What is the present worth now of one bond

Assignment Help Finance Basics
Reference no: EM13881862

Best Buy issued collateral bonds 4 years ago that have a face value of $20,000 each and a coupon rate of 8% per year, payable semiannually. If the bond maturity date is 20 years from the date they were issued and the interest rate in the marketplace is now 12% per year, compounded semiannually, what is the present worth (now) of one bond?

Reference no: EM13881862

Questions Cloud

What is present worth of the dividend savings to epwu rate : If the bond dividend rate would have been 4% per year, payable quarterly, with a bond maturity date 18 years after issuance, what is the present worth of the dividend savings to EPWU rate payers?
Safest conditions are achieved by lowest temperature : (a) The safest conditions are achieved by the lowest temperature and pressure in the flash vessel. (b) Vapor flow to downstream equipment can cause a hazardous situation.
Spill response and cleanup problems associated with water : Explain the spill response and cleanup problems associated with water-soluble liquids
How would you go about estimating the unknowns : Regression through the origin. Consider the following regression through the origin: Yi = βˆ2 X2i + βˆ3 X3i + uˆ i      - How would you go about estimating the unknowns?
What is the present worth now of one bond : If the bond maturity date is 20 years from the date they were issued and the interest rate in the marketplace is now 12% per year, compounded semiannually, what is the present worth (now) of one bond?
Degree of reaction-definition of flow coefficient : Degree of Reaction - Definition of flow coefficient, and the velocity diagram.
Describe the basic strategy in riding the yield curve : Describe the basic strategy in riding the yield curve. Can you ride the yield curve if the yield curve is downward sloping with short term rates above long term rates?
Differences between threshold limit value and permissible : What are the differences between threshold limit value and permissible exposure limit?
What is the face value of a municipal bond that matures : What is the face value of a municipal bond that matures in 20 years and has a bond coupon rate of 6% per year with semiannual payments of $900?

Reviews

Write a Review

Finance Basics Questions & Answers

  Seriously contemplating early retirement fred wants to know

1. which of the following in addition to current arrangements would generate a taxable gift?a. a gift of14000 from the

  Determine present price of stock

Before two years, General Materials and standard Fixtures' stock price were the same Over the first year, General Materials' stock price increased by 10 percent while Standard Fixture's price decreased by 10 percent.

  What will the price be if investors expect that the bond

a 1000 bond has a coupon rate of 10 percent and matures aftereight years. interest rates are currently 7 percent. what

  The merger will result in incremental free cash flows

Volunteer Pizza, a regional pizza chain, is considering purchasing a smaller chain, Eastern Pizza, which is currently financed with 20 percent debt at a cost of 8%. Volunteer's analysts project that the merger will result in incremental free ca..

  Plot the two capital structures on a set of ebit-eps axes

Data-Check is considering two capital structures. The key information is shown in the following table. Assume a 40% tax rate.

  Bowflexs television ads say you can get a fitness machine

1- albert pujols hit 47 home runs in 2009.if his home -run output grew at a rate of 12 percent per year what would it

  What are some of the specific bonds

Identify a mutual fund or ETF that is substantially invested in bonds.

  Compute the net profit margin return on assets total asset

ahl enterprise lists the following data for 2011 and 20102011nbspnbspnbsp2010nbspnbspnbspnet

  Recommend a purposed portfolio to an investment committee

Recommend a purposed portfolio to an investment committee. The committee runs a foundation that has an asset base of $4,000,000. The foundation's dual mandates are to (a) preserve capital and (b) to fund $200,000 worth of scholarships for underprivil..

  What is amcs share price prior to the share repurchase

AMC Corporation currently has an enterprise value of $350 million and $110 million in excess cash. The firm has 10 million shares outstanding and no debt. Suppose AMC uses its excess cash to repurchase shares. After the share repurchase, news will..

  At least 4 different elements of the system why the reports

although she does not report to you you have already begun a series of discussions with the companys management

  Calculate the firm average collection period

Calculate the firm's new receivables balance if the company toughened up on its collection policy, with the result that all non-discount customers paid on the30th day.

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