Outstanding consol bond

Assignment Help Finance Basics
Reference no: EM1356207

If the British government has a consol bond outstanding paying 100 pound per year forever. Assume the current intrest rate is 4% per year. What is the value of the bond immediately after a payment is made? What is the value of the bond immediately before a payment is made?

Reference no: EM1356207

Questions Cloud

Explain what is the purpose of free trade agreements : Explain what is the purpose of free trade agreements and how does the establishment of free trade represent a threat and an opportunity for global corporations?
Create uml collaboration diagrams using microsoft visio : Create UML collaboration diagrams using Microsoft Visio or another drawing tool capable of preparing properly formatted UML collaboration diagrams.
Criticizing the choice of an assessment tool : The issue most commonly raised when criticizing the choice of an assessment tool is whether or not it was normed appropriately.
Exit strategies for your global venture : Exit strategies for your global venture - What types of exit strategies would be most appropriate for your global venture?
Outstanding consol bond : Suppose if the British government has a consol bond outstanding paying 100 pound per year forever. Suppose the current interest rate is 4% per year.
A company is said to be a global competitor when : A company is said to be a global competitor when - it competes in a majority of the world's different country markets
Psychological assessment tools : From a counselor's perspective, what assessment characteristics will you consider to be most important in selecting appropriate assessment instruments for your clients?
Explain and determine the two essential elements your plan : Explain and Determine the two essential elements your plan must have and why you selected these two
Defining characteristic of global competition : The defining characteristic of global competition is - that driving forces and key success factors are the same in all country markets

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain systematic risk

Discuss and explain why systematic risk is more closely linked to returns than is unsystematic risk. Which differences are most important to keep in mind when working with each type of risk

  Project acquisition management

What are Key Performance Parameters (KPP) and why are they necessary to be stated in the acquisition process? What are the four componets of Net-Ready Key Performance Parameter (NR-KPP)?

  Direct and indirect costs of bankruptcy

Illustrate out the direct and indirect costs of bankruptcy. In brief explain each.

  Computation of financial leverage and forcasting the eps

Computation of financial leverage and forcasting the EPS at change in sales and They also have outstanding 1 million shares of common stock

  Show the taxable income of otter

Show the impact of this information on the taxable income of Otter, Ellie, and Linda if Otter is

  Find brown''s cost of equity from retained earnings

Multiple choice questions on equity valuation and WACC and find Brown's cost of equity from retained earnings?

  Foreign exchange rates and us interest rates

Assume the Federal Reserve Bank of US unexpectedly raises interest rates in US. How do you think this will impact foreign-exchange market?

  Discuss situations under financial leverage is beneficial

Discuss and explain the situations under which financial leverage is beneficial vs. when it is harmful. Is there a point at which it is beneficial from some stakeholders' point of view but not beneficial from other stakeholders view point?

  Cash management approach

A corporation uses a Miller-Orr cash management approach with a lower limit of $50,000, an upper limit of $130,000, and a target balance of $75,000.

  Comment on the risk exposure and the risk-return profile

Consider a newly-listed company of interest to you and using the 2009 or 2010 annual accounting reports explain its business and financial environment.

  Foreign exchange risk-exchange rates

In 250 to 350 words, describe foreign exchange risk and provide an example that examines how foreign exchange rates could cause a loss to the firm.

  Gordon growth model and one period valuation model

Based on the Gordon Growth Model, compute the anticipated market price of stock that is paying dividends at a constant growth rate of 6.25%, with the recent dividend of $1.00, and the required return rate of 15%.

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