Compute the price of the bonds for these maturity dates

Assignment Help Financial Management
Reference no: EM132024796

Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 14 percent annual interest. The current yield to maturity on such bonds in the market is 11 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Compute the price of the bonds for these maturity dates: (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.)

30 Years Bond Price =

17 Years Bond Price =

3 Year Bond Price =

Reference no: EM132024796

Questions Cloud

Assume the interest rate in the market : Assume the interest rate in the market (yield to maturity) goes up to 12 percent for the 10 percent bonds.
What is the firms weighted average cost of capital : what is the firms weighted Average Cost of Capital?
How does web change security for the internet : Much has been made of the new Web 2.0 phenomenon, including social networking sites and user-created mash-ups. How does Web 2.0 change security.
Significant relationship between gender and binge drinking : there a significant relationship between gender and binge drinking (as defined by 5 or more drinks at one sitting)
Compute the price of the bonds for these maturity dates : Compute the price of the bonds for these maturity dates:
What do they say about the health of the project : Estimate the variances and what do they say about the health of the project?
State the null and alternative hypothesis : Use a 0.05 significance level. State the null and alternative hypothesis. Find the Z-score and P-value.
What number of station wagons is sold during a week : There is a 1 percent chance that fewer than what number of station wagons is sold during a week?
Find the conversion price on this bond : A convetible bond is sold with a conversion ratio of 40. Find the conversion Price on this bond.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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