What is percentage change in the price of this bond

Assignment Help Financial Management
Reference no: EM131554847

A 16-year, 4.5 percent coupon bond pays interest semiannually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield to maturity rises to 5.3 percent from the current rate of 5.6 percent

Reference no: EM131554847

Questions Cloud

Find the after-tax cost of debt : Find the after-tax cost of debt given that the company issues a $1,000 bond with a coupon rate of 8%, 20 years to maturity, and the market price is $940.
How much are you willing to pay to purchase one share : Miller Brothers Hardware paid an annual dividend of $1.15 per share last month. how much are you willing to pay to purchase one share of this stock today.
How do employers look for potential employees : How do Employers look for potential employees through LinkedIN? What are the advantages for an Employer to use LinkedIN
Prevalence of diabetes in the population : If the population is in steady state and the incidence is constant, what will be the effect of this new drug on the prevalence of diabetes in the population?
What is percentage change in the price of this bond : What is the percentage change in the price of this bond if the market yield to maturity rises to 5.3 percent from the current rate of 5.6 percent
Bonds engage in interest rate swaps in financial markets : Explain why some companies that issue bonds engage in interest rate swaps in financial markets.
What is the theme of this movie or show : choose music from a movie or a favorite TV show and explain What is the theme of this movie/show? What support do you have for this theme
Calculate wacc using market-value weights : The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Calculate Pawlson WACC using market-value weights.
Proton pump inhibitors overused in the hospitalized patients : find research regarding this topic below, I need research with 99 pages. proton pump inhibitors overused in the hospitalized patients

Reviews

Write a Review

Financial Management Questions & Answers

  After-tax operating income-capital expenditures

You are trying to value Zombie Games Inc,, a company that manufactures games for the major game systems. The firm generated $ 30 million as operating profit (EBIT) in the most recent year and the corporate tax rate is 40%. Assuming that the after-tax..

  What was the times interest earned ratio

For the most recent year, Seether, Inc., had sales of $437,000, cost of goods sold of $219,400, depreciation expense of $59,100, and additions to retained earnings of $51,300. The firm currently has 22,000 shares of common stock outstanding, and the ..

  Cultural values-extra cash to pay special one-time dividend

Electronic Timing, Inc., (ETI), is a company founded 15 years ago by electronics engineers Tom Miller and Jessica Kerr. ETI manufactures integrated circuits to capitalize on the complex mixed-signal design technology and has recently entered the mark..

  Calculate the firms operating cycle

Cash conversion cycle: American Products is concerned about managing cash efficiently. On the average, inventories have an age of 90 days, and accounts recievable are collected in 60 days. Calculate the firms’s operating cycle. Calculate the firm’s c..

  All debt all equity income available for asset funders

You are considering a stock investment in one of two firms (All Debt, Inc., and All Equity, Inc.), both of which operate in the same industry and have identical operating income of $10.00 million. All Debt All Equity Income available for asset funder..

  What are real estate investment trusts

What are real estate investment trusts (REITs)? How are they classified? What are some attractive characteristics of REITs? How can REITs help diversify a portfolio?

  What is the net present value of project

The cost of capital is 7.81 percent and the interest rate on the loan would be 2 percent. What is the net present value of the project?

  What is the current yield to maturity for these bonds

Fifteen years ago, Namson and Co. issued 25-year coupon bonds. The yield to maturity at the time of issuance was 10 percent and the bonds sold at 120% of par value. The bonds are currently selling at 85% of par value. What is the current yield to mat..

  Find the duration of the plan obligations

A pension plan is obligated to make disbursements of $2.7 million, $3.7 million, and $2.7 million at the end of each of the next three years, respectively. Find the duration of the plan's obligations if the interest rate is 10% annually.

  Should the investment be undertaken

An investment requires an outlay of $100,000 today. Cash inflows from the investment are expected to be $40,000 per year at the end of years 4, 5, 6, 7, and 8. If you require a 20 percent rate of return on this type of investment, should the investme..

  Expansion project-what is project year one net cash flow

Keiper, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.43 million. The fixed asset falls into the three-year MACRS class. If the tax rate is 30 percent, what is the project’s year 1 net c..

  Why exclusion reflect market failure in the insurance market

Many privately purchased health insurance plans have stringent "preexisting conditions" exclusions, which deny coverage to insured persons for any health conditions that were known at the time of enrollment.- Why does this exclusion reflect a mark..

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