Examine the fair present value of the bond

Assignment Help Finance Basics
Reference no: EM131949950

Question: BSW Corporation has a bond issue outstanding with an annual coupon rate of 7.8 percent paid quarterly and four years remaining until maturity. The par value of the bond is $1,000. Determine the fair present value of the bond if market conditions justify a 11.5 percent, compounded quarterly, required rate of return. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM131949950

Questions Cloud

Reorganization is a fact of corporate life today : Reorganization is a fact of corporate life today. Often names are changed, positions eliminated, and organization charts redrawn.
What is standard deviation of these returns : An asset had annual returns of 7.2, 11.5, 10.5, and 7.5 percent, respectively, for the past four years. What is the standard deviation of these returns?
Draw the interface structure design : Draw the Interface Structure Design (ISD) for an ATM for any local bank that shows how a user would navigate among the interfaces
How many units of work-integral-process will beta at station : Demand is forecasted at having to refurbish 233 computers per week. ITS is unsure that they can deliver on the promise.
Examine the fair present value of the bond : Determine the fair present value of the bond if market conditions justify a 11.5 percent, compounded quarterly, required rate of return.
How businesses incorporate it to realizing set objectives : What is competitive advantage and how businesses incorporate it to realizing set objectives.
Discuss broader implications of writing : Discussing the broader implications of writing with an authoritative voice - create what they might say to one another and what you would say
Challenges and opportunities inherent in a global : A discussion of how inclusive leadership can be applied in order to meet the challenges and opportunities inherent in a global environment.
What is the total value added from debt financing : The BSC Co. was planning to raise $2.5 million in perpetual debt at 11%. However, they just received an offer from the governor of a nearby state to raise.

Reviews

Write a Review

Finance Basics Questions & Answers

  Find the future values of fv of $400 and annuities described

Find the future values of the following ordinary annuities: a. FV of $400 each 6 months for 5 years at a nominal rate of 12 percent, compounded semiannually. b. FV of $200 each 3 months for 5 years at a nominal rate of 12 percent, compounded quarterl..

  Compute most popular capital budgeting alternative to npv

calculate the most popular capital budgeting alternative to the npv the internal rate of return irr and explain how the

  What is the expected payout ratio

Bike Inc.'s expected net income for next year is $1 million. The company's target and current capital structure is 40% debt and 60% common equity.

  What is twindles cost of retained earnings

Analyst's expect Twindle's dividends to grow by at least 5% per year for the next 5 years. Using the capital asset pricing model, what is Twindle's cost of retained earnings?

  What is the equity value and debt to value ratio

Edwards Construction currently has debt outstanding with a market value of $ 90,000 and a cost of 9 percent. The company has an EBIT of $ 8,100 that is expected to continue in perpetuity. Assume there are no taxes.

  Problem set week three complete the problems below and

problem set week three. complete the problems below and submit your work in an excel document.be sure to show all of

  Use the arithmetic average

What rate of return would you expect on a 5-year Treasury security, assuming the pure expectations theory is valid? Disregard cross-product terms, i.e., if averaging is required, use the arithmetic average.

  By how much would receivables decline

The firm's new CFO believes that the company could reduce its receivables enough to reduce its DSO to the benchmarks' average. If this were done, by how much would receivables decline? Use a 365-day year.

  What are some of the basic requirements of a successful

What are some of the basic requirements of a successful turnaround plan?

  What is the yield on the company bonds

ACC00716 Finance Assignment. What is the yield on the company's bonds? How would the yield have been different if the company's bonds had been shorter term

  Under what conditions would you use a t-test as opposed to

1.under what conditions would you use a t-test as opposed to a z-test? can you use the t-table to determine the

  Would this expansion create value for brook enterprises

Would this expansion create value for Brook Enterprises? Perform a NPV (net present value) analysis.

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