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

Previous Q& A

  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

  Breakeven analysis procrastinators anonymous pa is hosting

mastery problem breakeven analysis procrastinators anonymous pa is hosting their annual convention this coming year in

  Robert gking introduced the new is-lm model and to discuss

please rephrase this followingthe new is-lm modelrobert g.king introduced the new is-lm model and to discuss how it

  Ten rights are required to purchase one share tomorrow the

tricki corp stock sells for 45 rights-on and the subscription price is 35. ten rights are required to purchase one

  Filer manufacturing has 75 millions shares of common stock

filer manufacturing has 7.5 millions shares of common stock outstanding. the current share price is 49 and the book

  What is the net present value of the investment in the

a new furnace for your small factory will cost 4500 a year to install and will require ongoing maintenance

  Compute operating cash flow and change in net working

texas roks inc. is considering a new quarry machine. the costs and revenues associated with the machine have been

Reviews

Write a Review

 

Similar Q& A

  Find the length of prestopinos cash conversion cycle

What is the length of Prestopino's cash conversion cycle and at a steady state in which Prestopino produces 1,500 batteries a day, what amount of working capital must it finance?

  Marian kirk wishes to select the better of two 10-year

marian kirk wishes to select the better of two 10-year annuities c and d. annuity c is an ordinary annuity of 2500 per

  What inflation rate is expected after year 1

f the yield on 3-year Treasury bonds equals the 1-year yield plus 2%, what inflation rate is expected after Year 1?

  What are the risks and rewards associated

Discuss the various types of bonds and how they are used to raise funds by public and private institutions and why is each type of security used, and what are the risks and rewards associated with a particular security?

  Determine the percent of plant capacity

A manufacturer of electronic items provides the following data relating to revenues, costs and plant capacity. The purpose is to find answers to the questions that are of primary concern to the corporation.

  Describe opportunity cost rate

What is an opportunity cost rate, is it used in the discounted cash flow analysis.

  Calculate total real return

Suppose you purchased one of Great White Shark Repellant Co.'s 7 percent coupon bonds one year ago for $870. These bonds make annual payments and mature 11 years from now.

  One-year forward rate

Assume the annual risk-free rate in U.S. is 3%. The annual risk-free rate in Pounds Sterling is 5%. The spot rate of exchange is .625pounds/$. What must the one-year forward rate be between pounds and dollars?

  Company had no amortization charges also no non-operating

Operating costs other than reduction, also $5,402 of depreciation. Company had no amortization charges also no non- operating income.

  What is nominal interest rate on a 7-year treasury security

The maturity risk premium is estimated to be 0.0005 x (t-1), where t = number of years to maturity. What is the nominal interest rate on a 7 year Treasury security?

  Determine the proportion of players

221 million computer and video games were trade in 2002- nearly two games for every United State household. 60% of Americans age 6 or older about 145 million people play computer and video games.

  Discuss the non-rational factors

Discuss the non-rational factors that may have a role in the valuation of stocks and stock market equilibrium. Provide specific examples to support your response.

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