Corporate bond with a face value

Assignment Help Financial Management
Reference no: EM13910897

A corporate bond with a face value of $1,000 matures in 4 years and has an 8% coupon paid at the end of each year. What is the price of this bond if the yield to maturity is 10.15%?

 (Note that in this case we have annual coupon payments, not semi-annual)

Reference no: EM13910897

Questions Cloud

What is the journal entry : What is the Journal Entry? The office manager in San Diego ordered $350 of office (operating) supplies from Staples. While on the way back from a delivery, one of the warehouse staff picked up the Staples order and brought it to GBI’s office.
What is weighted average cost of capital : Jack’s Construction Co. (JCC) has 80,000 bonds outstanding that are currently selling at par (face) value. Bonds with similar characteristics are currently yielding 8.5%. The company also has 4 million shares of common stock outstanding. What is Jack..
What is a reverse 911 service : What is a reverse 911 service? Give two examples of how such a system might be used.
Prepare a job cost sheet for each job worked : Widmer Watercraft's predetermined overhead rate for year 2013 is 200% of direct labor. Information on the company's production activities during May 2013 follows.
Corporate bond with a face value : A corporate bond with a face value of $1,000 matures in 4 years and has an 8% coupon paid at the end of each year. What is the price of this bond if the yield to maturity is 10.15%?
Identify two approaches to securing the transmission : Identify two approaches to securing the transmission of confidential data.
Evaluating project for ultimate recreational tennis racket : You are evaluating a project for The Ultimate recreational tennis racket, guaranteed to correct that wimpy backhand. You estimate the sales price of The Ultimate to be $400 and sales volume to be 1,000 units in year 1, 1,250 units in year 2, and 1,32..
Identify four common smartphone platforms : Define the term smartphone. Identify four common smartphone platforms.

Reviews

Write a Review

Financial Management Questions & Answers

  Financial advisors each year to earn return

Billions of dollars are paid to financial advisors each year to earn a return that is superior to what an individual could earn on his or her own. John Bogle started the Vanguard Company and the first index mutual fund. Please discuss what index fund..

  Examples illustrate about the current and quick ratios

The Jamesway Printing Corporation has current assets of 3.0million.Of this total, 1.0 Million is Inventory, 0.5 million iscash, 1.0 million is accounts receivable, and the balance is marketable securities. What are the current and quick ratios for Ja..

  Assume that you have been asked to place a value on the

assume that you have been asked to place a value on the fund capital equity of besthealth a not-for-profit hmo. its

  Dividend payout

The AA Corporation expects next year's net income to be $20 million. The firm's debt ratio is currently 50%. AA has $10 million of profitable investment opportunities, and it wishes to maintain its existing debt ratio. According to the residual distr..

  Ratios required gearing- gearing and liquidity

Prepare financial ratios for Rolls Royce plc and Costainplc for 2010 &2011 which will enable the financial position and performance of the companies in 2011 to be measured. Ratios required Gearing: Gearing and Liquidity: Current, Acid Test

  The finance department of a large corporation has evaluated

the finance department of a large corporation has evaluated a possible capital project using the npv method the payback

  Identifies and analyzes the most important external

complete the external environmental scan for your organization.nbspperform an internal competitive environmental scan

  Whats the required rate of return on the investors portfolio

An investor is forming a portfolio by investing $40,000 in stock A which has a beta of 1.80, and $10,000 in stock B which has a beta of o.90. The return on the market is equal to 8.5 % and treasure bonds have a yield of 3.5%(rrf). What’s the required..

  Price of the flowers will increase

When Marilyn Monroe died ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star co..

  What the implicit cost of trade credit under these terms

Book Depot Inc. sells on terms of 1/15, net 70. What is the implicit cost of trade credit under these terms? Use a 365-day year. Round the answer to two decimal places in percentage form.

  Analysts expect that the dividend will grow at a rate

NYC Inc. has a current dividend of $3.00 per share (D0 = $3.00). Analysts expect that the dividend will grow at a rate of 25 percent per year for the next three years, and thereafter it will grow at a constant rate of 10 percent per year. The company..

  Compute the penalty that the agent can impose

Compute the penalty that the agent can impose if he concludes that the improper deduction was due to Ms. Hsui's negligence in preparing her tax return. Compute the penalty that the agent can impose if he concludes that the improper deduction represen..

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