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

  Important part of postsecondary budgeting

An example is the difference between an appropriation and an encumbrance. Often, these two are confused with one another. Another important part of postsecondary budgeting includes the knowledge of fixed assets.

  What is the current value of bond

What is the current value of this bond? For discounting purposes, assume an annual percentage rate (APR) OF 10%

  What is netflixs strategy which of the five generic

1 what does your strategic group map of the industry look like? how attractively is netflix positioned on the map?

  Find the yield to maturity on this bond

find the current yield of a 5.65 percent, 8-year bond that's currently priced in the market at $853.75. now, use a financial calculator to find the yield to maturity on this bond (use annual compounding). What's the current yield and yield to mat..

  How would you describe east coast yachts’ cash flows

Which cash flows statement more accurately describes the cash flows at the company?

  Activities based on activity costing system

Northern Distributors Plc. sells bottled water to corporate clients. The cost it pays for each bottle of water is £1.50. Its normal (list) selling price is £1.99 per bottle. Northern has decided to analyse the profitability of each of its five cus..

  A double stem-and-leaf diagram for these data

c) Note that the starred observation in the data set is very different from the others. It is a potential outlier. Construct a box plot for these data to verify that the value 10.1 does, in fact, qualify as an outlier.

  Calculate the impact of the exhibit on company profit

Required: Calculate the impact of the exhibit on company profit. Round to two decimal places.

  What should be the abcs stock price per share

ABC Company has a market/book ratio of 1.2 and a book Value per share of $18.8. What should be the ABC's stock price per share?

  Recompute the effective cost of interest

Summit Record Company is negotiating with two banks for a $100,000 loan. Fidelity Bank requires a 20 percent compensating balance, discounts the loan.

  Compile a cash budget for the months of september

Compile a cash budget for the months of september, october, and november - Farmers delight recevies other monthly income of $3,000

  Calculate the unlevered npv using wacc

A real estate investment of $5,000,000 is expected to generate an NOI of $600,000 per year and will be resold at a cap rate of 8

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