What will the percentage change in the price of this bond

Assignment Help Financial Accounting
Reference no: EM13825890

A 15-year, 4 percent coupon bond with a face value of $1,000 pays interest semiannually. Assume the bond currently sells at par. What will the percentage change in the price of this bond be if market rates increase by 10 percent?

1.32%

-1.32%

1.96%

-1.96%

-1.13%

Reference no: EM13825890

Questions Cloud

What is the expected value for the best decision : For the payoff table below, the decision maker will use P(s1) = .15, P(s2) = .5, and P(s3) = .35. What is the expected value for the best decision
Harvard case study ford motor company value enhancement plan : Case Study: Ford Motor Company's Value Enhancement Plan (A), Harvard Business School, 9-201-079.
Calculate the cost of the companys retained earnings : The corporate treasurer of Rollinsford Company expects the company to grow at 3% in the future, and debt securities at 4% interest (tax rate = 35%) to be a cheaper option to finance the growth. The current market price per share of its common stock i..
A report on patient assessment on 5 dimensions of health : Write a report on patient assessment on 5 dimensions of health
What will the percentage change in the price of this bond : A 15-year, 4 percent coupon bond with a face value of $1,000 pays interest semiannually. Assume the bond currently sells at par. What will the percentage change in the price of this bond be if market rates increase by 10 percent?
What is the yield to maturity-bonds issued : The bonds issued by North & South bear a coupon rate of 7.5 percent, payable semiannually. The bonds mature in 6.5 years, sell at par, and have a $1,000 face value. What is the yield to maturity?
Performance evaluation system in force : You have recently been appointed as the senior management accountant in a large listed company, Apple plc. Apple plc produces a wide variety of differently products (candy bars, chews and other sweets) in batches using various combinations of high..
What is the forecast for june based on a three-month average : What is the forecast for June based on a three-month weighted moving average applied to the following past demand data and using the weights
What is governments strategy in enhancing the globalization : The question is relates to Economics, mainly to Macroeconomics and it is an essay about the government's strategy to enhance globalization in South Africa in terms of two major sectors.

Reviews

Write a Review

Financial Accounting Questions & Answers

  How would journal entities look at acquisition of funds

You are believer that new employees should practice their accounting skills before "throwing them into the fire." Therefore, you have listed a series of transactions that require journal entries and updating of T-Accounts.

  Dividend be divided between the common and preferred stock

Mega, Inc., has common and 6 percent preferred stock outstanding as follows: Preferred stock: 10,000 shares, $100 par value, cumulative Common stock: 50,000 shares, $50 par value The company declares a total dividend of $225,000. If the dividends on ..

  Credit card company had the following inventory data for

credit card company had the following inventory data for the current month.beg inventory 10 units 50. 5001st

  Budgeted financial statements of fabor fabrication

The following information is from the manufacturing budget and the budgeted financial statements of Fabor Fabrication:

  Compute the total cost of units in ending work-in-process

Compute the total cost of units transferred out using the weighted-average method and weighted average method.

  Recording sales gross and net

(Recording Sales Gross and Net) On June 3, Arnold Company sold to Chester Company merchant- dice having a sale price of $3,000 with terms of 2/10, n/60, f.o.b. shipping point. Prepare journal entries on the Arnold Company books to record all the even..

  What is the maximum profit that missou mining company

Identify any costs in the the problem that are not relevant to this decision and What is the maximum profit that Missou Mining Company can expect to earn from the production of the 400,000 tons of Alpha

  What were the important characteristics of the reform

What were the corporate scandals that led to its creation? What were the important characteristics of the reform? What steps did the reform take to improve accounting accuracy? What steps did the reform take to improve accountability?

  Prepare a statement of cash flows the indirect approach

The only entries in the Retained Earnings account were for net income and dividends of $29,000 and $20,000, respectively. No buildings were sold during the period and stock was issued for cash.

  Evaluate the value of the goodwill

Evaluate the value of the goodwill if Stillman pays $1,361,800 for EKC.

  Equivalent units of conversion

If the Distillation Department’s ending inventory on December 31 is comprised of 10,000 equivalent units of direct materials and 2,000 equivalent units of conversion, how many units were started and completed by the department during December?

  Determine net income for nomar for 2013

Determine net income for Nomar for 2013. Ignore income taxes and prepare the journal entries to record the costs incurred and gross profit recognized in 2013 on the construction project.

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