calculate the value of the bond, Financial Management

 a.) A bond of Rs. 1000 value carries a coupon rate of 10% and has a maturity period of 6 years. Interest is payable semi-annually. If the required rate of return is 12%, calculate the value of the bond.

 

b.)A bond whose par value is Rs. 500 bearing a coupon rate of 10% and has a maturity of 3 years. The required rate of return is 8%. What should be the price of the bond?   

 

Posted Date: 3/13/2013 1:36:15 AM | Location : United States







Related Discussions:- calculate the value of the bond, Assignment Help, Ask Question on calculate the value of the bond, Get Answer, Expert's Help, calculate the value of the bond Discussions

Write discussion on calculate the value of the bond
Your posts are moderated
Related Questions

I am looking for assignment help on the topic Structure and Organization of Treasury. It would be great if anyone help me.

Q. Accounting Principles Board ? Accounting Principles Board (APB) -senior technical committee of AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (AICPA) that issued pronoun

uses and limitations of the marginal weighting system



Significance of Secondary Markets: High liquidity and constant demand in the market need a diversified investor base with different preferences of demand, maturity and risk. Ap

In convertible bonds, bondholders get a right to convert their bonds for a specific number of shares of the bond issuer. This privilege allows bondholders to take

Q. Explain Inventory approach to cash management? This method analysis cash in the same way as engine inventory such that EOQ models may be employed. In such conditions cash

Q. Computation of Value of the Firm? Computation of Value of the Firm (V) & Overall Cost of Capital:- NI                    = EBIT - Interest = 50,000 - 20,000 = 30,000