Calculating the price of the bond

Assignment Help Finance Basics

Reference no: EM132000345

Question: Microhard has issued a bond with the following characteristics: Principal: $1,000 Time to maturity: 20 years Coupon rate: 8 percent, compounded annually Annual coupon payments. Calculate the price of this bond if the stated annual interest rate, compounded annually, is?

Reference no: EM132000345

Questions Cloud

What is the npv of investment : If the appropriate discount rate is 17.1 percent per annum, what is the NPV of this investment (to the nearest dollar)?

Determine the annual cost of purchasing the new technology : Michelin is considering going ‘‘lights-out'' in the mixing area of the business that operates 24/7. Currently, personnel with a loaded cost of $600,000.

What is the payback period : Its cost of capital is 16 percent. What is the payback period for this project (rounded to one decimal place)?

What is the npv of project : If the appropriate discount rate for the company is 15.9 percent, what is the NPV of this project (to the nearest dollar)?

Calculating the price of the bond : Microhard has issued a bond with the following characteristics: Principal: $1,000 Time to maturity: 20 years Coupon rate: 8 percent, compounded annually Annual.

Determining the expected annual return : If the account has an expected annual return of 10%, how much will Anne expect to have in her account on her 65th birthday?

How much are you willing to pay for the stock today if : How much are you willing to pay for the stock today if you require a 14% return on investment

Calculate the amount of dealer profit : Calculate the amount of dealer's profit that Mid-South would recognize in this sales-type lease. (Be careful to note that, although payments).

What is present value of the cost of college education : What is the present value of the cost of college education for 4 children ages 1, 3, 5, and 7.

User Account

All Pages