Valuation a d rates of return, Finance Basics

Assignment Help:

You are called in as a financial analyst to appraise the bonds of Olsen’s Clothing Stores. The $1,000 par value bonds have a quoted annual interest rate of 13 percent, which is paid semiannually. The yield to maturity on the bonds is 10 percent annual interest. There are 25 years to maturity.

a. Compute the price of the bonds based on semiannual analysis.
b. With 20 years to maturity, if yield to maturity goes down substantially to
8 percent, what will be the new price of the bonds?

Related Discussions:- Valuation a d rates of return

Example of payback period method, Example of Payback Period Method Sup...

Example of Payback Period Method Suppose a project costs Sh.80,000 and will produce the following cash inflows as: Cash inflows Accumu

Working capital, Working Capital a) Working capital or called gross wo...

Working Capital a) Working capital or called gross working capital also, refers as current assets. b) Net working capital refers to current assets minus current liabilities

Leverage or gearing ratios, Leverage or Gearing Ratios Leverage or gea...

Leverage or Gearing Ratios Leverage or gearing ratios are as follow: a) Debt ratio = Total debts/Total assets Whereas total debt = fixed charge capital + liabilities.

Determaine the dol and business risk, From the following selected operating...

From the following selected operating date, determaine the DOL. Which company has the greater amount of business risk? Why? Particulars A Ltd

Characteristics of investment - venture capitalists, Characteristics of Inv...

Characteristics of Investment - Venture Capitalists Venture capitalists, will just invest in a company whether there is a reasonable chance such the company will be successful

Assignment, Discuss the applicabilty of an operating cycle to poultry busin...

Discuss the applicabilty of an operating cycle to poultry business(consider broilers)

Draw the network diagram, Draw the network diagram of the following project...

Draw the network diagram of the following project according to the activity list and relationships mentioned below Table 1 Activity Du

Business finance, shares

Determinants of required rate of return, Determinants of Required Rate of R...

Determinants of Required Rate of Return 1.Risk free rate - This is the interest rate such would exist on default free securities like Treasury bills and bonds. Risk free

Computer the fair value of the stock, Future Ltd is a leading music enterta...

Future Ltd is a leading music entertainment company in the country and the stocks of the company are actively traded in the stock exchange. For the year just ended few days back,

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages