The bond will present the holder with capital

Assignment Help Financial Management
Reference no: EM131048595

A bond with an annual coupon of $70 and originally sold at par for $1,000. The current market interest rate (yield to maturity) is 8%. This bond will sell at _______. Assuming no change in market interest rates, the bond will present the holder with capital ________ as it matures. . A. premium; gains B. discount; gains C. premium; losses D. discount; losses

Reference no: EM131048595

Questions Cloud

Concepts of multiculturalism and diversity : Apply concepts of multiculturalism and diversity to become an agent of change. Kouzes and Posner (2012) state, "Leaders make sure that people know they are being paid attention to and not being taken for granted" (p. 318). There are many different..
Find the overall gain in ratios : An amplifier has three stages A,B and C of voltage gains 200, 300 and 400 respectively.find the overall gain in ratios
Compute the net present value if the cost of capital : The Horizon Company will invest $96,000 in a temporary project that will generate the following cash inflows for the next three years. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator..
Question regarding the general and special populations : In what ways do health insurance coverage rates and sources of that coverage differ between general and special populations (such as homeless population)? Are there particular aspects about the way health insurance is structured that lead to these..
The bond will present the holder with capital : A bond with an annual coupon of $70 and originally sold at par for $1,000. The current market interest rate (yield to maturity) is 8%. This bond will sell at _______. Assuming no change in market interest rates, the bond will present the holder with ..
Barriers for the general population : What are some of the major barriers to obtaining health care, beyond health care insurance coverage, for the homeless population you read about this unit? Do these differ from access barriers for the general population?
What type of pattern exists in the data : a. Construct time series plot. What type of pattern exists in the data? b. Use simple linear regression analysis to find the parameters for the line minimizes MSE for this time series.
Question regarding the audience awareness : In Lesson 2, in the 2.1 Introduction section, we discussed that there is a process to writing, but that there is no one specific, start-to-finish process. Instead, the process is cyclical as we learned throughout the lesson. Additionally, you lear..
How would the fall in price of oil affect the economies : With oil price falling, there will be some countries that will benefit and some countries which will lose out. How would the fall in price of oil affect the economies of: huge oil importing countries such as China or India

Reviews

Write a Review

Financial Management Questions & Answers

  Considering a new three-year expansion project

Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,670,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worth..

  Equipment to produce specialized aluminum products

ALUM, Inc. uses high-tech equipment to produce specialized aluminum products for its customers. Each one of these machines costs $1,520,000 to purchase plus an additional $48,000 a year to operate. The machines have a five-year life after which they ..

  Fed funds rate and the three month treasury narrowed

The Federal funds purchased & repurchase agreements of Washington Mutual Bank declined from 4.1% of assets to .09% of assets between 6/30/2007 and 6/30/2008. The difference between the Fed Funds rate and the three month treasury narrowed as investors..

  In the hope of high returns venture capitalists provide

in the hope of high returns venture capitalists provide funds to finance new start up companies. however potential

  Homeowners debt payments to take home pay ratio

Experts advise that your debt payments to take home pay ratio should not exceed 20%. A homeowner has the following monthly income and expenses: What is the homeowner's "debt payments to take home pay" ratio?

  Beta of firm is likely to be high under what two conditions

The beta of a firm is likely to be high under what two conditions?

  Treasury bond-default risk premium and liquidity premium

A 5-year Treasury bond has a 4.05% yield. A 10-year Treasury bond yields 6.15%, and a 10-year corporate bond yields 9.35%. The market expects that inflation will average 2.1% over the next 10 years (IP10 = 2.1%). A 5-year corporate bond has the same ..

  Share of this stock worth today if required rate of retun

Langley Enterprises pays a constant dividend of $1.50 a share. The company announced today that it will continue to do this for another 2 years after which time it will discontinue paying dividends permanently. What is one share of this stock worth t..

  The glass-steagall act prohibited

The Glass-Steagall Act prohibited

  Relationship between the yield to maturity and coupon rate

Suppose a semi-annual coupon bond has coupon rate of 3.5%, maturity of 10-years and price per $100 of face value equal to 106. What can you say about the relationship between the yield to maturity and the coupon rate?

  Each department in a company should have an equal voice

Collecting samples is hampered by great distances between subsidiaries. Each department in a company should have an equal voice.

  According to the expectations hypothesis

Consider the following $1,000 par value zero-coupon bonds: Bond Years until Maturity Yield to Maturity A 1 4.9% B 2 5.9 C 3 6.4 D 4 6.9 According to the expectations hypothesis, what is the market’s expectation of the one-year interest rate three yea..

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