Bond valuation-two bonds in portfolio

Assignment Help Financial Management

Reference no: EM132047701

Bond valuation An investor has two bonds in his portfolio that both have a face value of $1,000 and pay a 8% annual coupon. Bond L matures in 15 years, while Bond S matures in 1 year. Assume that only one more interest payment is to be made on Bond S at its maturity and that 15 more payments are to be made on Bond L. What will the value of the Bond L be if the going interest rate is 4%? Round your answer to the nearest cent. $ What will the value of the Bond S be if the going interest rate is 4%? Round your answer to the nearest cent. $ What will the value of the Bond L be if the going interest rate is 8%? Round your answer to the nearest cent. $ What will the value of the Bond S be if the going interest rate is 8%? Round your answer to the nearest cent. $ What will the value of the Bond L be if the going interest rate is 13%? Round your answer to the nearest cent. $ What will the value of the Bond S be if the going interest rate is 13%? Round your answer to the nearest cent. $

Reference no: EM132047701

Questions Cloud

What is your best estimate of the company cost of equity : If the stock sells for $36 per share, what is your best estimate of the company’s cost of equity?

Purchase price of capital and the rental price of capital : Describe the difference between the purchase price of capital and the rental price of capital. If you knowr the value of marginal product from the ?ow

How does coaching these types of employees present unique : How does coaching these types of employees present unique challenges or modifications in the coaching model presented in this course?

Develop a marketing mix strategy : BSBMKG609 Develop a marketing plan - Review and evaluate marketing opportunities for an organisation and develop marketing activities that reflect strategic

Bond valuation-two bonds in portfolio : Bond valuation An investor has two bonds in portfolio that both have face value of $1,000. What will the value of Bond S be if the going interest rate is 8%

What monetary policies and fiscal policies : How were GDP, inflation, and unemployment affected during 2007-2009 recession, and how does the model show this?

Evaluate efficacy of treatment plans : Analyze factors that influence pharmacokinetic and pharmacodynamic processes in pediatric clients requiring antidepressant therapy.

Government intervention makes the economic outcome : Some economists argue that the government intervention makes the economic outcome even worse.

What is his profit or loss in the futures market : Farmer Jim Beam is trying to decide whether to plant wheat this spring. What is his profit or loss in the futures market?

User Account

All Pages