What is the market value of bond

Assignment Help Financial Management
Reference no: EM131556764

What is the market value of the following bond?

Coupon 8%

Maturity date 2028

Interest paid semiannually

Par Value $1000

Market interest rate 10%

This must be done in Excel what is the formula in use?

Reference no: EM131556764

Questions Cloud

When projecting cash flows into the future : When projecting cash flows into the future and calculating net present values(NPV),
Agreements with online colleges and universities : The number of online institutions offering bachelor's, master's, and even doctoral degrees has grown dramatically in recent years.
Find the periodic payment : Find the periodic payment required to amortize a loan of $55,000 over 120 mo with interest charged at the rate 6(5/8)% of year compounded monthly.
Statement regarding coupon redemption rates : Which of the following statement regarding coupon redemption rates is true:
What is the market value of bond : What is the market value of the following bond?
Elect an integrated healthcare organization : Elect an integrated healthcare organization that you are familiar with.
When calculating the cost of capital : If the company has a $46.2 million market value of equity, what weight should it use for debt when calculating the cost of capital?
Determining the planetarium program : For the first piece of the project you will use a planetarium program (Stellarium) to plan an observing session.
Borrower in financing term sheet revolves around lenders : A key negotiation issue between lender and borrower in a financing term sheet revolves around the lenders need to shift environmental liability to the borrower

Reviews

Write a Review

Financial Management Questions & Answers

  What steps should a trader in new york take

Suppose the British short-term interest rate is 13 percent and the corresponding U.S. rate is 8 percent.- If so, what steps should a trader in New York take? What annual rate will the trader earn?

  What is the present value of the savings

Your company will generate $57,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 7.8%, what is the present value of the savings?

  Original interest rate on the loan

What is i, the original interest rate on the loan?

  What would the one-year maturity futures price

What would the one-year maturity futures price be, if the T-bill rate is less than the dividend yield, for example, 2.0%?

  Ind the present value of the perpetuity

A perpetuity has a payment of 100 at time t = 1. Find the present value of the perpetuity.

  Compensating balances are frequently part of revolving

Compensating balances are frequently a part of revolving lending arrangements with banks, yet they add to the cost of financing for the borrower. Why, then, would borrowers agree to such terms? What other types of alternative financing are available?

  Take based on the time value of money

if I were to offer you $5,000 today or $10,000 10 years from now, which would you take based on the time value of money? Or would you need some additional information in order to answer that question? If so, what information would you like to have?

  Risk-free rate remains unchanged but the market risk premium

The risk-free rate, KRF, is 6 percent and the market risk premium, (KM – KRF), is 5 percent. Assume that required returns are based on the CAPM. The portfolio’s required return is less than 11 percent. If the risk-free rate remains unchanged but the ..

  Expected net operating profit after taxes

Dernham Inc. has an expected net operating profit after taxes, EBIT (1-T), of $10,300 million in the coming year. In addition, the firm is expected to have net capital expenditures of $1,545 milllion, and net operating working capital (NOWC) is expec..

  Define the appropriate approach

DiversCo, a large U.S. company, operates in two areas: energy and retail clothing. Do you think that this is an appropriate approach?

  What is the value today of the total sum

Mike wants to buy a new car and pay it off in a decent amount of time. He is willing to initially put a down payment of $10,000 today. The car salesman says that he can give Mike a loan for the rest of the car for $250 a month for the first 6 months ..

  Expect dividends to grow at constant annual rate

Investors require a 15% rate of return on Levine Company's stock (that is, rs = 15%). What is its value if the previous dividend was D0 = $1.00 and investors expect dividends to grow at a constant annual rate of (1) -7%, (2) 0%, (3) 6%, or (4) 11%?

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