Calculate the bonds price today

Assignment Help Financial Management
Reference no: EM131524901

General Mills has a $1,000 par value, 14-year to maturity bond outstanding with an annual coupon rate of 9.47 percent per year, paid semiannually. Market interest rates on similar bonds are 8.33 percent. Calculate the bond’s price today.

Round the answer to two decimal places.

Reference no: EM131524901


Write a Review


Financial Management Questions & Answers

  Saving for retirement

You want to begin saving for retirement. You expect to retire in about 45 years. You are confident you can maintain a contribution of $200 into a retirement account each month. The account earns an APR of 3.6%, compounded quarterly. a. How much will ..

  Depreciated by the straight-line method

Eastern Clothing Company is considering manufacturing a new style of shirt, whose data are shown below. The equipment to be used would be depreciated by the straight-line method over its 3-year life and would have a zero salvage value, and no new wor..

  Determine the beta for the portfolio

Suppose that a portfolio consists of the following stocks: Stock Amount Beta Chevron $20,000 0.70 General Electric 40,000 1.30 Whirlpool 40,000 1.10 The risk-free rate (r f ) is 5 percent and the market risk premium (r m – r f ) is 8.8 percent. Deter..

  Based on any method for assessing risk

A firm is considering the purchase of an asset whose risk is greater than the current risk of the firm, based on any method for assessing risk. In evaluating this asset, the decision maker should. Increase the IRR of the asset to reflect the greater ..

  Average annual returns and risk premiums

The rates of return by security classes shown in the slide deck on Risk and Return, titled "Average Annual Returns and Risk Premiums: 1926-2010, is strong evidence that investors generally are:

  Account boasts a nominal annual return

Suppose your uncle takes the $40,000 now and wishes to invest it. He calls you because he is confused from an ad he sees. Investments-R-Us is offering the Euler Fund which compounds continuously and the Daley Fund which compounds 360 days per year. “..

  Endowment insurance policy that is about to mature

Several years ago John bought an endowment insurance policy that is about to mature.

  This section provides the opportunity to develop your

this section provides the opportunity to develop your course project. conducting an internal environmental scan or

  Principal differences between net income and cash flow

One of the underlying principles of GAAP is that items on the balance sheet are listed at Book Value as opposed to Market Value. What are Book Value and Market Value? Under what circumstances could they be the same and under what circumstances could ..

  Offered job with an unusual bonus structure

You have been offered a job with an unusual bonus structure.

  How do the concepts of credit and interest

How do the concepts of credit and interest, as incorporated into banking and money lending, help to stimulate economic growth? Give one example of how you think it may have stimulated growth in medieval times, and one example of how it works today.

  The lockbox system is implemented

What will happen to the disbursement float for Amax's customers if the lockbox system is implemented?

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