What is present value of the bond

Assignment Help Business Economics
Reference no: EM131523790

Consider a $10,000 security that pays a 6.5% coupon rate at the end of every year for nine years. If the annual rate of discount is 3 percent, what is present value of the bond?

Reference no: EM131523790

Questions Cloud

Describe a policy change for which you could advocate : Describe a policy change for which you could advocate. Be sure the policy change would bring about a health-related behavioral and/or a cultural change
Prepare an alternative solution based on your own research : Prepare an alternative solution based on your own research using three to five academic sources from journals, professional organizations, and websites.
Controversial ethical and legal implications : Choose a health care issue with controversial ethical and legal implications that was at the center of a high visibility case in the public domain.
Calculate the net values at the ends of the branches : When you purchase a car, you may consider buying a brand-new car or a used one. A fundamental trade-off in this case is whether you pay repair bills.
What is present value of the bond : If the annual rate of discount is 3 percent, what is present value of the bond?
Which leadership best practices did keda managers engage in : Leadership plays a pivotal role in the success of ERP Projects. Which "leadership best practices" did the Keda managers engage in?
Determine the nominal rate : Determine the nominal rate you would have to be paid on a 20-year municipal bond to be indifferent between it and a 20-year corporate bond
Which direction should the arrow point between two nodes : PrecisionTree will convert any influence diagram into the corresponding decision tree with the click of a button. This provides an excellent opportunity.
The present and the future of religion : "The Present and the Future of Religion" Please respond to the following and include any sources you use:

Reviews

Write a Review

Business Economics Questions & Answers

  Suppose in a country the real growth rate is 4 and the real

suppose in a country the real growth rate is 4 and the real interest rate is 6.a calculate the constant debt-gdp ratio

  Real business cycle theory-long­run aggregate demand

In the real business cycle theory, if long­run aggregate supply increases, then long­run aggregate demand increases by

  An irrigation return flow drain has sampling equipment

An irrigation return flow drain has sampling equipment that can be powered by solar cells or by running an electric line to the site and using conventional power. Solar cells will cost $14,000 to install and will have a useful life of 10 years. Annua..

  Political economy approach to disease

How might "Ghosts in Your Genes" be described as a biomedical, behavioral and /or political economy approach to disease?

  Compare private school system to public school system

In a society in which households differ significantly in income, two processes occur simultaneously that affect where households live: the Tiebout process and the separation process. Explain each. Compare a private school system to a public school sy..

  Firms can have-accounting profits and economic losses

Firms can have: Accounting profits and economic losses, Accounting profits and economic profits, Accounting losses and economic losses, Accounting losses and economic profits.

  Difference between the values of expenditure multiplier

Using the value of MPC = 0.8, and knowing the difference between the values of expenditure multiplier and the tax multiplier, it can be safely stated t hat the reduction of taxes by $40 0 billion (other things staying the same) , Estimate increased l..

  Compute the unemployment rate in august

Discussion on game theory concept, basic application for planning also how game theory is used to model behavior; types of games and how they are played.

  Determined that a rate of return

Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,200, $10,200, and $16,400 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has deter..

  The nash equilibrium will be

In a simultaneous move game, if both charge the low price (LP) they each earn $5K. If both charge the high price (HP) they each earn $10K. If they charge different prices, the one playing LP earns $15K and the other earns $1K. The Nash Equilibrium wi..

  Increased as the demand for skilled labor

According to the text, in recent years the ratio of earnings of the typical U.S. college graduate to the earnings of the typical high school graduate without additional education has: Increased as the demand for skilled labor has decreased relative t..

  Stock returns and retirement account

Stock returns and retirement account: Suppose your retirement account has a balance today of $10,000 and you are 20 years old. Consider how the balance in your account evolves as you age under the different assumptions below. ompute the balance in yo..

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