Determine total expenditure, Finance Basics

Assignment Help:

Determine the amount you would be willing to pay for a $1,000 par value bond paying $80 interest each year (annual) and maturing in 12 years, assuming you wanted to earn a 9% rate of return. 

a

Interest per year

   

 mce_markernbsp;                              80.00

b

Years to maturity

   

12

c

Par value

     

 mce_markernbsp;                        1,000.00

d

Required rate of return

 

9%

e

Intrinsic value of bond

 

 mce_markernbsp;                           928.39

 

($1000/1.09^12 + $80 x PVIFA(12,9%)

 

 

 


Related Discussions:- Determine total expenditure

Example of debt finance, Example of Debt Finance An example: Intere...

Example of Debt Finance An example: Interest = 10% tax rate = 30% The effective cost of debt (interest) = Interest rate (1 - T) = 10%(1-0.30) = 7% Consider comp

Annual percentage rate, A current radio advertisement states that the avera...

A current radio advertisement states that the average American household has an average credit card debt of $25,000. Based on an APR (Annual Percentage Rate) of 18% (common for cre

Earnings method or earning basis valuation, Earnings Method or Earning Basi...

Earnings Method or Earning Basis Valuation By using the earning valuation method, a company will employ its P/E ratio to value its shares. P/E    =  MV/E MV    =   E x P

What are the functions of stock exchange, What are the Functions of Stock E...

What are the Functions of Stock Exchange Main functions performed b stock exchange are as follows: (1) Providing Liquidity and Marketability to existing securities: Sto

Formation of sole proprietorship business, Formation of Sole Proprietorship...

Formation of Sole Proprietorship Business When an individual plans to start a business, his or her main objective is to earn profit but there are a number of factors to take in

Basic economic order quantity model , Basic economic order quantity (EOQ) m...

Basic economic order quantity (EOQ) model  This model is one of the oldest and most commonly used in inventory control. It is based on a number of assumptions:  The dem

Getting money, how i can get enough money with out doing any works ???????...

how i can get enough money with out doing any works ????????????

Determine inventories of a firm, A firm's current ratio is 1.5, and its qui...

A firm's current ratio is 1.5, and its quick ratio is 1.0. If its current liabilities are $10,000, what are its inventories?   a Current Ratio

Mony and finance, mony is differnt from wealth and income

mony is differnt from wealth and income

PERDIEM CLAIM, how to make a perdiem claim format to maintain the records o...

how to make a perdiem claim format to maintain the records of staff

Write Your Message!

Captcha
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