User Account

All Pages

Difference between the price that the bond is going

Assignment Help Finance Basics
Reference no: EM131401584

A company wants to issue a SGD 100 million 10-year straight bond, with a coupon of 5.5% paid semi-annually. The market interest rate for companies of similar standing is currently trading at 7%. At which price is the bond going to be issued, and how much funds are the company actually going to collect?

This is my question. What is the difference between the price that the bond is going to be issued and how much funds the company is actually going to collect?

Reference no: EM131401584

Questions Cloud

What is indicated by fact that correlation is negative : What percent of the variation in January Temperatures can be explained by variation in Latitude?- What is indicated by the fact that the correlation is negative?
Mathematics of portfolio risk by looking at return : Discuss the mathematics of portfolio risk by looking at return, variance, coefficient, and standard deviation. (1 - 2 paragraphs)
Evaluate the importance of the national labor relations : From the first e-Activity, evaluate the overall importance of the National Labor Relations Board. Next, summarize the pertinent details of the case that you have selected, and give your opinion of the Board's decision and the fairness of the outco..
Analyze role of microbes in human disease and public health : Explain the principle of genetic engineering and their applications. Select appropriate methods to study microorganisms. Analyze the role of microbes in human disease and public health.
Difference between the price that the bond is going : This is my question. What is the difference between the price that the bond is going to be issued and how much funds the company is actually going to collect?
Amount of the annual coupon payment : What is the amount of the annual coupon payment for a bond that has 5 years until maturity, sells for $1,060, and has a yield to maturity of 9.39%?
What are limits of new product development and consumer use : What are the limits of new product development and consumer use? What are the threats to common accepted beliefs challenged by new technology?
Which focus area would be the most challenging : There are different categories of weapons of mass effect-chemicals, biological pathogens and toxins, radioactive materials, nuclear devices, and nonconventional high-yield explosives. Out of these, biological weapons are used in a terrorism type ..
Major expansion of its product line : Fijisawa Inc. is considering a major expansion of its product line and has estimated the following cash flows associated with such an expansion. The initial outlay would be $1,800,000,and the project would generate incremental free cash flows of $..

Reviews

Write a Review

Finance Basics Questions & Answers

  How much may josey the granddaughter withdraw at the

a grandmother is setting up a savings account to help fund her granddaughters college expenses. she is putting 40000

  Show the pre-tax earnings, taxes paid and earnings after tax

Suppose you want to compare the earnings from two different legal forms for a company, Corporate and Proprietor. Your pre-tax income is $500,000 in both. However there is a difference in the taxes you pay.

  Different strike prices and expiration dates

IBM corporation is selling at $40.13 per share, and call options begin trading with many different strike prices and expiration dates. What is the minimum value that the premium of any of these call options can take?

  What was your annual rate of return on the stock

If you purchased a share of Mico.com stock on March 1, 1993 for $45 and you sold the stock at $168 on February 28, 1998, what was your annual rate of return on the stock?

  The common stock of the paper co is selling for 4140 a

the common stock of the paper co. is selling for 41.40 a share and offers an 8.2 rate of the return. the dividend

  What is the project depreciation expense

No change innet working capital is expected. Marginal profits will be taxed at a 35 percent rate. If the project's operating cash flow is $1 million, what is the project's depreciation expense? Its net income?

  Computation of initial cash outflow

Computation of initial cash outflow and what is the minimum price at which you should offer to supply the jets

  Daniel sold the bond

Daniel purchased a bond on July 1, 2015, at par of $10,000 plus accrued interest of $300. On December 31, 2015, Daniel collected the $600 interest for the year. On January 1, 2016, Daniel sold the bond for $10,200.

  Calculate the accounting break even point

1. Calculate the accounting break even point. What is the degree of operating leverage at the accounting break even point? 2. Calculate the base case cash flow and npv. What is the sensitivity of NPV to changes in the sales figure? explain what you..

  What are the strengths of the annual rate of return approach

What are the strengths of the annual rate of return approach? What are its weaknesses? Your classmate, Mike Dawson, is confused about the factors that are included in the annual rate of return technique.

  If 1-year rates of return are 20 and interest rates are

if 1-year rates of return are 20 and interest rates are constant what is the 5-year holding rate of

  Find what size order pessimistic decision maker would place

Find what size order an optimistic decision maker would place. What size order would you place if you knew from past experience that each demand level is equally likely?

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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