Calculate the present value of 1000 zero-coupon bond with 5

Assignment Help Finance Basics
Reference no: EM13478535

Question 1:

Calculate the present value of $1,000 zero-coupon bond with 5 years to maturity if the required annual interest rate is 6%.

Question 2

Consider a bond with a 7% annual coupon and a face value of $1,000. Complete the following table:

Years to Maturity Discount Rate Current Price
_____________________________________________
3 5
3 7
6 7
9 7
9 9
_____________________________________________


What relationship do you observe between yield to maturity and the current market value?

Years to Maturity Yield to Maturity Current Price
__________________________________________________________________
3 5
3 7
6 7
9 5
9 9
__________________________________________________________________

Reference no: EM13478535

Questions Cloud

Explain how a phobia could be called a form of classical : explain how a phobia could be called a form of classical
Te bonds mature in 11 years and have 1000 face value : bonds issued by stainless tubs bear an 8 coupon rate payable semiannually. the bonds mature in 11 years and have a
Suppose the exchange rate between us dollars and the swiss : you are the vice president of international infoxchange headquartered in chicago. all shareholders of the firm live in
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
Calculate the present value of 1000 zero-coupon bond with 5 : question 1calculate the present value of 1000 zero-coupon bond with 5 years to maturity if the required annual interest
Sales and costs in 2013 are projected to be 20 higher than : the 2012 financial statements for growth industries are presented below.income statement
Suppose you bought a five-year zero-coupon treasury bond : 1. suppose you bought a five-year zero-coupon treasury bond for 800 per 1000 face valuea. what is the rate of return on
I need you to write two journals personal entry each one : i need you to write two journals personal entry each one 125 words. the first one about spirituality the second one
Normally acquiring firm pays price which is a premium above : 1. at a firms quarterly dividend meeting held april 9 the directors declared a 0.50 per share cash dividend for the

Reviews

Write a Review

 

Finance Basics Questions & Answers

  What will be its optimal cash return point

The trading cost per sale or purchase of marketable securities to be $35.50 per transaction. What will be its optimal cash return point?

  Evaluating a capital project on a new line of business

A company is evaluating a capital project on a new line of business for the firm. The firm's current cost of capital is 12%. However, another firm, whose principal focus is in the same field, is publicly traded and has a beta of 1.6. The market is cu..

  Find the price the bond with the right adjustments

Find the Price the Bond and Make sure you make the right adjustments to the data

  Explain the interconnectivity of world largest stock markets

Explain the interconnectivity of the world's largest stock markets. Discuss which country you believe has the most influence on the U.S. stock market performance and why. Explain your rationale.

  Find the expected gainloss from forward hedging if you were

dell computers sold a super computer to the institute in italy on credit and invoiced euro5 million payable in six

  What are firm income tax liability and its after-tax income

The Talley Corporation had a taxable income of $485,000 from operations after all operating costs but before (1) interest charges of $97,000, (2) dividends received of $29,100.

  Determine total dollar return on investment

Robin sold 800 shares of a non-dividend paying stock this morning for a total of $29,440. She had buy these shares on margin twelve months ago at cost per share of $35.

  Find the market value of assets

Beckman Engineering and Associates has 25 million shares outstanding. Shares are trading at $8. Beckman Engineering and Associates management plans to raise $60 million to by issuing debt to repurchase shares.

  After completing her residency an obstetrician plans to

after completing her residency an obstetrician plans to invest 12000 per year at the end of each year in a low-risk

  Lender controls used in inventory financing

Determine which of the following is not part of the lender controls used in inventory financing and find the cost of not taking the following cash discounts?

  Discuss how the basic concepts of finance

Discuss how the basic concepts of finance and how it directly impacts your life. Provide specific examples to support your response. Please provide citations.

  What is zhao resulting net payment

Zhao automotive issues fixed rate of 7.00%. Zhao agrees to an interest rate swap in which it pays LIBOR to Lee Financial and Lee pays 6.8% to Zhao. What is Zhao's resulting net payment?

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