Market price of the bond

Assignment Help Business Economics
Reference no: EM138402

Q. Suppose you have a $2000 bond that makes an annual interest payment of $75. Use this information to answer the following questions.

(a) Suppose the current interest rate is 6%. What would be the market price of the bond?

(b) Suppose the interest rate lowered to 3.75%. What would be the market price of the bond?

(c) Suppose the interest rate lowered even further to 2%. What would be the market price of the bond?

Reference no: EM138402

Questions Cloud

Find out the weight and the angle needed : The leg and cast weigh 220 N. find out the weight and the angle needed so that no force is exerted on the hip joint by the leg plus the cast.
The total mass inside a sphere of radius r : A submarine dives 90.0 m at an angle of 8.0° below the horizontal. What are the horizontal and vertical components of submarine's displacement? (Imagine that upward and the direction of the submarine's horizontal motion is positive.)
Increase or decrease in the money supply : Increase or decrease in the money supply increase the price level to the tolerable range
Find j, the magnitude of the impulse exerted by the ground : A piston, A, as shown below, has a diameter of 0.81 cm. A second piston, B has a diameter of 3.9 cm. conclude the force, F, necessary to support the 508.0 N weights in the absence of friction.
Market price of the bond : Suppose the interest rate lowered to 3.75%. What would be the market price of the bond.
Predict bangalore india exports : What services do you predict Bangalore India exports and what services do you predict it imports.
Find the magnitude of average force exerted on water : A stream of water strikes a stationary turbine blade horizontally. The incident stream has a velocity of +16m/s whilst the exit has a velocity of -16m/s. mass of water per second that strikes the blade is 30kg/s.find the magnitude of average force ex..
What is its energy of motion : A 1.2 kg mass attached to a spring oscillates with amplitude of 6.3 cm and a frequency of 1.1 Hz. What is its energy of motion.
Major league parks has dropped : Law of demand does not hold since attendance at the major league parks has dropped while at the same time ticket prices have fallen.

Reviews

Write a Review

Business Economics Questions & Answers

  Amount of goods and services tax

If a sample of 110 artists was taken, find the average value above which only 15% would lie. Give your answer in dollars to the nearest dollar.

  Electoral votes to win the election

Electoral College system take a country named know land that has. Suppose there are 9 small states in know land where each have 1 million people in.

  Fenway park home of the boston red sox

A Fenway park, home of the Boston Red Sox, seating is limited to 39.000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden opportunity to raise revenue.

  Elasticity of demand for non-users

Store maximizes profits and the price elasticity of demand for milk is -2 for coupon users, what is the price elasticity of demand for non-users.

  Merits as well as drawbacks of each approach

The alternative is to tie bonus pay to some absolute measure of performance. Discuss the merits as well as drawbacks of each approach.

  Selling monopoly charges

Prices the selling monopoly charges for TV sets in periods 1 and 2.

  Salmon industry to calculate the forecast

How will you consider the structure of the fresh salmon industry to calculate the forecast. Will you advise the firm to enter the industry.

  Firms cost structure

From what you know about these firms' cost structure, what is the highest possible price per unit that could be existing as the market price in the long run equilibrium.

  Cost- marginal revenue curve

This is an essay question, but I don't know how to explain. Should I use the supply-demand curve to explain, or use the marginal cost- marginal revenue curve to explain this question.

  Values in decision tree

Jim Vendors is viewing about manufacturing a new type of electric razor for men. If advertise were favorable, he would get a return of $100,000.

  United states trades

The terms of trade if the united states trades 1 can of soda for 5 units of clothing.

  Net effects of trade blocs

Do you think the net effects of trade blocs are good or bad for world trade? Why? How do the efforts of the WTO relate to these trade blocs.

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