What is the current price of bond m and bond n

Assignment Help Financial Management
Reference no: EM131323338

Jallouk Corporation has two different bonds currently outstanding. Bond M has a face value of $60,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $2,700 every six months over the subsequent eight years, and finally pays $3,000 every six months over the last six years. Bond N also has a face value of $60,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. The required return on both these bonds is 12 percent compounded semiannually. What is the current price of bond M and bond N? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Current price Bond M $ Bond N $

Reference no: EM131323338

Questions Cloud

Determine the rate of return from a risk-free hedge : Consider a stock currently trading at 25 that can go up or down by 15 percent per period. The risk-free rate is 10 percent. Use one-period binomial model. Exercise Price of 25. Determine the rate of return from a risk-free hedge if the call is tradin..
What are the advantages of the c3 system : Read Collective Customer Collaboration Impacts on Supply-Chain Performance. This presents the characteristics and benefits of a collective customer collaboration (C3) system. The C3 system is used to explain the impact of customer knowledge on sup..
Establishing special parking spaces : 1. What are they going to be involved with: making things nicer for employees, establishing special parking spaces, or what? If this is what the group is doing, how long do you think this will last?
Predefined by the organization and as per margins : The cost attributed to this project is according to the metrics that are predefined by the organization and as per margins followed by the project budget. Majority of the cost in this project will go in financing R&D to create the new interface.
What is the current price of bond m and bond n : Jallouk Corporation has two different bonds currently outstanding. Bond M has a face value of $60,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $2,700 every six months over the subsequent eight years, and ..
Summarize communication strategy of your chosen organization : In this assignment, you will need to summarize the communication strategy of your chosen organization, analyze the communication strategy of your chosen organization.
Average cheque size be for fee alternative to be less costly : Lockboxes. The financial manager of JAC Cosmetics is considering opening a lockbox in Calgary. Cheques cleared through the lockbox will amount to $300,000 per month. The lockbox will make cash available to the company three days earlier. What must th..
How are you performing on certain attributes versus others : Marketing 404 : Describe the insights that emerge from the data that you have collected. How do consumers perceive your company versus the competition? How are you performing on certain attributes versus others? Where should you focus your efforts..
What is the name of the statistic used in an anova : If the independent variable has no effect, the calculated value of F will be around 1.00. Why?

Reviews

Write a Review

Financial Management Questions & Answers

  Evaluate most projects of average risk

The Cowboys Christmas Company uses a required return of 11.3% to evaluate most projects of average risk. Suppose the company is looking at a new project that is lower-than-average-risk, and the CEO thinks the discount rate should be risk-adjusted. Wh..

  Calculate the required rate of return on the preferred stock

The price of preferred stock X is $65.00, and the divided per share is 7% of the par value of $100. Calculate the required rate of return on the preferred stock,rp.

  The stocks current price should be

A stock is expected to pay the following dividends: $1.10 in 4 years, $1.70 in 5 years, and $1.75 in 6 years, followed by growth in the dividend of 5% per year forever after that point. There will be no dividends prior to year 4. the stock's required..

  Stock portfolio-create a portfolio with an expected return

You have $12,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 11 percent and Stock Y with an expected return of 8 percent. If your goal is to create a portfolio with an expected return of 9.59 percent, how much ..

  Calculate the appropriate transfer price per pound

Sugarland, Inc., has a division in Indonesia that makes dyestuff in a variety of colors used to dye denim for jeans, and another division in the United States that manufactures denim clothing. The Dyestuff Division incurs manufacturing costs of $2.68..

  What is the value of this annuity

A 4-year annuity of eight $6,200 semiannual payments will begin 6 years from now, with the first payment coming 6.5 years from now. If the discount rate is 7 percent compounded semiannually, what is the value of this annuity 4 years from now?

  Cash conversion cycle-how much would pre-tax profits change

Primrose Corp has $17 million of sales, $2 million of inventories, $3 million of receivables, and $1 million of payables. Its cost of goods sold is 85% of sales, and it finances working capital with bank loans at an 7% rate. What is Primrose's cash c..

  Is there evidence of long range dependence

Compute the first 100 lags of the ACF of the absolute daily simple returns of IBM stock. - Is there evidence of long-range dependence? Why?

  What factors affect the cost of money

What factors affect the cost of money? Use at least one outside source. You may form your own opinions as well but support them with research. Production Opportunities- the returns available within an economy from investment in productive (cash produ..

  Prepare the pro-forma income statement and balance sheet

Here is the income statement and balance sheet of the Conwell Inn last year. In the next year, we predict a sales increase of 20% next year. It is assumed that dividend payout ratio will remain the same next year, and to increase sales, new rooms sho..

  Value of the shareholders equity account for this firm

Bear Tracks, Inc has current assets of $2,030, net fixed assets of $9,780, current liabilities of $1,640, and long-term debt of $4,490. What is the value of the shareholders equity account for this firm ? how much is net working capital ?

  Identified an investment project with the cash flow

Havana, Inc., has identified an investment project with the following cash flows. Assume the discount rate is 6 percent, what is the future value of these cash flows in Year 4?  What is the future value at an interest rate of 14 percent?

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