Determine the present value or worth of a bond, Financial Accounting

1.) Assume a $1000 face value bond has a coupon rate of 8.5 percent, pays interest semi-annually, and has an eight-year life. If investors are willing to accept a 10.25 percent rate of return on bonds of similar quality, what is the present value or worth of this bond?

Posted Date: 3/29/2013 5:53:55 AM | Location : United States







Related Discussions:- Determine the present value or worth of a bond, Assignment Help, Ask Question on Determine the present value or worth of a bond, Get Answer, Expert's Help, Determine the present value or worth of a bond Discussions

Write discussion on Determine the present value or worth of a bond
Your posts are moderated
Related Questions
Q. Describe Passive Income? Passive Income - Includes income derived from such sources like dividends, royalties, interest, rents, amounts received from personal service contra

natasha kingrey to calculate present value of salary differential for completing mba

Cumulative and substitutional legacies and devises Where a will makes two gifts of unequal amounts to the same person, they are assumed, in the absence of a contrary indication

The construction manager for Acme, Inc. must decide whether to build single-family homes, apartments, or condominiums. She estimates annual profits will vary with the economy, as f

You have observed the following returns over time: Year Stock X Stock Y Market 2006 13% 13%

Since 1968, Dracula Limited has traded in Doncaster, South Yorkshire as a manufacturer of fancy-dress and theatrical costumes. It produces a wide range of general theatrical costum

A company declared a $.50per share cash dividend on December 1,2013. The Company has 20,000 shares authorized, 9,000 shares issued, and 8,000 shares of common stock outstanding. Pr

I have an assignment due in four hours. Is it possible to get an inquiry if at least half of it can be done within that time?

Various types of accounting changes can affect the financial statements of a business enterprise differently. Assume that the following list describes changes that have a material

Refer to the Consolidated Statements of Shareholders' Equity (pp. 62-63), Consolidated Statements of Cash Flow, including an abstract from Note 2, Cash Flow Information (pp. 61 and