What is bonds coupon rate

Assignment Help Financial Management
Reference no: EM131347712

ABC Inc. just issued a twenty-year semi-annual coupon bond at a price of $1,000. The face value of the bond is $1,000, and the market interest rate is 9%. What is the bond's coupon rate?

Reference no: EM131347712

Questions Cloud

Does organization encourage positive organizational behavior : Does this organization encourage positive Organizational Behavior? If yes, how do they demonstrate this? If not, what type of Organizational Behavior do they seem to encourage?
Expected return on two stocks for particular market returns : Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: Market Return Aggressive Stock Defensive Stock 6% 2.8% 4.6% 15 28 10. What are the betas of the two stocks?
Find the net present value of project : Assuming a nominal rate of interest, convertible quarterly, of 12%, find the net present value of a project that requires an investment of $100,000 now, and returns $16,000 at the end of each of years 4 through 10.
About the company through its segmented data : Find the financial statements for a publicly traded company that provides segmented financial information. Prepare an overview (approximately 300 words) of what is revealed about the company through its segmented data. Post a link to the financial st..
What is bonds coupon rate : ABC Inc. just issued a twenty-year semi-annual coupon bond at a price of $1,000. The face value of the bond is $1,000, and the market interest rate is 9%. What is the bond's coupon rate?
Find the current yield on this bond : A 20-year bond with X% annual coupons has a face value of $1,000. The price of the bond is $1, 050. The interest rate is 8% convertible semiannually. Assume redemption value equals par value. Find the current yield on this bond.
Evaluate generation project with the cash flows : Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 –$ 39,400,000 1 63,400,000 2 – 12,400,000 a-1 What is the NPV for the project if the company requires a return of 10 percent?
Compute the parameters of black-sholes model : Using historical data for the five companies and assuming that the strike price K is lower than current stock price by 2 dollars and then risk free rate is 3%, find the following. The value of a 5-year call option price written on those stocks. Fi..
Why would the drug maker want to stymie generic competition : AIU BUSN310- Why would the drug maker want to stymie generic competition? Explain. What types of legal barriers to market entry exist? What are the possible ethical dilemmas present in this example?

Reviews

Write a Review

Financial Management Questions & Answers

  The required rate of return on the project

A company considers a new project. The required rate of return (WACC) on the project is 10 percent. Which of the following statement is correct?

  Main types of bonuses common in executive compensation

Discuss the three main types of bonuses common in executive compensation. Please discuss in detail and provide examples of each type of bonus.

  What is the firms required rate of return

Cooley Company's stock has a beta of 1.40, the risk-free rate is 4.25%, and the market risk premium is 5.50%. What is the firm's required rate of return?

  About six days to receive and deposit checks from customers

It takes Cookie Cutter Modular Homes, Inc., about six days to receive and deposit checks from customers. Cookie Cutter’s management is considering a lockbox system to reduce the firm’s collection times. It is expected that the lockbox system will red..

  What price you should pay for the stock

Green Co. just paid dividend of $1.50 per share. The company predicts that the dividend will increase 10% for next 3 years and 6 percent thereafter forever. If your required rate of return is 8%, what price you should pay for the stock?

  Should elio joint venture with bostrom

Should Elio joint venture with Bostrom? Should it partner with a tier-one or a tier-two automotive supplier?

  Standard deviation based on risk

Project Alpha has an NPV of $10 million and a standard deviation based on risk analysis of $3 million. Project Beta has an NPV of $8 million and a standard deviation based on risk of $2 million. Which project should be selected and why?

  What is the annual worth of the overhead costs

The overhead costs in a highly automated factory are expected to increase at an annual compound rate of 10% for the next 7 years. The overhead cost at the end of the first year is $200,000. What is the annual worth of the overhead costs for the 7-yea..

  Coupon bond-rate of return and price

Suppose you buy a 9.6 percent coupon bond today for $1,090. The bond has 6 years to maturity. a. What rate of return do you expect to earn on your investment? Two years from now, the YTM on your bond has increased by 2 percent, and you decide to sell..

  Its dividend is expected to grow by the same amount

Suppose Pale Hose, Inc. has just paid a dividend of $1.50 per share. Sales and profits for Pale Hose are expected to grow at a rate of 7% per year. Its dividend is expected to grow by the same amount. If the required return is 14%, what is the value ..

  What is probability that project will have a npv greater

What is the probability that the project will have a negative net present value? What is the probability that the project will have a net present value greater than $2.2 million?

  Make capital budgeting decision based on the payback period

Make a capital budgeting decision based on the payback period criteria if both projects require a $25,000 initial investment.

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