What is the amount of the first interest payment

Assignment Help Finance Basics
Reference no: EM13336188

Refer to the following information:

Amount issued $420 million Offered Issued at a price of 102.00% plus accrued interest (proceeds to company 101.790%) through First Boston Corporation.
Interest 9.75% per annum, payable February 15 and August 15.

a.  Suppose the debenture was issued on September 1, 1992, at 102.00%. How much would you have to pay to buy one bond delivered on September 15? Don't forget to include accrued interest. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Amount to be paid %

b. What is the amount of the first interest payment? (Do not round intermediate calculations. Enter your answer in millions and final answer to 1 decimal place.)

Amount of payment: $ million

Reference no: EM13336188

Questions Cloud

Determine the thickness of the plate : A quarter-wave plate is made from a piece of calcite with its optic axis oriented paralle to its surface, Determine the thickness of the plate in terms of the wavelength of the radiation and the two refractive indices
Two decimal places at the end of the calculations : You have $1,931.64 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $200,000. You expect to earn 14% annually on the account. How many years will it take to reach you..
Find the work done by the gravitational force : A 7430-kg satellite has an elliptical orbit, as in the figure. The point on the orbit that is farthest from the earth is called the apogee and is at the far right side of the drawing. Find the work done by the gravitational force
Create class diagram : Draw a UML class diagram that models the aspects of job agencies that are described below.
What is the amount of the first interest payment : Amount issued $420 million Offered Issued at a price of 102.00% plus accrued interest (proceeds to company 101.790%) through First Boston Corporation.
What is the maximum size of the magnetic field produced : The maximum current in a particular type of solenoid (used in strong B field research) can be as large as 4 kA. what is the maximum size of the magnetic field produced inside the solenoid
How large a resistor can be inserted in series : How large a resistor can be inserted in series with each drain connection while maintaining saturation - what is the largest resistor
Find an expression for vds : find an expression for vDS in terms of iD. Sketch and clearly label a graph for vDS versus iD.
Draw a uml class diagram : Agencies typically keep the details of the employers they have dealt with, even when they have no current business with them.

Reviews

Write a Review

Finance Basics Questions & Answers

  Purposes of analysis

Eastern Telecom is planning to decide whether to increase its cash dividend immediately or use funds to rise its future growth rate. It will use the dividend valuation model originally presented in purposes of analysis.

  Compute the after-tax cost of purchasing

It would be depreciated under MACRS using a 5-year recovery period. The firm would pay $1,500 per year for a service contract that covers all maintenance costs. There is no salvage value.

  What is the firms weighted average cost of capital

If Imaginary is subject to a 40 percent marginal tax rate, then what is the firm's weighted average cost of capital?

  Compute the break-even point in boxes

Jack and Joe, Corporation, sells fine chocolates at $15 a box. The fixed costs of this operation are $80,000, while the variable cost each box is $10.

  What is the effective annual rate

Ricky Ripov's Pawn Shop charges an interest rate of 15 percent per month on loans to its customers. Like all lenders, Ricky must report an APR to consumers.

  What do you think the ex-dividend price will be

New IRS regulations require that taxes be withheld at the time the dividend is paid. Palmer sells for $109 per share, and the stock is about to go ex-dividend.

  Compute eps under all three methods of financing

Compute EPS under all three methods of financing the expansion at $8.0 million in sales (first year) and $10.9 million in sales (last year). (Round your answers to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

  Calculate the opportunity cost of producing food

Country C produces 7 kilograms of food and 4 meters of textile per unit of inputs. Calculate the opportunity cost of producing food instead of textile. Also, calculate the opportunity cost of producing textiles instead of food.

  What countries have the highest rating

How many companies have AAA rating for its bonds? What countries have the highest rating?

  What is this firm debt-equity ratio

Jiminy Cricket Removal has a profit margin of 11 percent, total asset turnover of 1.13, and ROE of 14.33 percent. What is this firm's debt-equity ratio?

  Appropriate to the level of study

Discipline-specific knowledge and capabilities: appropriate to the level of study related to a discipline or profession.

  Advantages also disadvantages of stock-for-stock

Elucidate the advantages also disadvantages of stock-for-stock transactions also cash-for-stock transaction.

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