What is the current price of the bond

Assignment Help Finance Basics
Reference no: EM131387905

A 4.5% bond has a maturity of 6 years. The par value of the bond is $1,000. If the yield to maturity is 9.6% and the interest payments are made semi-annually, then what is the current price of the bond?

Enter your answer rounded off to two decimal points.

Reference no: EM131387905

Questions Cloud

Focus on a movie saving private ryan : This assignment would focus on a movie "Saving Private Ryan" Submit a 500-word proposal for your Final Paper. This paper will be less a research paper than an analytical or critical paper, one that plans to examine closely a particular film "as ar..
What is the investment profitability index : ABC Inc. is considering an investment of $1,629 million with after-tax cash inflows of $347 million per year for six years and an additional after-tax salvage value of 83 million in Year 6. The required rate of return is 5%. What is the investment..
Discuss about the leading effective teams : A critical skill for all nurse managers is the ability to create, develop, and lead effective teams. When people are part of an effective and well-functioning team, they are more productive and have a stronger commitment to the organization. Nurse..
Explain has walker committed a material breach of contract : A week later, Walker sent out a crew, which did all of the requested maintenance services. Has Walker committed a material breach of contract? Explain.
What is the current price of the bond : A 4.5% bond has a maturity of 6 years. The par value of the bond is $1,000. If the yield to maturity is 9.6% and the interest payments are made semi-annually, then what is the current price of the bond?
Discuss about the post given below : NURS6341: It has been more than 11 years that I have been working as a registered nurse, and yet, I can still remember exactly how I felt after the first time I got pulled to another unit. I had been on my own about a month when I got pulled to t..
Write a financial analysis for a us based : To begin, research the latest two years of financial statements for a publicly traded organization based in the United States. Obtain the organization's three most recent annual reports. You may choose any organization, as long as the data needed ..
Explain whether watts will prevail and why or why not : The commission obtained another company to perform the project, and on October 14, informed Watts that it had accepted the withdrawal of the bid. Watts sued for breach of contract. Explain whether Watts will prevail and why or why not.
What do these reports tell me about my strengths : What do these reports tell me about my strengths? What do these reports tell me about my weaknesses? What do these reports tell me about my targets of regulation?

Reviews

Write a Review

Finance Basics Questions & Answers

  Give a brief description of terms junk bond and risk rating

Give a brief description of the following terms: a. junk bond, b. convertible bond, c. perpetual bond, d. subordinated bond, e. Risk Rating, F. performance promise and g. YTC YIELD TO CALL.

  What is netflixs strategy which of the five generic

1 what does your strategic group map of the industry look like? how attractively is netflix positioned on the map?

  A company has net income of 180000 a profit margin of 80

a company has net income of 180000 a profit margin of 8.0 and an accounts receivable balance of 140000. assuming 75 of

  Impact of sox on going private

Impact of SOX on Going Private: - Explain why some public firms decided to go private in response to the passage of the Sarbanes-Oxley (SOX) Act.

  What is the expected forward exchange rate one year from now

What is the expected forward exchange rate 1 year from now? If Solitaire undertakes the project, what is the net present value and rate of return of the project for Solitaire?

  Determine the value of the portfolio

Determine the value of the portfolio if the domestic stock increases by 2 percent, the domestic stock futures contract increases by 1.8 percent, the foreign stock increases by 1.2 percent, and the foreign stock futures contract increases by 1.4 pe..

  Calculate the equivalent annual cash flow from each machine

Machines a and b are mutually exclusive and are expected to produce the following real cash flows.

  What are the differences between the operating income

what are the differences between the operating income capital gains income and dividend income of a corporation at

  Nonconstant growth valuation

Holt Enterprises recently paid a dividend, D0, of $3.00. It expects to have nonconstant growth of 22% for 2 years followed by a constant rate of 7% thereafter. The firm's required return is 16%.

  Compute the value of the bond

A company has a bond issue outstanding that pays $150 annual interest plus $1000 at maturity. The bond has a maturity of 10 years. Compute the value of the bond when the interest rate is 5%, 9%, and 13%. Describe the pattern and the type of risk t..

  What price would you expect coolibahs stock to sell

what price would you expect Coolibah's stock to sell for at the end of three years?

  Discuss the issues related to corporate governance and the

discuss the issues related to corporate governance and the practices performed by an independent board of directors who

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