### How does price of these bonds today compare to issue price

Assignment Help Financial Management
##### Reference no: EM131361183

One year ago, Alpha Supply issued 15-year bonds at par. The bonds have a coupon rate of 6.5% and pay interest annually. Today, the market rate of interest on these bonds is 7.2%. How does the price of these bonds today compare to the issue price.

### Previous Q& A

#### Fundamental differences between special-cause variation

Compare and contrast the fundamental differences between special-cause variation and common-cause variation. Provide one (1) business process example of each variation to support your response.

#### Discuss about the application of tort law application

Do you think the application of tort law application to mental health is different in the us when compared to Bangladesh?

#### What is the percentage change in the bond price

A 9-year bond has a yield of 13.5% and a duration of 8.63 years. If the BOND'S yield changes by 60 basis points, what is the percentage change in the bond’s price? Is this an increase or decrease?

#### Result of the contingent survey

A poll done for Newsweek found that 13% of Americans have seen or sensed the presence of an angel. A contingent doubts that the percent is really that high. It conducts its own survey. Out of 100 Americans surveyed, only 3 had seen or sensed the p..

#### Which alternative should ski boards inc choose

Ski Boards, Inc., wants to enter the market quickly with a new finish on its ski boards. It has three choices: (a) Refurbish the old equipment at a cost of \$800, Which alternative should Ski Boards, Inc., choose if it thinks it can sell more than 3..

#### What is the percentage change in price for zero coupon bond

What is the percentage change in price for a zero coupon bond if the yield changes from 6.5?% to 8?%? The bond has a face value of ?\$1,000 and it matures in 19 years. Use the price determined from the first? yield, 6.5?%, as the base in the percentag..

#### In which areas do you see similarities to our approach

Box 5.1 in your textbook, "Chinese Negotiation Frames", identifies five concepts that someone attempting to negotiate in China should recognize. In which areas do you see similarities to our approach to framing?

#### Sketch the corresponding figure for silicon

Suppose that Figure 23.2a is a sketch of the band structure for aluminum. Sketch the corresponding figure for silicon. Aluminum has 13 electrons, with one in the outermost level, and silicon has 14 electrons.

#### Ten-year zero coupon bonds issued

Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of \$1,000 and interest is compounded semiannually. If similar bonds in the market yield 11.38 percent, what is the value of these bonds?

#### What is the most you would be willing to pay for this bond

You are interested in investing in a five-year bond that pays a 9.38 percent coupon rate with interest to be received semiannually. Your required rate of return is 9.13 percent. What is the most you would be willing to pay for this bond?

### Similar Q& A

#### Discuss the basic assumptions of technical analysis

Discuss the basic assumptions of technical analysis. What is the difference between technical analysis and fundamental analysis? Describe one chart pattern and its potential significance is forecasting market direction.

#### Calculate the depreciation expense

You are given the following information for Gandolfino Pizza Co.: sales = \$45,000; costs = \$21,500; addition to retained earnings = \$8,750; dividends paid = \$1,000; interest expense = \$5,500; tax rate = 35 percent. Calculate the depreciation expense...

#### Suppose the firm uses the npv decision rule

For the given cash flows, suppose the firm uses the NPV decision rule. Year Cash Flow 0 –\$ 148,000 1 68,000 2 71,000 3 55,000 Requirement 1: At a required return of 9 percent, what is the NPV of the project? (Do not round intermediate calculations. R..

#### Value of your stock holdings will do on ex-dividend date

What do you expect the value of your stock holdings will do on the ex-dividend date?

#### Decrease the variance of a portfolio of assets

To decrease the variance of a portfolio of assets, simply add assets with low/small variance. An investor who is in the 33% tax bracket is indifferent between a 9% tax-free muni and a 6% taxable bond. The standard deviation of a portfolio of assets i..

#### Acceptance of juliana

One week after the original offer was made by Juliana, Linda sends a signed acceptance of Juliana's \$15,000 offer. Has the contract been formed? Explain.

#### What is the standard deviation of the stocks returns

You find a certain stock that had returns of 4 percent, -5 percent, -15 percent, and 16 percent for four of the last five years. The average return of the stock for the past year-year period was 8 percent. What is the standard deviation of the stock'..

#### What is meant by expected price of a commodity

Explain carefully what is meant by the expected price of a commodity on a particular future date. - What does the Keynes and Hicks argument imply about the expected future price of oil?

#### Large non-profit health relief organization

Choice five - your role is as the chief administrative officer of a large non-profit health relief organization. After reviewing the course concepts you will identify several issues that directly connect to the written assignment. You are in the role..

#### Expected cash inflows-what is projects discounted payback

Project K costs \$48,152.88, its expected cash inflows are \$10,000 per year for 10 years, and its WACC is 9%. What is the project's IRR? Project K costs \$35,000, its expected cash inflows are \$10,000 per year for 8 years, and its WACC is 9%. What is t..