Calculate the selling price of a bond

Assignment Help Marketing Management

Reference no: EM13817133

Calculate the selling price of a bond-

Bond indenture

Issue Date: 1/1/2011

Face value: $100,000

Coupon Rate of Interest: 6% annually

Maturity date: 12/31/2013

Additional information

• The market interest rate for bonds of similar risk is 8%.

• Interest is paid out on an annual basis.

• The market price of the bond has yet to be determined.

Part 1: Calculate the present value of the face amount to be received at maturity.

Part 2: Calculate the present value of the interest payments to be paid out periodically

Part 3: Add the figures calculated in parts 1 and 2 together.

Reference no: EM13817133

Questions Cloud

Explain the effect of a discretionary cut in taxes : Explain the effect of a discretionary cut in taxes of $40 billion on the economy when the economy’s marginal propensity to consume is .75. How does this discretionary fiscal policy differ from a discretionary increase in government spending of $40 bi..

Litigation-censures and fines : Research the Internet for recent litigation, censures, and fines involving national public accounting firms. Examples of litigation cases against national public accounting firms include fines by regulatory authorities and censures by professiona..

Explain what makes the character uniquely american : Explain what makes that character uniquely American. Please feel free to think outside the box. There are characters within these novels that may not be legally or technically American but are tremendous examples of the American spirit.

Explain the relative influence of the sun and the moon : Describe how a wave breaks on the shore as it transitions from a deep-water wave to a shallow-water wave. In your answer, be sure to include wave interference, wave refraction, and surf zone. Explain the relative influence of the sun and the moon on ..

Calculate the selling price of a bond : Calculate the selling price of a bond. Calculate the present value of the face amount to be received at maturity

Nominal variables are measured in physical units : Quantity of money demanded is positively related to the value of money and negitively related to the price. Used goods are not included in the Calculation of GDP. Nominal variables are measured in physical units.

Development of nuclear weapons-agreement is a bad deal : After a long period of negotiations, it would appear that the United States and Iran have come to an agreement on the timing and scope of Iran's development of nuclear weapons. Mention and discuss in detail two reasons why the government of Israel th..

Complete the following theories : Career Construction Theory

Why people today can relate to poem or short story : For your new discussion post, write a short essay of at least 300 words that explains why people today can relate to poem or short story.

User Account

All Pages