User Account

All Pages

What is the present value of the bond

Assignment Help Finance Basics
Reference no: EM132807251

A 29-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.25% (2.625% of face value every six months). The reported yield to maturity is 4.8% (a six-month discount rate of 4.8/2 = 2.4%).

-What is the present value of the bond?

-If the yield to maturity changes to 1%, what will be the present value?

-If the yield to maturity changes to 8%, what will be the present value?

-If the yield to maturity changes to 15%, what will be the present value?(For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.)

Reference no: EM132807251

Questions Cloud

What is the total return to an investor : a. An 8%, five-year bond yields 6%. If this yield to maturity remains unchanged, what will be its price one year hence? Assume annual coupon payments and a face
What is the revaluation surplus that should be reported : R Company acquired a building at cost of 5,000. What is revaluation surplus that should be reported in the December 31, 2019 statement of financial position?
What is the effective annual yield : What is the effective annual yield? (Round answer to 2 decimal places, e.g. 5.27%.)
Do you have a different style at work then home : In the discussion board this week, you will be focusing on how your specific social style affects your work habits, work relationships, success at work.
What is the present value of the bond : A 29-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.25% (2.625% of face value every six months). The reported yield to maturity
What are the potential solutions for the problem : As you begin to move beyond your initial outline and summary, your next step will be drafting. Drafting is a very important step in the writing process.
Determine the amount of gain from change in fair value : Determine the amount of gain from change in fair value is recognized for the agricultural produce for the year ended December 31, 2020?
What is the present value of all the future dividends : What is the present value of all the future dividends? (Round answer to 2 decimal places, e.g. 125.12. Do not round your intermediate calculations.)
What is the company current stock price : The company's beta is 1.60, the market risk premium is 6.00%, and the risk-free rate is 2.50%. What is the company's current stock price?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd