What is the selling price of the bond

Assignment Help Financial Management
Reference no: EM13728226

A bond with face and redemption amount of $3000 with annual coupons is selling at an effective annual yield rate equal to twice the coupon rate. The present value of the coupons is equal to the present value of the redemption amount. What is the selling price of the bond?

Reference no: EM13728226

Questions Cloud

Examination of lending institutions-health care : Use the Internet to research one (1) developing nation of your choice. Your research should include an examination of lending institutions, health care, and human capital, as well as the material covered by the Webtext in Weeks 6 through 9.
Find the total amount for accumulation of discount : A 10-year bond with semi-annual coupons is bought at a discount to yield 9% convertible semi-annually. If the amount for accumulation of discount in the next-to-last coupon (which was denoted by P19) is $8, find the total amount for accumulation of d..
Examination of lending institutions : Use the Internet to research one (1) developing nation of your choice. Your research should include an examination of lending institutions, health care, and human capital, as well as the material covered by the Webtext in Weeks 6 through 9.
Find the amount of the coupon : For a certain period a bond amortization schedule shows that the amount for amortization of premium is $5 and that the required interest is 75% of the coupon. Find the amount of the coupon.
What is the selling price of the bond : A bond with face and redemption amount of $3000 with annual coupons is selling at an effective annual yield rate equal to twice the coupon rate. The present value of the coupons is equal to the present value of the redemption amount. What is the sell..
Validity of patients claims of denial of services : Devise a plan to investigate the validity of patients' claims of denial of services. This plan should include, but not be limited to, establishing mechanisms to address service denial claims, a human resources component, and a review of related po..
Bond is bought to yield convertible semi-annually : Find the price of a $1000 par value 10-year bond with coupons at 8.4% convertible semi-annually, which will be redeemed at $1050. The bond is bought to yield 10% convertible semi-annually for the first five years and 9% convertible semi-annually for ..
Calculate the pressure p and the force t : Calculate the pressure p and the force T per linear mm along the (imaginary) longitudinal seam in the pipe at a point that is 100 metres below the open (free) water surface of the reservoir.
Process of writing your literary analysis draft : As you move forward to reflect on the process of writing your Literary Analysis Draft in Week Three, watch the video Writing the Compare and Contrast Essay, which provides an overview of the writing process.

Reviews

Write a Review

Financial Management Questions & Answers

  Amount of the operating cash flow-long-term debt

The Beach House has sales of $790,000 and a profit margin of 7 percent. The annual depreciation expense is $80,000. What is the amount of the operating cash flow if the company has no long-term debt?

  Invested funds problem

Your uncle has $1,025,000 and wants to retire. He expects to live for another 25 years, and he also expects to earn 7.5% on his invested funds. How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the accou..

  Estimate the cost of capital for gci

You used Dell as a representative company to estimate the cost of capital for GCI. What are some of the potential problems with this approach in this situation? What improvements might you suggest?

  Financial reporting environment for the quarter

Prepare a 2 page newsletter that identifies and summarises developments and changes in the financial reporting environment for the quarter from January to March 2013.

  Task 1 understand the sources of finance available to a

task 1 understand the sources of finance available to a businesstask 1.1 the business bull explain the type of business

  Swot analysis of your business case

SWOT analysis of your business case and PESTEL analysis of your business case

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Company a has days sales outstanding ratio

Company A has a higher day's sales outstanding ratio than Company B. Therefore,

  Fairly compensated for the risk of the firm

The risk free rate is 7%, the return in the market is 10%, and the beta is 1.30. What return must you receive to be satisfied that you are being fairly compensated for the risk of the firm?

  About the constant growth model

Which of the following statements is true about the constant growth model?

  Briefly describe arbitrage pricing model

“Is it not inconsistent to measure risk by standard deviation in mean-variance (portfolio theory) and by beta in the Capital Asset Pricing Model”? Discus. The problems and shortcomings of Capital Asset Pricing Model. Briefly describe Arbitrage Pricin..

  Why are capital gains excluded fromdividend discount model

Why are capital gains excluded from the dividend discount model? Does the exclusion of capital gains limit its validity? How do money managers and investors address this issue?

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