What would be its price relative to the xy

Assignment Help Finance Basics
Reference no: EM13283746

Determine the current market prices of the following $1,000 bonds if comparable raste is 10% and answer the following questions.
XY 5.25% (interest paid annually) for 20 years
AB 14% (interest paid annually) for 20 years
a. which bond has a current yeild that exceeds the yeild to maturity?
b. which bond may you expect to be called?why?
c. if CD, inc., has a bond with a 5.25% coupon and a maturity of 20 years but which was lower rated, what would be its price relative to the XY, Inc., bond? Explain.

Reference no: EM13283746

Questions Cloud

Compute the moons radial acceleration : An undiscovered planet, many lightyears from Earth, has one moon in a periodic orbit. calculate the moon\'s radial acceleration.
Compute the electric potential at the origin : A charge ?1.3 × 10^ ?5 C is ?xed on the x-axis at 9 m, Calculate the electric potential at the origin
Find the magnitude of the turtles average velocity : A turtle ambles leisurely-as turtles tend to do-when it moves from a location with position vector r1,x = 1.49 m and r1,y = -2.77 m in a lettuce garden to another location, find the magnitude of the turtle\'s average velocity
Explain purpose of each stage required in linear supply : Draw a block diagram that shows the various stages required in a linear (conventional) power supply. Explain the purpose of each stage.
What would be its price relative to the xy : Determine the current market prices of the following $1,000 bonds if comparable raste is 10% and answer the following questions.
Find the components of the motorcycles average acceleration : During 9.93 seconds a motorcyclist changes his velocity from v1,x = -37.3 m/s and v1,y = 14.1 m/s to v2,x =-21.9 m/s and v2,y = 29.3 m/s, Find the components of the motorcycle\'s average acceleration
How much less magareit will have than frederico : Both Magareit and Frederico expect to earn an average return of 9.5 percent on their savings. At the end of the twenty years, how much less Magareit will have than Frederico?
Find the charges of the sphere and the rod : A metallic sphere has a charge of +3.7 nC. A negatively charged rod has a charge of -6.0 nC. find the charges of the sphere and the rod
To what voltage would a 60-microfarad capacitor be charged : (a) to what voltage would a 60-microfarad capacitor be charged by a6mA current lasting 10 seconds (b) if the bulb when conducting current and emitting light acts asan 0.1-ohm resistor what is the time constant for discharging this capacitor

Reviews

Write a Review

Finance Basics Questions & Answers

  Estimate firm a cost of equity for the new business

If the riskless rate is 3% and the market return is 8%, estimate Firm A's cost of equity for the new business using the CAPM.

  What is the net present value of this venture

The company does its analysis based on a 10-year store life. We believe the business can be sold for $100,000 after taxes (disposal value) at the end of its 10 year lifer. Using an 10% required return, what is the net present value of this venture..

  How much new capital did the firm derive from the offering

Find a story about a recent primary offering in The Wall Street Journal. Based on the information in the story, indicate the characteristics of the security sold and the major underwriters. How much new capital did the firm derive from the offerin..

  Identify three external environment factors

Choose a product/service (e.g McDonald fastfood, HP computer...) and identify three external environment factors that might have the most important impact on the development of this product/service in three - five years. Explain your answer.

  What is the present value of this business opportunity

If $9,000 is invested in a certain business at the start of the year, the investor will receive $2,700 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 7% per year?

  What are the total current assets

Accounts Payable is $5,173, Short-Term Debt is $288, Inventories are $1,816, Other Current Liabilities are $1,401, and Other Current Assets are $707. What are the Total Current Assets?

  Calculate the new pe ratio of the company

Pacific Energy Company has a new project that will generate additional earnings of $112,000 each year in perpetuity. Calculate the new PE ratio of the company.

  Determine the net cost of the call premium

Buchanan Corporation is refunding $12 million worth of 10% debt. The corporation's tax rate is 35%. The call premium is 9 percent.

  It and hris environment

You and 2 other classmates have decided to start your own business; much like Bill Gates and Steve Jobs did with their friends. After graduation you decide to buy a company that is for sale.

  Which action will hedge against this price decline risk

Suppose you invested heavily in XYZ stock. You expect its stock price may decline in the near future. Which action will hedge against this price decline risk?

  Compute the efficiency variances for direct labor

Compute the efficiency variances for direct labor and direct materials. 2. Provide likely explanations for the variances. Do you have reason to be concerned about your performance evaluation? Explain.

  What is the percentage price change of these bonds

Bond J is a 5 percent coupon bond. Bond K is a 11 percent coupon bond. Both bonds have 13 years to maturity, make semiannual payments, and have a YTM of 8 percent.

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