What is the market value of the bond

Assignment Help Finance Basics
Reference no: EM132183824

Question -

A) A US corporate bond was issued 5 years ago and will be matured in 2 years. The bond coupon rate and pays semi-annual coupon payment. Th par value is $1000. If the current interest rate is 10%, what is the market value of the bond?

B) A US corporate bond has a maturity of 10 years and callable in 5 years. The bond's price at issue was $1,050. The bond has a coupon rate of 7% with semi-annual payment. If the callable price of the bond is $1,070, what will be the yield to call (YTC)?

Reference no: EM132183824

Maintenance of the whole

"Society is like an organism, the parts work in harmony to contribute to the maintenance of the whole. A healthy society is one that's public." These statements are consiste

What is the sustainable growth rate

What is the sustainable growth rate for each year?  Based on your analysis of the sustainable growth rate between 2011 and 2015, what are your recommendations for the firm?

What happens to demand and supply and quantity demanded

Explain what happens to demand, supply, quantity demanded, and/or quantity supplied, ceteris paribus, given each of the following events: -  The Fed lowers reserve requireme

Computing stock price with no growth opportunities

One share of Jumanji Inc. currently sells for $42 per share and has just paid an annual dividend of $1.25 per share. The investors in Jumanji expect the stock to earn an ann

Present value of cash stream

1) You will receive 5 payments of 8000 per year, with the first payment starting today. the interest rate is 4%, what is the present value of this cash stream? (SHOW WORK)

What is the 95 percent probability range of returns

Assume that for a period of time, long-term corporate bonds had an average return of 7.1 percent with a standard deviation of 10.2 percent. What is the 95 percent probabilit

Compute leverage ratios and coverage ratios

Liabilities and Off-Balance Sheet Financing - Examine each firm's use of leverage and compare its use of leverage with its competitors. Compute leverage ratios and coverage

What is the implied one-year forward rate

One, two and three year maturity, default-free, zero-coupon bonds have yields-to-maturity of 7%, 8% and 9% respectively. What is the implied one-year forward rate, one year

Reviews

Write a Review

 
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