Suppose you decide to invest in corporate bonds

Assignment Help Financial Management
Reference no: EM13875268

Choose one of the following topics and present your analysis, which may include your personal opinions:

Suppose you decide to invest in corporate bonds. Accordingly, you visit a bond store. You see 3 bonds on the shelf. One is priced at $1,015.53, another is priced to sell at $1,300.00, and a third is selling at a discounted amount of $876.06. All have a $1,000.00 face value, and carry equal risk. From your reading, and from class lecture, you know that you will be earning the same rate on your investment, regardless of which bond(s) you purchase. But you have a friend with you, who doesn't understand how you can possibly earn the same interest rate, due to the difference in purchase price. How will you explain this concept to him or her?

Using the Internet, the City U library, or any other source, research the meaning and history of "par value" as it pertains to common stock. Is this term still relevant to stockholders' equity today, or is it merely an anachronism, an unnecessary carryover from the past, much like an old TV antenna we're too lazy to remove from the roof of our house?

Reference no: EM13875268

Questions Cloud

What is the meaning of value-added services : What is the meaning of value-added services as it pertains to patient care services, and the major reasons why it matters to add value to patient services.
What is meant by the term investment center : What is meant by the term investment center? How is the financial performance of investment centers measured? What are the three financial-performance measures for investment centers?
The efficient frontier indicates : The "efficient frontier" indicates:
What am i suppose to write for 4p''s of marketing for marina : What am i suppose to write for 4p's of marketing for marina bay sand singapore? as i am not suppose to write more than 300 words for total of 4p's?
Suppose you decide to invest in corporate bonds : Suppose you decide to invest in corporate bonds. Accordingly, you visit a bond store. You see 3 bonds on the shelf. One is priced at $1,015.53, another is priced to sell at $1,300.00, and a third is selling at a discounted amount of $876.06. But you ..
Find an interesting article about finance and share : Find an interesting article about finance and share with the class! Possible topics include but are not limited to the equity markets, bond markets, quantitative easing, global trade, emerging markets, and frontier markets. Be sure to share your key ..
Explain the importance of measuring competencies : Include the following: Explain why training and education are vital in health care. Explain the importance of measuring competencies.
What is their expected required return of common equity : Oak Enterprises has a beta of 1.2, the market return is 8%, and the T-bill rate is 4%. What is their expected required return of common equity?
Should adhesive unit purchase t-bar inside or outside firm : From the standpoint of the company as a whole, should the adhesive unit purchase T-Bar inside or outside the firm? Show calculations to support your answer.

Reviews

Write a Review

Financial Management Questions & Answers

  Future value of an annuity-saving for retirement

Your client is 35 years old; and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $9,000 per year; and you advise her to invest it in the stock market, which you expect to provide an average ret..

  Calculate the operating cash flows for each year

Current sales are $360,000, current assets $80,000, accounts payable $15,000, accruals $5,000, net profit margin of 5% with a 50% dividend payout. If I expect sales to increase by 20% and no fixed assets are needed, what is my external funds requi..

  What is thales japans net translation exposure

What is the translation amount to be shown on American Golfs equity account for the year if the peso is the functional currency? How would your answer change if the dollar were the functional currency?

  Savings account paying interest at the rate

The Pirerras are planning to go to Europe 4 years from now and have agreed to set aside $140/month for their trip. If they deposit this money at the end of each month into a savings account paying interest at the rate of 4%/year compounded monthly, h..

  The exchange rate between the us dollar and the swiss franc

the exchange rate between the us dollar and the swiss franc is sf1.31 and the exchange rate betweent he dollar and the

  What is the change percent

If the actual FY 2011-12 general property revenue is $100,342,726, the adopted FY 2012-13 is $99,217,048, the estimated FY 2012-2013 is $97,046,556, and the proposed FY 2013-14 is $90,703,193, What is the change percent?

  What is the value of stock

Martell Mining Company's ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 7% pe..

  What is the current value of APIs common stock

The board of directors of API, a relatively new electronics manufacturer, has decided to begin paying a common stock dividend to increase the attractiveness of the stock in the free market. The company currently has a beta of 1.5, the rate of return ..

  According to the efficient market hypothesis

According to the efficient market hypothesis, price of actively traded stocks ____.

  What is the cash value of this annuity due at end of year

At the beginning of each period for 10 years, Merl Agnes invests $500 semi annually at 6%. What is the cash value of this annuity due at the end of year 10?

  The paradise shoes company has estimated its weekly tvc

the paradise shoes company has estimated its weekly tvc function from data collected over the past several months as

  Calculate and interpret descriptive statistical analysis

Calculate and interpret descriptive statistical analysis

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