Laurel inc and hardy corp both have 10 percent coupon bonds

Assignment Help Finance Basics
Reference no: EM13363819

Laurel, Inc., and Hardy Corp. both have 10 percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par value. The Laurel, Inc., bond has 5 years to maturity, whereas the Hardy Corp. bond has 15 years to maturity. If interest rates suddenly fall by 2 percent, the percentage change in the price of Bonds Laurel, Inc., and Hardy Corp. is ___________ percent and 3.7 percent, respectively.

Reference no: EM13363819

Questions Cloud

Scenario analysis your firm agrico products is considering : scenario analysis. your firm agrico products is considering a tractor that would have a net cost of 36000 would
You notice that the risk-free rate is 8 and the market : you notice that the risk-free rate is 8 and the market expected return is 14. if the stock you are aiming at has a beta
Easy money loans money at 32 apr and compounds interest : easy money loans money at 32 apr and compounds interest weekly and what is the actual rate the payday loan business is
You are considering changing jobs your goal is to work for : you are considering changing jobs. your goal is to work for 3 years and then return to school. a potential employer
Laurel inc and hardy corp both have 10 percent coupon bonds : laurel inc. and hardy corp. both have 10 percent coupon bonds outstanding with semiannual interest payments and both
Lashi and hsipaw railways ltd is currently unleveredie it : lashi and hsipaw railways ltd is currently unleveredi.e. it has 100 equity and no debt. there are 1000000 shares on
Capital budgeting involves decisions about whether or not : capital budgeting involves decisions about whether or not to invest in fixed assets and it has a major influence on
You are a manager in a fictitious company of your choice : you are a manager in a fictitious company of your choice. your director has asked you to explain to the department
You were recently hired as management director of the new i : you were recently hired as management director of the new i can business incorporated icbi. you have been asked to

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the firm flotation-adjusted cash flow

If your firm follows the practice of incorporating flotation costs into the project's initial investment, what is the firm's flotation-adjusted cash flow in year 0?

  Prepare the balance sheet at the end of the trading day

Prepare the balance sheet at the end of the trading day, and what is the closing margin balance in % of total assets?

  Present values of several cash flows

Evaluate the present value of a $270 cash flow for the following combinations of discount rates and times:

  Objective type questions on portfolio management

Objective type questions on portfolio Management and What is the best estimate of the current stock

  Should they remove the equipment before 5 years are up

Salvage value after 3 years would be $30,000, $20,000 after 4 years and $0 after 5 years? Should they remove the equipment before 5 years are up? when?

  How much interest would you be paying

Your bank offers to lend you $180,000 at an 8.5% annual interest rate to start your new business. The terms require you to amortize the loan with 10 equal end-of-year payments. How much interest would you be paying in Year 2?

  What is this firm pretax cost of debt

Four years ago, the Morgan Co. issued 15-year, 7.0 percent semiannual coupon bonds at par. Today, the bonds are quoted at 101.6. What is this firm's pretax cost of debt?

  What is the shareholder value of the firm

The pretax cost of debt for a similar nonrated firm is 10%. No adjustment is made in the calculation of the cost of equity for a marketability discount. What is the shareholder value of the firm?

  Explain main aspects of regulatory environment

Explain main aspects of the regulatory environment which will protect the public from fraud within corporations. Pay particular attention to SOX needs.

  How large of a rebate should the company offer to a buyer

A manufacture has been selling 1700 television sets a week at 420dollars each. A market survey indicates that for each 21 -dollarrebate offered to a buyer, the number of sets sold will increase by210 per week.

  What will be its per-share dividend in 2009

The company had a 40% dividend payout ratio in 2008. If Bowles wants to maintain this payout ratio in 2009, what will be its per-share dividend in 2009?

  Find the range of values for ending stock price in 1 year

Equalize the range of payoffs for the stock and the option. (Round your answer to two decimal places) The ratio of ending price to ending stock value is.

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