What is the price of the bond

Assignment Help Financial Management
Reference no: EM131329244

1. A corporate bond's price is quoted as 98.110. What is the price of the bond if its par value is $1,000?

2. A corporate bond's price is quoted as 102.312. If the bond's par value is $1,000, what is its market price?

Reference no: EM131329244

Questions Cloud

What yield would aaa rated municipal bonds need to offer : Suppose AAA-rated corporate bonds currently offer yields of about 7 percent. Approximately what yield would AAA-rated municipal bonds need to offer to be competitive?
Explain the role of a decision leader in global marketplace : Explain the Role of a Decision Leader in the Global Marketplace. The purpose of this paper is for you to demonstrate your competency in discussing key concepts gained throughout the duration of the term.
What is the nominal interest rate : Investors face a tax rate of 33 percent on interest received from corporate bonds. If municipal bonds currently offer yields of 6 percent, what yield would equally risky corporate bonds need to offer to be competitive?
What is the new par value of the bond : During the first six months that you hold the bond, prices in the United States rise by 2 percent. What is the new par value of the bond, and what is the amount of your first coupon payment?
What is the price of the bond : A corporate bond's price is quoted as 98.110. What is the price of the bond if its par value is $1,000?- A corporate bond's price is quoted as 102.312. If the bond's par value is $1,000, what is its market price?
Present four examples of strategy planning activities : Present four examples of strategy planning activities from four different modules that are designed specifically for your hypothetical organization.
Implementing policies and procedures in an organization : write a 3-4 page paper outlining the importance of using strategy in implementing policies and procedures in an organization. Also, identify any organizational issue and discuss why policies and procedures are important in addressing the issue you..
What is the current yield on a 2 year t bill : The market's consensus forecast is that one-year T-bills will offer 6.25 percent next year. What is the current yield on a 2-year T-bill if the expectations hypothesis holds?
Examine the ratios for the two companies : Examine the ratios for the two companies and explain which company's bonds are likely to have a higher rating and why.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the value of the warrants

CWI is considering whether to raise $1 billion by issuing a unit consisting of $1 billion- 7.5%-10 year subordinated debentures ($1,000 face value each) and 14.71 detachable warrants, each entitling the holder to purchase a share of CWI for $68 payab..

  The market for venture capital refers

The market for venture capital refers to the: A. private financial marketplace for servicing small, young firms. B. bond markets. C. market for selling rights to individuals who already own shares. D. market for selling equity securities for firms wi..

  Future value of multiple annuities-value of retirement plan

Future Value of Multiple Annuities Assume that you contribute $270 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $370 per month for another 20 years. Given a 9.5 percent interest rate, what is the valu..

  Financial responsibilities in your future profession

What comes to your mind when you think of the financial responsibilities in your future profession? How are they different from an accountant's profession? Point our three key points on responsibilities and three key points on differences.

  Calculate the after-tax cash flow at disposal

General purchases an asset for $14850. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. G..

  About the family dispute

"Family Dispute." When Trudy and Mark married, they both had children from previous marriages. After their marriage, Trudy and Mark purchased a home together as tenants by the entirety and lived there for many years. Mark died when he was 93 and Trud..

  What interest rate is the dealer advertising

You are shopping for a car and read the following advertisement in the news- paper: Own a new Tesla! No money down. Five annual payments of just $20,000.You have shopped around and know that you can buy a Tesla for cash for $85,000. What interest rat..

  What is highest price you should be willing to pay for stock

The last annual dividend on KCBT Corporation's common stock, paid yesterday, was $0.50. If you require a rate of return of 10 percent, KCBT has just announced a new product that they expect to cause the company to experience supernormal growth for tw..

  What amount of pension fund reserves

A pension plan has promised to pay out $25 million per year over the next 15 years to its employees. Actuaries estimate the rate of return on the fund's assets will be 5.50 percent. What amount of pension fund reserves (to the nearest dollar) are nee..

  Profit margin and total asset turnover remain unchanged

The board of directors is dissatisfied with lasy year's ROE of 15%. if the profit margin and total asset turnover remain unchanged at 8% and 1.25 respectively, by how much must he total debt ratio (D/A) increase to achieve a 20% ROE?

  Using the net present value and internal rate of return

VIP Chemical Industries is looking to set up a new plant and expand its operations. The company currently has an option to buy an existing building for £480,000, with the necessary equipments to operate the plant costing £320,000. Evaluate whether th..

  Arithmetic-geometric average time-weighted rates of return

Orange Computer, Inc.’s stock prices at the end of the last four years were $25, $27.50, $22.50 and $28.75. Each year they paid a dividend of $1 at the end of each year. What are your arithmetic and geometric average time-weighted rates of return? Wh..

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