Maximum price that you should be willing to pay for bond

Assignment Help Financial Management
Reference no: EM131524128

Assume that you wish to purchase a 18-year bond that has a maturity value of $1,000 and a coupon interest rate of 6%, paid semiannually. If you require a 8.84% rate of return on this investment (YTM), what is the maximum price that you should be willing to pay for this bond?

Reference no: EM131524128

Questions Cloud

Growing concern about growing national debt : There is a growing concern about the growing national debt.
Sierra leone gross domestic policy : What relationship is there between Sierra Leone's Gross Domestic Policy and its economy?
Growing concern about growing national debt : There is a growing concern about the growing national debt.
What steps would you take to close the gap : what steps would you take (within your control) to close the gap between the level of service passengers expect and the level they have been receiving?
Maximum price that you should be willing to pay for bond : what is the maximum price that you should be willing to pay for this bond?
Monopolistic competition or a differentiated oligopoly : Short essay identifying and describing the conditions you observed for a business in Monopolistic Competition or a Differentiated Oligopoly who differentiates.
How do we know when to stop making assessments : When we assess our subjective probabilities, we are building a model of the uncertainty we face. If we face a range-of-risk problem.
What is yield to maturity of the bond : A bond sells for $894.17 and has a coupon rate of 6.20 percent. If the bond has 13 years until maturity, what is the yield to maturity of the bond?
What annual rate of return will you earn : At the end of four years (immediately after the fourth dividend payment), you will sell your stock at $60 per share. What annual rate of return will you earn?

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