Solution-What should the price of your bond be

What should the price of your bond be

Assignment Help Finance Basics

Reference no: EM131175252

Bond Yields

You have a treasury bond that pays $100 one year from today and $1,100 two years from today.

You notice that the yield-to-maturity on a one year-zero coupon treasury bond is 1% and the yield-to-maturity on a two year-zero coupon treasury bond is 2%. What should the price of your bond be?

*Make sure to input all currency answers without any currency symbols or commas, and use two decimal places of precision.

Reference no: EM131175252

Questions Cloud

What is the annual yield-to-maturity of the bond : What is the annual yield-to-maturity of the bond? (I.e., what is the discount rate one needs to use to get the price of the bond given the future cash flow of $100 in one year?)

What is the firm sustainable growth rate : What is the firm's sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

Probability of selecting a random sample : The distribution ages for student at the state college is positively skewed with a mean of µ = 21.5 and a standard deviation Ó = 3. What it the probability of selecting a random sample n = 4 students with an average age greater than 23? (CAREFUL:..

What are the elements of the crime of stalking : What are the elements of the crime of stalking under the statute discussed in this case? Do you agree with the court of appeals that the statute is not unconstitutionally vague?

What should the price of your bond be : You have a treasury bond that pays $100 one year from today and $1,100 two years from today. You notice that the yield-to-maturity on a one year-zero coupon treasury bond is 1% and the yield-to-maturity on a two year-zero coupon treasury bond is 2%..

Identify reorganizational changes and their impact on team : Identify two reorganizational changes and their impact on the team. Identify two specific ways you will inform your supervisor of plans and progress. Identify five action items required in order to implement the change.

How much should she pay now to buy this investment : Dave has decided to purchase a $40,000 boat. He can either pay the whole amount now, or accept the dealer's terms of $10,000 down payment, and successive payments of $10,000, $9000, $9000 and $9,000 at the end of each of the next four years.

Should the new grinder be bought : The salvage value of the new grinder is estimated at Sh.210,000. The market value of the old grinder, today, is Sh.4 million. It is estimated to have a zero salvage value after 5 years. The company's tax is 30% and the after tax cost of capital ..

What is the firm roe : A firm has a tax burden of 0.9,a leverage ratio of 1.5, an interest burden of 0.7, and a return-on-sales ratio of 9%. The firm generates $2.54 in sales per dollar of assets. What is the firm's ROE?

User Account

All Pages

What should the price of your bond be

Reference no: EM131175252

Reference no: EM131175252

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT