### Compute the value of pet food company bonds

Assignment Help Financial Management
##### Reference no: EM131524990

Pet Food Company bonds pay an annual coupon rate of 9.77 percent. Coupon payments are paid semiannually. Bonds have 9 years to maturity and par value of \$1,000. Compute the value of Pet Food Company bonds if the market interest rate on this type of bond is 9.72 percent. Round the answer to two decimal places.

#### Questions Cloud

 Detail the components of state bureaucracy : Detail the components of state bureaucracy and the issues surrounding representativeness and responsiveness Why your companys product should be introduced : Why your company's product should be introduced in this particular country. How you will incorporate the pricing strategies into your promotional plan. Define the major roles of governors : Define the major roles of governors and how their power influences their leadership role and legislative relationship Compute the value of flower valley company bonds : Compute the value of Flower Valley Company bonds if investors’ required rate of return is 10.43 percent. Compute the value of pet food company bonds : Compute the value of Pet Food Company bonds if the market interest rate on this type of bond is 9.72 percent. What is the genetic modification of this species : What is the genetic modification of this species? Why is that an environmental concern? (use examples from the article and lecture) Which testimony is hearsay and likely to be inadmissible : Identify which testimony is hearsay and likely to be inadmissible. Identify which testimony is privileged communication and which is not Explain cytological approach in taxonomy : Explain cytological approach in taxonomy. What is the definition of an expert witness : What is the definition of an expert witness? How does ethics play a large part in testimony by an expert witness

### Write a Review

#### A treasury bill has a bid yield

A Treasury bill has a bid yield of 3.46% and an ask yield of 3.4%. The bill matures in 120 days. Assume a face value of \$1,000. What is the least you could pay to acquire a bill?

#### What is the free-cash flow for the machine in year one

You company is deciding whether to keep an existing machine or replace the machine with a newer model. If the firm buys the new machine, the following information applies. What is the free-cash flow for the machine in year 1?

#### Unadjusted balance in inventory returns estimated

In the current year, Borden Company had sales of @2,030,000 and cost of goods sold of \$1,215,000. Borden expects returns in the following year to equal 8% of sales. The unadjusted balance in Inventory Returns Estimated is a debit of \$9,000, and the u..

#### Find a high and low stock price for the year

If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single benchmark PE ratio, we now have a high and low PE ratio for each year. We can use these ratios to calculate a high and a low stock p..

#### Considering a project with cash inflows

Molly is considering a project with cash inflows of \$811, \$924, \$638, and \$510 over the next four years, respectively.

#### What is the current share price-firm needs to plow back

Metallica Bearings, Inc. is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a \$10 per share dividend in 10 years and will ..

#### Peculiarities of any type of futures contract

Discuss the characteristics or peculiarities of any type of futures contract (not limited to fixed income) traded on an exchange in the US. Please give enough information that the reader is able to get a good idea of the futures contract you are disc..

#### What is the fw for a machine with the details

What is the FW for a machine with the following details. Increase in revenue 10% per year; Life of machine 5 years; Life of project 20 years?

#### Balance shown on the books and the balance in bank account

Float is defined as the difference between the balance shown on the books and the balance in the Bank account

#### What is the current price of this preferred stock

The First Bank of Ellicott City has issued perpetual preferred stock with a \$100 par value. The bank pays a quarterly dividend of \$1.65 on this stock. What is the current price of this preferred stock given a required rate of return of 11.6 percent?

#### Calculate the exercise value of firms warrants

Calculate the exercise value of the firm's warrants if the common sells at each of the following prices: Assume the firm's stock now sells for \$20 per share. The company wants to sell some 20-year, \$1,000 par value bonds with interest paid annually. ..

#### Purchase a currency option to purchase

Today's date is 1st December 2011. Reynolds Manufacturing has just imported \$500,000 of Raw materials from an American company with payment due in three months time. The board are concerned about the adverse economic news relating to the UK econom..