What is the current price of value bond maturing

Assignment Help Financial Management
Reference no: EM13919760

What is the approximate yield to maturity for a $1000 par value bond selling for $925 that matures in 8 years and pays a 10 percent coupon that is paid semiannually?

11.46 percent    12.16 percent    10.51 percent       5.73 percent

What is the current price of a $1000 par value bond maturing in 12 years with a coupon rate of 14 percent, paid semiannually, that has a YTM of 13 percent?

1,090.44 1,059.95    1,068.62 105.95

Reference no: EM13919760

Questions Cloud

Two WACC components-Debt and Equity : Assume that Marriott uses only two WACC components – Debt and Equity (common stock). Calculate the WACC for each of the three Marriott divisions (lodging, contract services, and restaurants). Be sure to document and explain the reasons for any assump..
Find the fourier transform : Find the Fourier transform X(eiω) of x[n]. Find the N-point DFT X [k] of the finite-length sequence x[n). Find the DFT of x[n] for the case ω0 = 2πk0/N, where k0 is an integer
Describe the organization current hiring needs : Evaluate the cultural issues that need to be addressed. Analyze the ethical considerations that apply. Describe the organization's current hiring needs and projected hiring needs for the coming year. Develop a recruitment plan for fulfilling the comp..
Record the events in general ledger accounts : Record the events in general ledger accounts under an accounting equation.
What is the current price of value bond maturing : What is the approximate yield to maturity for a $1000 par value bond selling for $925 that matures in 8 years and pays a 10 percent coupon that is paid semiannually? What is the current price of a $1000 par value bond maturing in 12 years with a coup..
Assignment on financial statement analysis : Select one (1) of the following publically traded health care organizations: Universal Health Services (NYSE: UHS) or Health Management Associates (NYSE: HMA).
Calculate reed cash conversion cycle : Jim Reed had adopted a very loose working capital policy with higher current assets than industry averages. If he tightens his working capital policy to the averages, what affect will this have on his sales?
Determine needed values for rx : You must work the problem and also find the results using any of the available software (Mutisim, PSpice, Proteus, etc.) You will be asked to explain your results in next Class meeting (oral explanation).
What is the approximate yield to maturity : What is the approximate yield to maturity for a $1000 par value bond selling for $925 that matures in 8 years and pays a 10 percent coupon that is paid semiannually?

Reviews

Write a Review

 

Financial Management Questions & Answers

  Cash flow reporting methods

Of the 4 cash flow reporting methods provided, which method is used in the following scenario? Scenario: Assumptions • Item: The proposal is for the purchase of a new MRI machine • Cost: The machine costs $1,500,000.

  What is the present value of the bond show your work

You buy a government bond that pays interset twice a year. The interset payment is $300 each six months. The bond matures in six years. The face value of the bond is $10,000. The annual market interset rate is 6 percent.

  Dhl and fedex have helped companies throughout the world

dhl and fedex have helped companies throughout the world succeed in the global economy by understanding the customers

  Determine the increase in the annual after-tax profits

Accurately derived the formula to determine the increase in the annual after-tax profits by selecting the optimal transfer price and accurately calculated the optimal transfer price.

  Verify the accuracy of the company finance statement

Which of the following are agency costs? 1. Paying a dividend to each existing shareholders. 2. Purchasing new equipment which increases the value of each share of stock. 3. Hiring outside auditors to verify the accuracy of the company finance statem..

  Do you think this deduction is discriminatory

Individuals who own homes may take a tax deduction for interest paid. Many individuals believe that this tax law discriminates against individuals who rent. Do you think this deduction is discriminatory? Explain and share your thoughts.

  What growth rate is expected for the companys stock price

The stock price of Webber Co. is $68. Investors require an 11 percent rate of return on similar stocks. If the company plans to pay a dividend of $3.85 next year, what growth rate is expected for the company’s stock price?

  Permit the holders to purchase one share of stock

Maese Industries had warrants outstanding that permit the holders to purchase one share of stock per warrant at a price of $25. We are to assume the firm’s stock now sells for $20 per share. The company wants to sell some 20-year, $1000 par value bon..

  What is the annual carrying costs of post card inventory

Cheeseburger and Taco Company purchases 12,885 boxes of cheese each year. It costs $25 to place and ship each order and $7.01 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. What is t..

  Bond outstanding with coupon rate

Union Local School District has a bond outstanding with a coupon rate of 8.09 percent paid semiannually and 5 year to maturity. The yield to maturity on this bond is 8.92 percent, and the bond has a par value of $5,000. What is the price of the bond?

  Different mortality table for annuity benefit calculations

Why do insurers use a different mortality table for annuity benefit calculations than they use for life insurance premium calculations?

  Workers themselves can invent labor-saving machinery

According to Smith, social harmony comes from economic exchanges in which people act.  Which one of the following is a role for government that Smith saw as essential? The division of labor tends to be greatest in less economically developed countrie..

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