Coupon bonds on the market-what is current bond price

Assignment Help Financial Management
Reference no: EM13928623

Aloha Inc. has 7 percent coupon bonds on the market that have 14 years left to maturity. If the YTM on these bonds is 8.3 percent, what is the current bond price?

Reference no: EM13928623

Questions Cloud

What rate per quarter is the investment promising : Investment Company offers you an investment that promises to triple your money in 33 months. Interest is compounded quarterly. What rate per quarter is the investment promising?
Parallel aboard the proposed space station : A repairable system consists of three non-identical components A, B,C , all of which must work for system success. When one component fails, no further component failures can occur. Construct the relevant state space diagram and hence evaluate gen..
What is its cash coverage ratio : Cash Coverage, Inc. had net sales of $300,000 last year, and increased its retained earnings by $10,000 for the year after paying a dividend of $2 per share on 10,000 outstanding shares. The tax rate for the company is 40%. The company had cost of go..
What is the percentage of sales forecasting method : What is the percentage of sales forecasting method? What are some of the limitations financial analysts should be aware of in applying this method?
Coupon bonds on the market-what is current bond price : Aloha Inc. has 7 percent coupon bonds on the market that have 14 years left to maturity. If the YTM on these bonds is 8.3 percent, what is the current bond price?
Different types of advertising : Think of a well-known product or company. What are the different types of advertising this product or company does? How do these advertisements create unity?
Target capital structure of common stock : Mullineaux Corporation has a target capital structure of 62 percent common stock, 7 percent preferred stock, and 31 percent debt. Its cost of equity is 12.7 percent, the cost of preferred stock is 5.7 percent, and the cost of debt is 7.4 percent. The..
What was jenkinss depreciation expense : What was Jenkins's 2011 depreciation expense? What was Jenkins's 2011 earnings after taxes (EAT)? What was Jenkins's 2011 after-tax cash flow using Equation 4.1?
Passports-appeals and justice : Amanda Knox was an American student in her early 20's studying abroad at a university in Perugia, Italy. In November 2007 she was arrested, later charged and in 2009 she was found guilty of the murder of her roommate Meredith Kercher. In 2011, an ..

Reviews

Write a Review

Financial Management Questions & Answers

  Expected to pay the dividends

Lohn Corporation is expected to pay the following dividends over the next four years: $15, $12, $11, and $3.50. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 1..

  Compute the current market value of this bond

A bond was issued 3 years ago at a coupon rate of 6%. Since then, interest rates have declined to 4%. The bond matures 20 years from today. Compute the current market value of this bond.

  Prepare a wac io and po tranche

Prepare a WAC IO and PO tranche to give a 5.75% deal coupon. Create a PAC class (A-1) with an initial collar of 50%-200% PPC, assuming base case defaults.

  The risk-free rate of return

The beta of M Simon Inc., stock is 1.8, whereas the risk-free rate of return is 0.08. If the expected return on the market is 0.15, then what is the expected return on M Simon Inc?

  The yield to maturity on a bond is the rate of return

The yield to maturity on a bond is the rate of return that equates to the present value of the bond's future cash flows with the bonds

  Sensitivity of bond price-respect to ytm-stock valuation

Sensitivity of Bond Price With Respect to YTM, Coupon Rate, and Maturity you have a bond with these features: Coupon rate: 10% annual. Coupon payment frequency: semiannual. Calculate last year’s actual return for this firm using historical prices fro..

  Financial ratio becomes more important to analyze

At the end of the growth phase the following financial ratio becomes more important to analyze

  The statement of cash flows-changes in Balance Sheet account

The Statement of Cash Flows on page 2.1.6 presents how changes in Balance Sheet accounts will affect a company’s cash balance. Refer to that information and discuss how an increase in your company's accounts payable from one period to the next is a m..

  Smith earned during the time he held the t-bill

Smith buys a 182-day US T-Bill at a price which corresponds to a quoted annual rate of 182-day T-Bills of 10%. 91 days later smith sells the T-Bill at which time the prevailing quoted annual discount rate of 91-day T-Bills is also 10%. Find th..

  The current cash flows as a dividend to its shareholders

The firm you are CEO if has a current period cash flow of 1.75 million and pays no dividend. The present value of the company’s future cash flows is $25.0 million. Suppose you and the board announce a plan to pay out 40 percent of the current cash fl..

  Calculate some valuation ratios like price-book value

Put a value on both the Target and JCPenney. Calculate some valuation ratios like Price/Book Value, Price/Earnings Per Share (make sure you use fully diluted share numbers), Price/EBITDA Per Share.

  What is inflation rate if nominal return-coupon rate of bond

Cohen has issued a bond with the following characteristics: Par: $1,000; Time to maturity: 15 years; Coupon rate: 7%; Semi annual payment. What is the price of the bond if the YTM is 9%? The Pane bond has 11.5 years to maturity, a YTM of 7.6%, and a ..

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