Semi-annual coupon interest payments

Assignment Help Finance Basics
Reference no: EM131201774

A three-year bond has 8.0% coupon rate and face value of $1000. If the yield to maturity (YTM) on the bond is 10%, calculate the price of the bond assuming that the bond makes semi-annual coupon interest payments

a) $949.24

b) $847.96

c) $1000

d) $1057.54

Reference no: EM131201774

Questions Cloud

Describe a product ideation model or methodology : Research and describe a product ideation model or methodology. Describe the ideation approach and how you might use it in your collaboration assignment for this module.
Does pepsicos portfolio demonstrate good strategic fit : What is your assessment of the competitive strength of PepsiCo's different business units? Does PepsiCo's portfolio demonstrate good strategic fit?
Npv of the alaska purchase : What is the NPV of the Alaska purchase, assuming that you arein 1867 looking forward? (Enter just the number in dollars without the $ sign or a comma and round off decimals.) Hint: Simple payback calculation, but with discounting.
How account of biblical creation can be viewed as a model : Explain how the account of biblical creation can be viewed as a model for innovative and creative leaders when managing chaos. Hypothesize why it is important for leaders both to create and enable chaos as well as a clear sense of purpose in organi..
Semi-annual coupon interest payments : A three-year bond has 8.0% coupon rate and face value of $1000. If the yield to maturity (YTM) on the bond is 10%, calculate the price of the bond assuming that the bond makes semi-annual coupon interest payments
What are the top three strategic goal of your chosen company : What does it tell you about the company, their culture, their direction? The organization's strategic goals. Based on your research, what are the top three strategic goals of your chosen company?
What processes and systems might actually stifle innovation : What particular elements of each organization's culture, processes, and management systems and styles work well to support innovation? Why do you think these organizations have been able to capitalize on innovation and intrapreneurship while others..
Risk-free interest rate : Suppose the risk-free interest rate is 4.6 % a. Having $200 today is equivalent to having what amount in one year? b. Having $200 in one year is equivalent to having what amount today?
Explore the competitive advantage of each company : Evaluate the internal and external environments of each company using an environmental scan. Analyze the competitive advantage of each company. Evaluate the strategies each company uses to create value and gain competitive advantage.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Differentiate between sunk costs and opportunity costs which

Differentiate between sunk costs and opportunity costs. Which of these costs should be included in incremental cash flows and which should be excluded?

  You are faced with a decision to invest 100000 in only two

you are faced with a decision to invest 100000 in only two mutual funds. the two funds are fidelity contrafund fcntx

  Statement of cash flows for cash from financing activities

What would be shown on the Statement of Cash Flows for "Cash from financing activities" based in the information above?

  What annual rate of return is earned on a 5000 investment

what annual rate of return is earned on a 5000 investment when it grows to 9500 in five years? recalculate the rate of

  If the treasury also received 750 million in noncompetitive

in a treasury auction of 2.5 billion par value 91-day t-bills the following bids were submittedbidderbid amountprice 1

  Purchasing british pounds forward

Baxter Inc. expects to pay £1,000,000 90 days from now. It decides to hedge its position by purchasing British pounds forward. The current spot rate of the pound is $1.65

  What is the default risk premium on the corporate bonds

If the liquidity premium is 0.55%, what is the default risk premium on the corporate bonds? Round your answer to two decimal places.

  What is the maximum price you can pay for the car

You want to buy a new car, but you can make an initial payment of only $2,000 and can afford monthly payment of at most $500.

  What is the new market value of the company

Again, Inc. is proposing a rights offering. Presently, there are 450,000 shares outstanding at $90 each. There will be 80,000 new shares offered at $84 each.

  How much should the court invest today assuming end of year

joe won a settlement that will pay him 11000 at the end of each year for the next ten years. if market interest rates

  Why is it important for company abc to know its wacc

Find the Weighted Average Cost of Capital? If Company ABC wanted to lower its WACC, what could it do? Why is it important for Company ABC to know its WACC?

  Write an essay on your short term personal financial and car

Write an essay on your short term personal financial and career goals and the tentative plan on how you will achieve them.

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