Determine good price for the bond

Assignment Help Corporate Finance
Reference no: EM1347439

You have been offered a bond for $1250. The bond pays $60 semi-annual interest and will mature in 12 1/2 years. If the current market rate for a similar new bond investment is 8%. Is this a good price for the bond?

Reference no: EM1347439

Questions Cloud

Construct a price weighted index : Three (3) stocks have share values of $12, $75, and $30 with total market rates of $400 million, $350 million & $150 million respectively.
Expalin performance and motivation theory : Expalin Performance and Motivation Theory - How does a leader leverage them as he or she focuses on improving business results
Show the discussion of theories of change management : Show the discussion of theories of change management - Change management is essentially a communication strategy that reduces anxiety and concerns in those being affected in order to help them accept change.
Question on cvp computation : Determine the break even point in units. The company has a capacity of 150,000 units and is currently at two thirds of its capacity. The sales manager believes the company could increase sales by 8,000 units if advertising expenditures are increa..
Determine good price for the bond : Suppose you have been proposed a bond for $1250. The bond pays 60$ semiannual interest and will mature in twelve and half years. If the current stock market rate for a similar new bond investment is 8 percent.
Find the current delivered by the generator have increased : A capacitor (capacitance C1) is connected across the terminals of an ac generator. Without changing the voltage or frequency of the generator, a second capacitor (capacitance C2) is added in series with the first one.
Write a paper on capital structure equity : Prepare a paper on a TOPIC IN THE NEWS and apply the finance concepts you have learned in this course to it - Time Value of Money
What is the new temperature of ideal gas : As part of a safety investigation, two 1700 cars traveling at 18 are crashed into different barriers. Find the average forces exerted on (a) car that hits a line of water barrels and takes 1.80 to stop, and (b) car that hits a concrete barrier and t..
Example of cost-volume-profit analysis : Can you give an example of cost-volume-profit analysis using this techniques in your organization or in your past experience?

Reviews

Write a Review

Corporate Finance Questions & Answers

  Discuss and explain issue of related customer transactions

Discuss and explain issue of related customer transactions not being arms length transactions & risk that transactions with related customers might not be valued at same amount as they would be independent with 3rd party.

  Goal of competition to win

It is hard to believe a competitor is a stakeholder. Is not goal of competition to win & perhaps even dominate the market?

  Find the total annual savings

Total annual savings needed to be calculated considering time value of money - Remember to label each goal and add the required sums for each goal together to find the TOTAL ANNUAL SAVINGS required to fund their goals.

  Find coleman''s overall or weighted average

Computation of cost of capital ignoring the floatation costs - WACC and Find Coleman's overall, or weighted average, cost of capital (WACC)? Ignore flotation costs.

  Evaluation of break even number of students

Evaluation of break even number of students of a college - How many students does the college need to enroll to break even?

  Planning for risk management

Organization must balance performance aims & associated risks. By having a plan, Organization can be better prepared for dealing with risks when they occur.

  Evaluation of various capital structure mix

Evaluation of various capital structure mix - evaluate total value of equity, and shareholders care about value per share

  Determination of projects net present value

If a project's expenditure is 15 million dollar, can you determine the projects net present value if capital is 5 percent, 10%, 15 percent at 1year $5,000,000, 2year $10,000,000.

  Calculate the expected return on each share

The given table provides share return forecasts & associated probabilities for Advanced Limited & Bright Limited.

  Questions based on return on equity

How much must the assets be reduced to bring the TATO to the industry average and questions based on Return on equity

  Investment activities

Analyze and interpret data trends (e.g., unemployment, inflation, real GDP, interest, housing starts) over the most recent three-year period to evaluate the economy and Canada's current economic status.

  Find what is your profit

Do you buy or sell £1,000,000 in the forward market and describe what is your profit in £s if you are correct and the spot rate is £1.00/US$1.65 in a year's time?

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