Find the current price of the a bonds with 3 years to

Assignment Help Finance Basics
Reference no: EM13478574

The nickelodeon manufacturing co. has a series of $1000 par value bonds outstanding.Each bond pays interest semi-annually and carries an annual coupon rate of 7%.some bonds are due in 3 years and others are due in 10 years. if the required rate of return on bonds is 10% what is the current price of the A) the bonds with 3 years to maturity B) bonds with 10 years maturity? Explain the relationship between the number of years until the bond matures and it price.

Reference no: EM13478574

Questions Cloud

Aqua pure purchases 50000 gallons of distilled water each : aqua pure purchases 50000 gallons of distilled water each year. ordering costs are 100 per order and the carrying cost
Oreilly moving company has a 1000 par value convertible : oreilly moving company has a 1000 par value convertible bond outstanding that can be converted into 25 shares of
Ct computers inc is considering whether to begin offering : ct computers inc. is considering whether to begin offering customers the option to have their old personal computers
Jemisons cfo estimates that the distribution center will : in the spring of 2010 jemison electric was considering an investment in a new distribution center. jemisons cfo
Find the current price of the a bonds with 3 years to : the nickelodeon manufacturing co. has a series of 1000 par value bonds outstanding.each bond pays interest
Biotechnology is a truly vast subject i would like you to : biotechnology is a truly vast subject. i would like you to read the following articles which presents biotechnology in
Create an equally weighted portfolio of five computer : create an equally weighted portfolio of five computer software stocks. is such a portfolio a diversified portfolio?
Hhow much will recievables balance increase what would be : the new credit manager of kays dpartment store plans to liberalize the firms credit policy.the firm currently
Discuss global economic outlook and research the current : discuss global economic outlook and research the current and long-term for the following countries united states

Reviews

Write a Review

Finance Basics Questions & Answers

  Draw a graph showing the payoff and profit for a straddle

Draw a graph showing the payoff and profit for a straddle using these options.

  Calculating real rate using nominal rate and inflation rate

Assume nominal rate is 14.62% and inflation rate is 5.49%. Solve for the real rate.

  Present value of annuity calculation

Jean will receive $8,500 per year for the next 15 years from her trust. Explain how you resolved this problem, including which table (for example, present value and future value) was employed and why.

  How the u.s. financial markets impact the economy

Describe how the U.S. financial markets impact the economy, businesses and individuals. Explain the role of the U.S. federal reserve, the federal reserve chairman, the board, indicating it's effectiveness in today's ecnomic environment, provide su..

  Calculating multiple cash flows for a year

Calculating multiple cash flows for a year and the amount of the annuity shown below is the amount of each individual cash flow

  What is the effect on the value of the portfolio

Suppose you have a $1 million bond portfolio equally weighted between two bonds, one with duration equal to 4 years and the other with the duration equal to 8 years. What is the effect on the value of the portfolio of an increase in bond yields of..

  Determining financial management

What new problems and factors are encountered in international as opposed to domestic financial management? What does the term arbitrage profits mean?

  One of the brochures boasted ldquothree-day workshop 35000

fred recently became a manager at a local hardware store that employs six managers and 55 nonmanagement employees. as

  Calculation of yield to maturity of bond

Calculation of yield to maturity of Bond and What is the yield to maturity at a current market price of $829? Round the answer to the nearest hundredth

  Why is the residential mortgage a difficult loan

why is the residential mortgage a difficult loan for the financial system to handle?

  What would be katydid before-tax component cost of debt

KatyDid Clothes has a $150 million ($1000 face value) 15-year bond issue selling for 106% of par that carries a coupon rate of 8%, paid semi-annually. What would be KatyDid's before-tax component cost of debt?

  How much should the lender be repaid

If the lender knows he will receive only $9.9 million in payment after 14 years, how might he be compensated for the loss in purchasing power? A decriptive answer is acceptable.

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