User Account

All Pages

Cash flow generating asset

Assignment Help Finance Basics
Reference no: EM131401565

A bond is a long termpromissory notewhich promises to pay the holder regular cash flows and at expiration the full face value on the face of the bond.From your other classes you would have been told that bonds are long term liabilities which attract a certain interest rates annually. Here we are taking this further and suggesting that the bond, a long term financial instrument, is an asses and can be valued like any otherlong term cash flowgenerating asset. Would you agree or disagree? Explain fully and remember to describe concepts as you use them including those underlined in the statement above

Reference no: EM131401565

Questions Cloud

Determining the interest rates and arbitrage : The treasurer of a major U.S. firm has $30 million to invest for three months. The interest rate in the United States is .31 percent per month. The interest rate in Great Britain is .34 percent per month. The spot exchange rate is £.573, and the t..
Plan a future proofing data-driven information system : ICT110 Introduction to Data Science Task. You are a new data manager hired by Cookies Limited to help them achieve their strategic goals of customer-centric and data-driven business model. You are required to plan a future proofing data-driven inf..
What is the price of the bond : Avalon Inc. offers a 6 percent coupon bond that has a $1,000 par value, semiannual coupon payments and a yield to maturity of 5.25 percent. The bond matures in 9 years. What is the price of the bond? What will happen to the price if market interest..
What non-effective management traits do you possess : Identify one example each of an effective manager and an ineffective manager. Review your own management style. What effective and non-effective management traits do you possess?
Cash flow generating asset : Here we are taking this further and suggesting that the bond, a long term financial instrument, is an asses and can be valued like any otherlong term cash flowgenerating asset. Would you agree or disagree? Explain fully and remember to describe co..
Effect of the bond new price : You are holding a 30-year, 3 percent annual coupon, $1,000 bond that sells at 2% discount. (a) What will be effect of the bond's new price if market yields fall by 0.05%? What will be the bond's price if the market yields fall by 2%?
Estimated in her original analysis : Today, however, Kellie received new information that indicates the market risk premium, RPm is actually 1% higher than she estimated in her original analysis. Based on this new information, what should be the required rate of return for stock Q?
Four-stock portfolio with a beta coefficient : Willis currently has $120,000 invested in a four-stock portfolio with a beta coefficient equal to 0.8. Willis plans to sell one of the stocks in his portfolio for $48,000, which will increase the portfolio's beta to 1.0. What is the beta coefficie..
Relationship among maturity of financial institutions assets : Discuss the relationship among the maturity of financial institutions assets relative to its liabilities with respect to liquidity risk management.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd