What is the best estimate of these bonds remaining life

Assignment Help Finance Basics
Reference no: EM13296463

Lloyd Corporation's 14% coupon rate, semiannual payment, $1,000 par value bonds, which mature in 30 years, are callable 5 years from today at $1,050. They sell at a price of $1,353.54, and the yield curve is flat. Assume that interest rates are expected to remain at their current level. What is the best estimate of these bonds' remaining life?

Reference no: EM13296463

Questions Cloud

What is the coupon rate : Kaiser Industries has bonds on the market making annual payments, with 14 years to maturity, and selling for $1,382.01. At this price, the bonds yield 7.5 percent. What is the coupon rate?
Determine flow rate of water that will cause a pressure drop : Determine the flow rate of water (20 degrees celcius) that will cause a pressure drop of 17250 N/m^2 in 350m of horizontal, cast-iron pipe (d=60cm). assume minor losses are negligibe
Introduction to criminal law assignment : Explain the elements of murder including what is required to convict someone of attempt to commit murder and explain whether or not Mr. Assin committed attempt to commit the murder of Sally's husband.
True of a valid voting trust : Which of the following is not true of a valid voting trust?
What is the best estimate of these bonds remaining life : Assume that interest rates are expected to remain at their current level. What is the best estimate of these bonds' remaining life?
How fast will the sled be traveling at the bottom : Please show how you got the answer, thanks! At the top of a hill with slope angle 32o a snow sled is moving at 4 m/s. how fast will the sled be traveling at the bottom
Explain how many liters of water are required to dissolve : How many liters of water are required to dissolve 5.55 grams of KOH and make a solution with a pH of 11.63
Find what are the monthly payments and the total interest : A 2014 Ford Mustand convertible in 'Gotta have it Green Metallic' is retailing for $38,000. If you put $3,500 down on the vehicle, and obtain approval for a 2.19% car loan compounded monthly for 5 years.
To be deemed sufficient-consideration of contract : To be deemed sufficient, the consideration of a contract must

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the 2012 cash flow to creditors

Calculating Total Cash Flows Schwert Corp. shows the following information on its 2012 income statement: sales = $185,000; costs = $98,000; other expenses = $6,700.

  What will be tip-top''s cost of equity

1. The Tip-Top Paving Co. wants to be levered at a debt to value ratio of .6. The cost of debt is 11%, the tax rate is 34%, and the cost of equity for an all equity firm is 14%. What will be Tip-Top's cost of equity?

  How economic policy affected the lending institutions

From an economic growth & prosperity level, we have to look at the role of financial system. We know that high inflation means higher interest rates,

  What is the required rate of return on a stock

Assume that the risk-free rate is 5 percent and the market risk premium is 6 percent. What is the expected return for the overall stock market? What is the required rate of return on a stock that has a beta of 1.2?

  Discuss the pros and cons associated with debt

Discuss the pros and cons associated with debt financing when compared to equity financing. use examples specific to the health care industry to support your response.

  Hierarchical and network database structure

Compare and contrast the Hierarchical Database Structure and the Network Database Structure

  Find current share price

Apocalyptica Corporation pays a constant $7.25 dividend on its stock. The firm will maintain this dividend for the next nine years and will then cease paying dividends forever.

  What is the amount of the firm disbursement float

In addition, the firm generally receives an average of $16,400 a day in checks. Deposited amounts are available after 2 days. What is the amount of the firm's disbursement float?

  What is the equivalent value of your 12-year annuity

If the interest rate is 8%, what is the equivalent value of your 12-year annuity if paid in one lump sum five years from today?

  Analyze the investment banking process

The Capital Markets and Investment Banking Process is new and quite confusing to me. Analyze the investment banking process.

  What other swap options are there

You are unable to change the maturity structure of the portfolio (i.e. you cannot sell long-term bonds and buy short-term bonds). What other swap options are there?

  What is the eps figure for 2008

Pizza A had earnings after taxes of $600,000 in the year 2008, and 300,000 shares outstanding. In year 2009, earnings after taxes increased to $750,000, and 25,000 new shares were issued for a total of 325,000 shares. What is the EPS figure for 20..

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