What is the bond market price

Assignment Help Finance Basics
Reference no: EM132234902

A 5 year bond pays interest annually. The par value is $1,000, and the coupon rate equals 7%. If the market's required return on the bond is 8% then what is the bond's market price?

Reference no: EM132234902

Questions Cloud

Define international marketing : Define international marketing in your own words and give one example of a multinational company that is successful in marketing its products worldwide.
How many years does is take for an annual payment : How many years does is take for an annual payment of 1,600 to grow to 17,000 assuming k=4.5% compounded daily?
Communicate with their current and potential customers : The primary purpose of the corporate web site is to communicate with their current and potential customers, investors, and channel partners
Implied fixed inventory ordering costs : Use the following information to determine the implied fixed inventory ordering costs:
What is the bond market price : The par value is $1,000, and the coupon rate equals 7%. If the market's required return on the bond is 8% then what is the bond's market price?
What is the impact of a stock purchase on a company : Does this suggest another use for excess cash? (And: What are the alternative uses for excess cash? And what does each use imply about the firm?)
What is the proper cash flow to use : What is the proper cash flow to use to evaluate the present value of the introduction of the new chip?
Show the adjusting entries that were made for supplies : Show the adjusting Entries that were made for supplies, prepaid insurance, salaries payable, and unearned revenue on December 31
Planning integral to effective organizational HR Management : How are leadership and planning integral to effective organizational HR Management?

Reviews

Write a Review

Finance Basics Questions & Answers

  Effective annual return

Effective annual return

  Q tapley incs current target capital structure has a target

q tapley inc.s current target capital structure has a target debt ratio dta of 60 percent. the firm can raise up to 5

  What will be the value of the investment in given time

Future value: Larry James is planning to invest $25,200 today in a mutual fund that will provide a return of 0.08 each year.

  Determine the progressives cost of equity and corporate

progressive home health care inc. is a for-profit provider of home health care services in the pacific northwest. at

  The required rate of return on shares

Gamma Ltd is not expecting to pay dividends for four years, at the end of year five a dividend of $2.60 is planned and dividends are expected to grow.

  Name the types of consumer problem-solving processes

Name the types of consumer problem-solving processes. List some products you have bought using each type. Have you ever bought a product on impulse?

  What is the level of incremental sales

Suppose that 60% of FFL's current overnight photo customers, half would start taking their film to a competitor that offers one hour photo pocessing if FFL fails to offer the one hour service. What is the level of incremental sales?

  Form of business organization

Riki, the owner of Simply Sushi, is a sole proprietor. What are the chief characteristics, advantages, and disadvantages of this form of business organization

  What is the firm debt ratio

Dearborn Supplies has total sales of $150 million, assets of $109 million, a return on equity of 30 percent, and a net profit margin of 7.6 percent.

  The future of juvenile corrections

The Future of Juvenile Corrections

  What is the company cost of equity capital

The yield to maturity on the company's outstanding bonds is 9%, and the company's tax rate is 40%. Ortiz's CFO has calculated the company's WACC as 9.96%. What is the company's cost of equity capital?

  What is the payback period for project

This is to result in additional cash flow of 1,255,000 million over the next 7 years. What is the payback period for this project?

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