How much would you being willing to pay to purchase bond

Assignment Help Financial Management
Reference no: EM131349197

You recently inherited some money and have the opportunity to invest it in a government bond which will pay you $55,000 when it matures in 10 years. The bond has an interest rate of 5%, compounded quarterly. Assuming there are no sales or transaction costs, how much would you being willing to pay to purchase the bond, and why?

plese show detailed workout and give the reason for "WHY?"

Reference no: EM131349197

Questions Cloud

What are reward-to-risk ratios : Stock Y has a beta of 1.05 and an expected return of 14.1 percent. Stock Z has a beta of .70 and an expected return of 7 percent. If the risk-free rate is 5 percent and the market risk premium is 7.4 percent, what are the reward-to-risk ratios of Y a..
Calculate expected return and standard deviation : The stock of Bruin, Inc., has an expected return of 13 percent and a standard deviation of 43 percent. The stock of Wildcat Co. has an expected return of 11 percent and a standard deviation of 37 percent. The correlation between the two stocks is .37..
What is considered to be a public record that must be made : PAD 525- Your state's statute that defines what is considered to be a public record that must be made available to the public upon request. The pre-World War I opinion by the U.S. Supreme Court holding, on re-argument, that a federal income..
Explain the relevance of this work for today audiences : Analyze the work (suggested length of 2-4 pages) by doing the following: Analyze how this work explores a particular theme and/or stylistic characteristic from its period. Explain the relevance of this work for today's audiences
How much would you being willing to pay to purchase bond : You recently inherited some money and have the opportunity to invest it in a government bond which will pay you $55,000 when it matures in 10 years. The bond has an interest rate of 5%, compounded quarterly. Assuming there are no sales or transaction..
Strategic management in dynamic environment : What is your benchmark?- Did it benefit from global expansion? If so, how? If not, why?- Did this benefit or hinder the benchmark's domestic market share? Explain.
Causing the market price of the stock to be quite volatile : Several rumors concerning a stock are causing the market price of the stock to be quite volatile. Given this situation, you decide to buy both a one-month European $25 put and a one-month European $25 call on this stock. The call price per share is $..
Explain to what extent your beliefs affect your reactions : PAD 525- Evaluating Van Orden v. Perry, as a public administrator, in the rule of law, explain to what extent your beliefs should affect your reactions to the various justices' opinions.
How would you characterize the transition : How would you characterize the transition from Spanish colonial rule to Mexican California? (Create your own characterization but use specific information from the sources to support your characterization)

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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