Find zero coupon bond with par value

Assignment Help Financial Management
Reference no: EM13876257

You find a zero coupon bond with a par value of $10,000 and 14 years to maturity. The yield to maturity on this bond is 5.1 percent. Assume semi annual compounding periods. What is the price of the bond?

Reference no: EM13876257

Questions Cloud

Prepare a flexible budget for hayden corporation : Hayden Corporation provides you with the following information for the month of June:
Frictionless surfaces and perfectly elastic impact : Knowing that after the collision the three balls move in the directions indicated and assuming frictionless surfaces and perfectly elastic impact (that is, conservation of energy), determine the magnitudes of the velocities vA, vB, andvC.
How much more is nancys cash flow worth : Mary is going to receive a 34-year annuity of $9,900. Nancy is going to receive a perpetuity of $9,900. If the appropriate interest rate is 12 percent, how much more is Nancy’s cash flow worth (today)? (Enter rounded answer as directed, but do not us..
Review code for america : Review Code for America (www.codeforamerica.org) and provide a 1 page summary/Report.  The purpose of the assignment is for you to present ways on how you could participate and improve the community in which you live
Find zero coupon bond with par value : You find a zero coupon bond with a par value of $10,000 and 14 years to maturity. The yield to maturity on this bond is 5.1 percent. Assume semi annual compounding periods. What is the price of the bond?
Frictionless surfaces and perfectly elastic impact : In a game of pool, ball A is moving with a velocity v0= v0i when it strikes balls B and C, which are at rest side by side. Assuming frictionless surfaces and perfectly elastic impact (that is, conservation of energy), determine the final velocity ..
Paper - choice theory within reality therapy : Write a 7-page research paper (Choice Theory within Reality Therapy) , not including the cover, abstract, and reference pages. Current APA format is required
Name three costs associated with prevention and appraisal : Name three costs associated with each of the following COQ categories: Prevention, Appraisal, Internal failure and External failure.
Determine the yield-to-maturity and bonds coupon rate : Two years ago, Trans-Atlantic Airlines sold $250 million worth of bonds at $1,000 each. These semi-annual bonds had a maturity of 12 years and a coupon rate of 12.5%. Today these bonds are selling for $1,000. Determine the yield-to-maturity. A semi-a..

Reviews

Write a Review

Financial Management Questions & Answers

  What break-even resale price in three years

What break-even resale price in three years will make you indifferent between buying and leasing?

  How much is in the IRA when Bob retires

Bob makes his first $400 deposit into an IRA earning 8.1% compounded annually on his 24th birthday and his last $400 deposit on his 43rd birthday (20 equal deposits in all). With no additional deposits, the money in the IRA continues to earn 8.1% int..

  What is current share price-the growth rate falling off

Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 24 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter. If the required return is 14 percent, and the company just paid a di..

  Other companies for synergies or grow internally

Should Microsoft increase growth by acquiring other companies for synergies or grow internally? Do they have the infrastructure to grow internally? If they get acquired by a competitor, how will the merger be integrated in regards to culture, overlap..

  Considering the introduction of a new product line

Your company is considering the introduction of a new product line. The initial investment required for this project is $500,000, and annual maintenance costs are anticipated to be $35,000. Annual operating cost will be directly in proportion to the ..

  Semi annual compounding period-what is the price of the bond

You find a zero coupon bond with a par value of $10,000 and 19 years to maturity. The yield to maturity on this bond is 4.1 percent. Assume semi annual compounding periods. What is the price of the bond?

  Describe how the internal rate of return

Describe how the Internal Rate of Return is calculated and describe the information this measure provides about a sequence of cash flows. What is the IRR criterion decision rule? What is the relationship between IRR and NPV and are there any situatio..

  Compute the cost of capital for the firm

Compute the cost of capital for the firm for the following: a. A bond that has a $1,000.00 par value (face value) and a contract or coupon interest rate of 11.7 percent. Interest payments are $58.50 and are paid semi annually. The bonds have current ..

  What are your after tax mortgage payments

You have decided to issue a 30 year fixed rate conventional mortgage to the bank to finance the purchase of a $300,000 home. You are required to make a 20% down payment. The mortgage rate in 5% per year. You will make payments monthly. Please use Exc..

  Compare and contrast the internal rate of return

Compare and contrast the internal rate of return approach to the net present value approach to capital rationing. Which is better? Support your answer with well-reasoned arguments and examples.

  Which two of the six methods used to evaluate projects

Which two of the six methods used to evaluate projects, and to decide whether or not they should be accepted, do you prefer as a financial manager? Explain why you decided on these two and not the other four. List the perceived deficiencies of the fo..

  Calculate the current price per share of the stock

Universal Air is a no-growth firm and has two million shares outstanding. It expects to earn a constant $20 million per year on its assets. If it has no debt, all earnings are paid out as dividends, and the cost of capital is 10%, calculate the curre..

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