Calculate the value of the bond

Assignment Help Finance Basics
Reference no: EM132731429

Assume a company borrows $40 million, where 40,000 bonds are issued to give the company the ability to borrow $1,000 per bond over the next 30 years. If each bond has a face value of $1,000 and coupon rate 5.3%, calculate the value of the bond one year later if the yield to maturity is changed to 4.8% (Assume coupon payments are semiannual).

Reference no: EM132731429

Questions Cloud

What has happened in real terms to aud : If RPPP fails and the AUD only depreciates by 3%, what has happened in real terms to AUD?
Explain the chosen organization or community : Does not identify or explain the chosen organization or community? Does not justify the clinical or business need for a new program to address a health problem?
Explain how jill may have arrived at conclusion : Explain how Jill may have arrived at her conclusion that the special order would result in a financial loss. Also explain the error in Jill's approach
Calculate the return on equity : Calculate the return on equity (ROE) given a profit margin of 4.5%, a return on assets of 6.5%, and an equity multiplier of 1.2
Calculate the value of the bond : If each bond has a face value of $1,000 and coupon rate 5.3%, calculate the value of the bond one year later if the yield to maturity is changed
Explain the female reproductive system : The Female Reproductive System: Identify the anatomical structures of the male/female reproductive systems and diagrams should be included as well.
Examine how accounting standards impact financial measures : Develop an ability to identify and assume an assigned role - illustrate the importance of hidden (undirected) issues that arise from a detailed analysis
What is net proceed in dollar : Using your answer from question (ii), what is your net proceed in dollar (including premium) if the spot rate at the end of 90 days is $0.97/CHF?
Compose a brief paper that gives an overview of your company : Select the company you will be researching for your paper. Compose a brief paper that gives an overview of your company. Your summary should include.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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