What is the current value of one of these bonds

Assignment Help Financial Management

Reference no: EM131308868

Due to a number of lawsuits related to toxic wastes, a major chemical company has recently experienced a market revaluation. The firm has bonds outstanding that were issued 8 years ago at their par value of $1,000. These bonds have 12 years to maturity and a coupon rate of 6 percent, with interest paid semiannually. The required return on these bonds has increased to 14 percent. What is the current value of one of these bonds?

Reference no: EM131308868

Questions Cloud

Deliver a response to the interview question : Deliver a response to the interview question "Tell me about yourself."- What did you do that you feel most proud of? What parts of your presentation were most powerful?

Compute the consumption share of income : ECON 2102-02 - Intermediate Macroeconomics Assignment. Compute the consumption share of income, i.e., consumption expenditure divided by income. Generate a time series plot of consumption share. Is the consumption share fairly constant over time as..

What factors might improve the trade-off : Can you offer an explanation for what seems to be an improved trade-off between inflation and unemployment? What factors might improve the trade-off? What factors might make it worse?

Write a thee page paper discuss why hci is important : Write a 3 page paper discuss why HCI (Human computer Interaction) is important and has evolved to ensure that the needs of different kinds of users are taken into account in computer systems.

What is the current value of one of these bonds : Due to a number of lawsuits related to toxic wastes, a major chemical company has recently experienced a market revaluation. The firm has bonds outstanding that were issued 8 years ago at their par value of $1,000. These bonds have 12 years to maturi..

Activity-research methods : Research how quantitative research is used in your discipline. Write an essay that describes how quantitative research tools can be used to aid in decision making within your field. Be sure your essay addresses the following questions/topics:

How will affect the comparison of the alternatives : A manufacturer is considering replacing an existing autoclave that nears the end of its useful life and no longer provides the required pressure with a new one. Assume that the life of Autoclave A can be extended for an extra two years, at which tim..

Does pattern of unemployment help explain movement of wages : The effect of a change in inflationary expectations on a recently stable Phillips Curve c. Unemployment caused by a recently enacted minimum wage law

Deliver a speech as part of a team panel : Deliver a speech as part of a team panel- Prepare a two-minute speech (using note cards) on the business topic.

User Account

All Pages