What is the current value of his bonds

Assignment Help Financial Management

Reference no: EM132006040

Ten years ago Franky Frugal bought some 20-year treasury bonds for $200,000. The bonds will pay $4300 per year for 20 years, and at the end of 20 years he will receive his last payment plus his original $200,000 back. Unfortunately Franky's wife is really ill, and he needs all of the money he can get to pay his bills. hE decides to sell his bond. The current rate on a 10-year T-bond is 6.54% per year. What is the current value of his bonds? $

Reference no: EM132006040

Questions Cloud

Define the time value of money principle : Define the time value of money principle, explaining how it works, and construct at timeline for the following:

What would be cost of equity from new common stock : Trahern Baking Co. common stock sells for $33.15 per share. What would be the cost of equity from new common stock?

Find bond quote online listing bond price : You find a bond quote online listing a bond's price as "105". The bond's current price is $_______.

Company is considering new investment : The Freeman Manufacturing Company is considering a new investment. What is the NPV of the project?

What is the current value of his bonds : Ten years ago Franky Frugal bought some 20-year treasury bonds for $200,000. What is the current value of his bonds?

At that time you expect the discount rate on similar bonds : At that time you expect the discount rate on similar bonds with similar risk to be 8%. If you’re correct, the yield over the 5-year period would be:

How much will he owe at the end of two years : How much will he owe at the end of two years? How much of his balance at the end of two years represents unpaid interest?

Calculate the interest paid on the mortgage : When he filed his taxes for 2016, he needed to calculate the interest paid on the mortgage.

What would be the expected rate of return on that portfolio : What would be the expected rate of return on that portfolio?

User Account

All Pages