A bond which matures in 14 years has 100000 par value the

Assignment Help Finance Basics
Reference no: EM13476732

A bond that matures in 14 years has a $1,000.00 par value. The annual coupon rate is 9% and the markets required yield to maturity on a comparable risk bond is 13%.

a) The value of the bond if it paid interest annually would be $______(round to nearest cent)

b) The value of the bond if it paid interest semiannually would be?

Reference no: EM13476732

Questions Cloud

How have the ideas of constant improvement processes such : 1. how have the ideas of constant improvement processes such as tqm six sigma and other improvement processes affected
What is the trigger the initiating force behind your : consider either a personal decision you anticipate making sometime in the future or a decision that the organization
What secondary and tertiary measures by the community : case study at least 250 wordsjane is an 18-year-old college student. she lives in the dorm with her roommate sally.
What hazards are present in the natural built and social : case study at least 250 words janice wu a community health nurse is visiting a new client in a nursing home in an
A bond which matures in 14 years has 100000 par value the : a bond that matures in 14 years has a 1000.00 par value. the annual coupon rate is 9 and the markets required yield to
Community health problems in addition to cardiovascular : case study at least 250 words sandville is a small community in texas situated 5 miles from the u.s.-mexico border. the
Now that 7 years have passed and markets required yield to : seven years ago abc corp. issues some 28 year zero coupon bonds that were priced with a markets required yield to
What other dimension aids market segments be measurable : 1.when searching for a supplier which of the following provides the broadest reach of possible suppliers in todays
Shakespeare died over 400 years ago so hiram inserted a : explain your agreement or disagreement with the decision to cite or not to cite explained in each of the following

Reviews

Write a Review

Finance Basics Questions & Answers

  Doing international business

Doing International Business

  How much long-term debt does the firm have

It also has current liabilities of $ 150,000, equity of $ 200,000, and retained earnings of $ 100,000. The marginal tax rate for the firm is 30%. How much long-term debt does the firm have?

  Forms of export financing and major currencies

What are the primary forms of export financing? What steps are involved in each form of international financing? What are the advantages and disadvantages of each form?

  Calculating going rate of interest on bonds

Suppose a car company sold an issue of bonds with a 10-year maturity, a $1,000 par value-Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 6%. At what price would the bonds sell?

  What will the balance on charlene loan be at the end

What will the balance on Charlene's loan be at the end of the fourth year (that is, immediately after Charlene makes her 48th payment on the loan)?

  Calculation of effective interest rate of foreign currency

Calculation of effective interest rate of foreign currency loan due to changes in exchange rates

  What should be the price per share of club stock

Club has a required rate of return of 12 percent. What should be the price per share of Club stock at the beginning of the third year, P2 ?

  For higher profitability and valuation in the financial mark

1.Assess the nature of the operation of each company. Describe the risks that each company seems to face as it strives for higher profitability and valuation in the financial markets.

  Is the canadian dollar selling at a premium or a discount

Assuming purchasing power parity (PPP) holds, what is the cost in the U.S. of a Moosehead beer if the price in Canada is Can$2.50?

  As a pricing analyst for thriftway you are asked to prepare

as a pricing analyst for thriftway you are asked to prepare the analysis of a proposal to use turkey as a loss leader

  What should the yield be on a 1- year treasury bond

The real risk free rate if interest is 4%, inflation premium expected for the next 10 years is 3% and the Maturity risk premium is equal to 0.1 (t-1)% where t is equal to security's maturity in years. What should the yield be on a 1- year Treasury..

  What is the bank cost of preferred stock

Holdup Bank has an issue of preferred stock with a $4.25 stated dividend that just sold for $92 per share.What is the bank's cost of preferred stock?

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