How much could that bond be sold for today

Assignment Help Finance Basics
Reference no: EM13271747

A 10 year, 6% semiannual, $1,000 bond was issued and immediately the current market rates rose to 8% (compounded semi annually). How much could that bond be sold for today?

Reference no: EM13271747

Questions Cloud

How often should a business review financial information : how often should a business review financial information against the financial objectives of the business? give detailed reasons for your respense.
How to avoid manager mishaps : How to avoid manager mishaps? By defining new set of leader rules and core values and imposing it by fiat from the top down? What other ways to avoid manager mishaps?
How much voltage should the battery have to stop the object : In a typical Hollywood movie stunt, a person jumps off a building and lands on a cushion to safely stop. How much voltage should the battery have to stop the object as it reaches the ground
Discuss manets relationship with historical paintings : discuss manets relationship with historical paintings. What examples did he follow and in what ways did he radically break from those examples?
How much could that bond be sold for today : A 10 year, 6% semiannual, $1,000 bond was issued and immediately the current market rates rose to 8% (compounded semi annually). How much could that bond be sold for today?
Calculate vout of the frequency spectrum of a triangle wave : Calculate Vout (f0), Vout (3f0), Vout(5f0), and Vout(7f0) of the frequency spectrum of a triangle wave (A = 10 V and T = 1 ms) passed through a low-pass R-C filter (R = 10 k-ohm and C =5 nF).
Depict a line-bond structure for a compound with a molecular : Draw a line-bond structure for a compound with a molecular formula of C5H14 and one carbon with only one hydrogen attached to it.
Find the magnitude and sign of the charges : A square with sides of length L has a point charge at each of its four corners. Find the magnitude and sign of the charges Q such that each of the +1.00 µC charges experiences zero net force
Explain which project should be selected : Project A and Project B will both cost $10,000. Project A returns $3,000 a year for 7 years. Project B returns $5,000 a year for 2 years. Using the payback period explain which project should be selected?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the net present value of the project

The project has an initial cost of $4.3 million and produces cash inflows of $1.27 million a year for 5 years. What is the net present value of the project?

  What was the annual rate of return on your investment

You purchased a piece of property for $30,000 nine years ago and sold it today for $83,190. What was the annual rate of return on your investment?

  Calculate the expected return and standard deviation

Stock A has expected return of 12 percent and standard deviation of 40 percent. Stock B has an expected return of 18% and standard deviation of 60%. The correlation coeffecient between stocks A and B is 0.2.

  Underpriced ipo

One of the characteristics of IPOs which puzzles experts is that they tend to be underpriced. What are the explanations for IPOs being underpriced?

  What is the aftertax cash flow from the sale of this asset

Consider an asset that costs $640,000 and is depreciated straight-line to zero over its eight-year tax life.

  What are the merits or demerits of the djia composition

It has been observed that the DJIA performance often does not mimic that of the NYSE. What are the merits or demerits of the DJIA composition?

  How much must joe set aside today to meet the settlement

Patricia and Joe Payne are divorced. the divorce settlement stipulated that joe pay $525 a month for their daughter Suzanne until she turns 18 in 4 years. How much must Joe set aside today to meet the settlement? Interest is 6% a year.

  Real value of the yuan over the past year

What has happened to the real value of the yuan over the past year? Has it gone up or down? A little or a lot? What are the likely effects of the change in the yuan's real value on the dollar profits of a company like Procter & Gamble that sells al..

  Financial management and time value of money

How are compounding and discounting related? Explain time value of money.

  What is the cross-rate in terms of yen per pound

Suppose the Japanese yen spot exchange rate is 118 yen = $1.00, and the British pound spot exchange rate is 1 pound = $1.81.

  Determine the stocks capitalization rate

A stock with a current price of $25 per share pays a current annual dividend of $2 which is expected to increase by four percent per year.

  Information about dividend policy

Alcoa recently announced a new dividend policy. The firm said it would pay a base cash dividend of 40 cents per common share each quarter. For what types of firms would Alcoa's new dividend policy be appropriate? Explain.

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