What is the total market value of the bonds

Assignment Help Financial Management
Reference no: EM13874748

Debt: 8500 bonds, outstanding with a 7.2% coupon, $1000 par value, 25 years to maturity, current market yield is 5,82%, coupons made semi-annually.

What is the total market value of the bonds? Please show working out.

Reference no: EM13874748

Questions Cloud

Discuss importance of the concept of business intelligence : Discuss the importance of the concept of business intelligence for creating a competitive advantage in e-business and identify and discuss specific business intelligence techniques in terms of their potential impact
Green to gold business playbook by etsy and simmons : From the Book: Green to Gold Business Playbook by Etsy and Simmons. How could vendors be encouraged to participate in Wal-Mart China’s sustainability initiatives? What are the distinguishing features of Wal-Mart China’s distribution system?
Explain the potential role that dojs leniency program have : Explain the potential role that the DOJ's leniency program might have on prosecutions and incentives for price fixing.
Scotland by evacuating the air in a water tank : In 1775, Dr. William Cullen made ice in Scotland by evacuating the air in a water tank. Explain how that device works, and discuss how the process can be made more efficient.
What is the total market value of the bonds : Debt: 8500 bonds, outstanding with a 7.2% coupon, $1000 par value, 25 years to maturity, current market yield is 5,82%, coupons made semi-annually. What is the total market value of the bonds?
What is the dividend yield on this stock under the scenario : Health Systems Inc. is considering a 10 percent stock dividend.  What adjustments would have to be made to the capital accounts for a 10 percent stock dividend? Show the new capital accounts. How many shares would an investor have if he or she origin..
Develop an hr strategy for a current or prospective company : In a paper (1,500-1,750 words), develop an HR strategy for a current or prospective company. Detail the implementation plan for your specific HR strategy. Incorporate concepts learned throughout this course
Conduct a research about normalization : Conduct a search online for tutorials about normalization. Choose three tutorials that you think best teach you about normalization. Share your findings with the class, include the links to those sites, and explain why you chose the three tutorial..
Acceleration of gravity : If superman has a mass of 100 Kg on his birth planet Krypton, where the acceleration of gravity is 25 m/s2, determine

Reviews

Write a Review

Financial Management Questions & Answers

  What is the companys cost of equity capital

The Zombie Corporation’s common stock has a beta of 1.3. If the risk-free rate is 4.4 percent and the expected return on the market is 10 percent, what is the company’s cost of equity capital?

  What will be the steady state receivables balance

Suppose that a clinic has third-party payer revenues of $10,000 a day. On average, it takes the clinic 50 days to collect from its payers. What will be the steady state receivables balance?

  Inclusive have the following common conditions the riskless

inclusive have the following common conditions the riskless interest rate r gt 0 the underlier is trading at a spot

  Valuation of a constant growth stock

A stock is expected to pay a dividend of $2.25 the end of the year (that is, D1 = $2.25), and it should continue to grow at a constant rate of 9% a year. If its required return is 13%, what is the stock's expected price 4 years from today?

  What is the value of the levered firm

An unlevered firm has a cost of capital of 14% and earnings before interest and taxes of $150,000. A levered firm with the same operations and assets has both a book value and a face value of debt of $700,000 with a 7% annual coupon. The applicable t..

  What is total return on investment

Suppose you are a U.S. investor who is planning to invest $245,000 in Japan. You do so at a starting exchange rate of 85.48 ¥/$. Your Japanese investment gains 8.2 percent, and the ending exchange rate is 89.85 ¥/$. What is your total return on this ..

  Define what is the current price of the bond

When it matures at the end of 7.5 years it pays out $1,000. If investors wish to earn 2.35% per year on this bond investment, what is the current price of the bond

  Calculate the depreciation expense

You are given the following information for Calvani Pizza Co.: sales = $45,000; costs = $21,500; addition to retained earnings = $8,750; dividends paid = $1,000; interest expense = $5,500; tax rate = 35 percent. Calculate the depreciation expense.

  Calculate each stocks coefficient of variation

Calculate each stock’s coefficient of variation. Which stock is riskier for a diversified investor? Calculate each stock’s required rate of return. Calculate the required return of a portfolio that has $7,500 invested in Stock X and $2,500 invested i..

  Economic-industry-company and financial analysis

Among the forms of fundamental analysis (economic, industry, company and financial analysis), which type of data do you think is the least reliable, the least relevant to most investors, and the most difficult to acquire?

  Two different bonds currently outstanding

Las Paletas Corporation has two different bonds currently outstanding. Bond M has a face value of $50,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $1,600 every six months over the subsequent eight years, ..

  Determine the amount exporter will receive until maturity

The importing bank's acceptance commission is 1.25 percent and that the market rate for 90-day B/As is 6 percent. Determine the amount the exporter will receive if he holds the B/A until maturity. Determine the amount the exporter will receive if he ..

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