Bonds outstanding with a coupon rate

Assignment Help Financial Management
Reference no: EM131302719

Union Local School Distract has bonds outstanding with a coupon rate of 3.5% paid semiannually and 13 years to maturity. The yield to maturity on these bonds is 2.5% and the bonds have a par value of $10,000. What is the price of the bonds?

Reference no: EM131302719

Questions Cloud

Globalisation produce cultural homogenization : Digital divide essay - 3000 words Why does digital divide continue to be a significant issue and what can be or should be done about it? Choose a specific country to illustrate your argument Or To what extent does globalisation produce cultural  ho..
Bringing healthcare marketing into the twenty-first century : Using the case study "Bringing Healthcare Marketing into the Twenty-First Century". If you were the new director how would you proceed? What would you do during your first four weeks on the job. Create a list of projects for the director and pr..
Explain whether you agree with the given argument : Briefly explain whether you agree with the following argument: Potential GDP is the level of real GDP attained when all firms are producing at capacity. Firms have the capacity to operate 24 hours per day if they have to, but they rarely do.
Analysis of current health care reimbursement policies : The first part of the course project is an analysis of current health care reimbursement policies and their effect on financial management decisions.
Bonds outstanding with a coupon rate : Union Local School Distract has bonds outstanding with a coupon rate of 3.5% paid semiannually and 13 years to maturity. The yield to maturity on these bonds is 2.5% and the bonds have a par value of $10,000. What is the price of the bonds?
Briefly explain whether the is curve will shift : Why does a change in the real interest rate shift the aggregate expenditure line in the 45°-line diagram, but not shift the IS curve?
Rate the risks according to likelihood and impact : Provide the list of risks related to the procured or contracted work. Rate the risks according to likelihood and impact. Include the mitigation strategy for each.
Prepare a premarital agreement for shawn and lori : use the sheet to prepare a Premarital Agreement for Shawn and Lori. They agree to have a provision in the agreement that the agreement will dissolve if they remain married for 10 years. Create the agreement in a Word document.
Key issues that strategic analysis plays in a business : Critically evaluate the key issues that strategic analysis plays in a business or organisation that you are familiar with. Briefly describe the background information of the organisation (or SBU) chosen

Reviews

Write a Review

Financial Management Questions & Answers

  Using the arithmetic average growth rate in dividends

Suppose Stark Ltd. just issued a dividend of $1.93 per share on its common stock. The company paid dividends of $1.60, $1.68, $1.75, and $1.86 per share in the last four years. If the stock currently sells for $50, what is your best estimate of the c..

  What are the cash flows for this replacement project

Five years ago, Domingo Pizzeria Company purchased an oven for $30,000. The projected life of the oven was 10 years with zero salvage value (depreciating at $3,000 a year.) The current book value of the oven is $15,000, whereas the current market val..

  What was annual change in average selling price

In October 2012, the average house price in the United States was $208,600. In October 2004, the average price was $282,300. Required: What was the annual change in the average selling price?

  Homeowners of the remote-controlled security system

You are a researcher at Brave New World Interactive Communications Company. Sales to homeowners of the remote-controlled security system (using the new gesture-recognition microchip) have dropped 40% in the last quarter. Determine what type of inform..

  What is the current intrinsic stock price

Assume that FCF will continue to grow at the growth rate for the last year in the forecast horizon. What is the horizon value at 2017? What is the present value of the horizon value? What is the present value of the forecasted FCF? What is the curren..

  Calculate the gain or loss to the lender

Assume that an investor lends 100 shares of Jiffy, Inc. common stock to a short seller. The bid-ask prices are $32.00 - $32.50. When the position is closed, the bid-ask prices are $32.50 - $33.00. The commission rate is 0.5%. The market interest rate..

  Default-free yield-what would be price of corporate bond

If there is no chance of default what would be the price of this corporate bond? if there is no chance of default, then the required rates of return for money at various horizons is given by the Treasury zero yield curve above. Given these rates, wha..

  Rate of return from capital appreciation during the year

Francis purchased a stock one year ago for $20, and it is now worth $24. The stock paid a dividend of $3 during the year. What was the stock's rate of return from capital appreciation during the year?

  Considering the installation of an irrigation system

After a long drought, the manager of Long Branch Farm is considering the installation of an irrigation system which will cost $100,000. It is estimated that the irrigation system will increase revenues by $20,500 annually, although operating expenses..

  Find the average number of customers waiting for haircuts

Customers arrive at Paul Harrold's Styling Shop at a rate of 3 per hour, distributed in a Poisson fashion. Paul can perform haircuts at a rate of 5 per hour, distributed exponentially.

  Average rates of return on treasury bills-government bonds

Top hedge fund manager Diana Sauros believes that a stock with the same market risk as the S&P 500 will sell at year-end at a price of $59. The stock will pay a dividend at year-end of $4.00. Assume that risk-free Treasury securities currently offer ..

  What is the current value of one share of this stock

The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 16 percent a year for the next 4 years and then decreasing the growth rate to 5 percent per year.  What is the current valu..

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