Determine good price for the bond

Assignment Help Corporate Finance
Reference no: EM1347439

You have been offered a bond for $1250. The bond pays $60 semi-annual interest and will mature in 12 1/2 years. If the current market rate for a similar new bond investment is 8%. Is this a good price for the bond?

Reference no: EM1347439

Questions Cloud

Construct a price weighted index : Three (3) stocks have share values of $12, $75, and $30 with total market rates of $400 million, $350 million & $150 million respectively.
Expalin performance and motivation theory : Expalin Performance and Motivation Theory - How does a leader leverage them as he or she focuses on improving business results
Show the discussion of theories of change management : Show the discussion of theories of change management - Change management is essentially a communication strategy that reduces anxiety and concerns in those being affected in order to help them accept change.
Question on cvp computation : Determine the break even point in units. The company has a capacity of 150,000 units and is currently at two thirds of its capacity. The sales manager believes the company could increase sales by 8,000 units if advertising expenditures are increa..
Determine good price for the bond : Suppose you have been proposed a bond for $1250. The bond pays 60$ semiannual interest and will mature in twelve and half years. If the current stock market rate for a similar new bond investment is 8 percent.
Find the current delivered by the generator have increased : A capacitor (capacitance C1) is connected across the terminals of an ac generator. Without changing the voltage or frequency of the generator, a second capacitor (capacitance C2) is added in series with the first one.
Write a paper on capital structure equity : Prepare a paper on a TOPIC IN THE NEWS and apply the finance concepts you have learned in this course to it - Time Value of Money
What is the new temperature of ideal gas : As part of a safety investigation, two 1700 cars traveling at 18 are crashed into different barriers. Find the average forces exerted on (a) car that hits a line of water barrels and takes 1.80 to stop, and (b) car that hits a concrete barrier and t..
Example of cost-volume-profit analysis : Can you give an example of cost-volume-profit analysis using this techniques in your organization or in your past experience?

Reviews

Write a Review

Corporate Finance Questions & Answers

  Evaluate and interpret the two profit variances

Evaluate and interpret the two profit variances and evaluate and interpret the two revenue variances

  Determine the moral point of view

Does the essay by Wayne F. Cascio, Decency Means More than Always Low Prices: A Comparison of Costco to Wal-Mart's Sam's Club, tend to support the position of Milton Friedman or R. Edward Freeman?

  Calculate the dollar amount of acceptable accounts

Springer manufactures wants to borrow $80,000 from a local bank using accounts receivables to secure its loan. The banks procedure is to accept as collateral accounts that are normally paid within thirty days

  Problem on minimum wage

Have you worked for the minimum wage if so, for how long? Would you favor rising the minimum wage by a dollar? By two dollars? By five dollars? Describe your answer.

  Finding risk free portfolio

Assume you plan to make a portfolio with two (2) securities: security A and security B. A has an expected return of 35 percent with a standard deviation of 22 percent. B has an expected return of 20 percent with a standard deviation of 9 percent.

  Calculate the monthly car payments

You are planning buying a new, $15,000 car, & you have $2,000 to put toward a down payment. If you can negotiate a nominal yearly interest rate of 10% & finance the car over 60 months,

  Purpose a time line presenting after-tax operating cash flow

Effect of capital structure on companies value per share - purpose a time line presenting the after-tax operating cash flows

  Prepare a worksheet with a data table

Computation of Break-even-point in units and prepare a worksheet with a  data table  (Hint: look in the book for the data table)

  Evaluate what is qms weighted average cost of capital

Evaluate what is qms weighted average cost of capital -  target capital structure for qm industries is 35% common stock

  Vertical and horizontal analysis of the balance sheets

Vertical and Horizontal analysis of the Balance Sheets for the past three years (all yearly balances set as a percentage of total assets for that year).

  Interaction of the balance sheet and income statement

Internal financial data is not available to public, so we have to rely on external data for our analysis. Review the financial statements for 2 years for your firm which is Walgreens and another firm which is CVS in the same industry.

  Find the expected market price after repurchase

Multiple choice questions on Market price and Stocks - Find the expected market price after repurchase?

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