A corporate bond with a beta of 02 will pay off next year

Assignment Help Finance Basics
Reference no: EM13567655

A corporate bond with a beta of 0.2 will pay off next year with 99% probability. The risk-free rate is 3% per annum, the risk-premium is 5% per annum. What is the price of this bond, and its promised rate of return?

Reference no: EM13567655

Questions Cloud

Outside products company bought inside products division in : outside products company bought inside products division in 2012 and appropriately recorded 700000 of goodwill related
According to william james in the book the varieties of : according towilliam james in the book the varieties of religious experience what is personal religion? what does he
Assume that on september 1 office depot had an inventory : assume that on september 1 office depot had an inventory that included a variety of calculators. the company uses a
Bisson furniture uses a process cost system to account for : bisson furniture uses a process cost system to account for its chair factory. all the materials are added at the
A corporate bond with a beta of 02 will pay off next year : a corporate bond with a beta of 0.2 will pay off next year with 99 probability. the risk-free rate is 3 per annum the
The west division of shekarchi corporation had average : the west division of shekarchi corporation had average operating assets of 623000 and net operating income of 90000 in
A corporate bond with a beta of 02 will pay off next year : a corporate bond with a beta of 0.2 will pay off next year with 99 probability. the risk-free rate is 3 per annum the
Bart received 500 from his employer because he developed an : excludable gifts. which of the following would be includible in gross income?alice appeared on a tv quiz show and
A companys current net operating income is 22000 and its : a companys current net operating income is 22000 and its average operating assets are 87000. the companys required rate

Reviews

Write a Review

Finance Basics Questions & Answers

  Does such an agreement make you both better off

If you need 350 gallons to survive the winter, how much difference does the potential price variance make to your heating bills?

  Determine the value of a share

A company has an expected dividend next year of $1.20 each share, a zero growth rate of dividends, and a required return of 10%. The value of a share of the company's common stock;

  Calculate the wacc

Calculate the WACC

  What is the companys average balance in accounts payable

What is the company's average balance in accounts payable and accounts receivable?

  What intial salary would ben need to receive to make him

ben bates graduated from college six years ago with a finance undergrad degree. although he is satisfied with his

  What is the nominal dollar amount of your last withdrawal

How much can you withdraw each month from your account in real terms assuming a 25-year withdrawal period? What is the nominal dollar amount of your last withdrawal?

  What is the required return

The next dividend payment by Blue Cheese, Inc., will be $2.08 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. If the stock currently sells for $42 per share, what is the required return?

  What is the stocks predicted return

what is the stock's predicted return? Round your answer to two decimal places.

  What is the bank cost of preferred stock

Holdup Bank has an issue of preferred stock with a $6.15 stated dividend that just sold for $98 per share. What is the bank's cost of preferred stock?

  Key financial information

Determine what type of key financial data are available at the page you entered? Write one paragraphs describing what information can be obtained under each "hot link".

  For a given amount interest rate and number of years which

for a given amount interest rate and number of years which of the following will yield the highest number?a. future

  Find the mean and standard deviation of these thickness

An assembly-line machine turns out washers with the following thickness (in millimeters): 1.20 1.01 1.25 2.20 2.58 2.19 1.29 1.15 2.05 1.46 1.90 2.03 2.13 1.86 1.65 2.27 1.64 2.19 2.25 2.08 1.96 1.83 1.17 2.24 Find the mean and standard deviation ..

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