterly dividend Tara should get if she hopes to get a 12% return on her investments? Ass..
High technology manufacturing activity : Why do you think China is now a favor location for so much high technology manufacturing activity? How will China increasing involvement in global trade help that country? How it will help the world develop economies? What potential problems are asso..
Hypothetical prices-quantities demanded of software product : The table below shows the hypothetical prices and quantities demanded of a software product. Assume that the fixed cost of setting up the production of software is $200 and the marginal cost is $5.
Tip of an endoscope could reduce risks : A proximity sensor attached to the tip of an endoscope could reduce risks during eye surgery by alerting the surgeon to the location of critical retinal tissue. A certain eye surgeon expects that by using this technology, he will avoid lawsuits of $0..
Using the midpoint formula for the elasticity of demand : Suppose you had an initial price of 32. Using the midpoint formula for the elasticity of demand, you determine that demand is unit elastic. What was the new price?

Reviews

Write a Review

Business Economics Questions & Answers

  What are the equilibrium price and quantity in this market

Assume the demand function for scooters is given by QD = 20,000 – 10P + 0.2I, where P = price of a scooter, and I = average income of consumers. Also, assume the supply function of scooters is given by QS = 20 P. If the market for scooters is perfect..

  Business incorporate risk into the decision-making process

Identify the different types of risk that a business might encounter in the marketplace and identify whether they are controllable or uncontrollable. How can a business incorporate risk into the decision-making process?

  Calculate the optimal money growth rate needed for the fed

Suppose that people expect the Fed to hit its inflation target. A: Calculate the optimal money growth rate needed for the Fed to hit its inflation target in the long run.

  Describe elasticities and the nature of the two products

A 10% increase in the price of pizza causes a 10% drop in the quantity of both pizza and beer sold. Describe elasticities and the nature of the two products.

  The people of aquilonia deposited half of their currency

The people of Aquilonia deposited half of their currency into the banking system. If banks do not hold excess reserves

  Calculate lilliputs balance of trade

Suppose the country of Lilliput exported 263 billion dollars worth of goods while they imported 477 billion dollars worth of goods in the last calendar year. Calculate Lilliput\'s balance of trade:_____ billions of dollars.

  Determine whether the mean annual consumption

Annual per capita consumption of milk in the U.S. is 21.6 gallons. Being from the Midwest, you believe milk consumption is higher there and wish to support your opinion. A sample of 16 individuals from the Midwestern town of Webster City showed a sam..

  Data on business inventories and unfilled orders

Why do economists attempting to forecast short run future changes in real GDP and employment look closely at data on business inventories and unfilled orders? What conclusion could be drawn if the volume of unfilled orders and average length of deliv..

  Calculate your price elasticity of demand of widgets

Suppose the price of widgets falls from $7 to $5 and consumption of widgets rises from 15 widgets a month to 25 widgets. Calculate your price elasticity of demand of widgets. What can you say about your price elasticity of demand of widgets? Is it El..

  Explain how much saving does he or she do in first period

Illustrate what is the individual's optimal consumption in each period. Explain how much saving does he or she do in the first period.

  Using the midpoint formula for the elasticity of demand

Suppose you had an initial price of 32. Using the midpoint formula for the elasticity of demand, you determine that demand is unit elastic. What was the new price?

  Analyze the determinants of the price elasticity of demand

Analyze the determinants of the price elasticity of demand and determine if each of the following products are elastic or inelastic:

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