A bond for ibm maturing

Assignment Help Financial Management
Reference no: EM131975807

A bond for IBM maturing in 14 years and 3 months has quarterly coupon payments of $11.50. If the current interest rate on this bond is 5.25% (i.e. the yield to maturity), which of the following is true? 1)It is a discount bond selling for $935.07 2) It is a premium bond selling for 935.07 3) It is a discount bond selling for $868.12 4)It is a premium bond selling for $868.12 5) There is not enough information here.

Reference no: EM131975807

Questions Cloud

What is price of bond that pays semiannual coupon payments : What is the price of bond that pays semiannual coupon payments, each in the amount of $22.50 if the yield to maturity is 5.75% and the maturity is 8 years away.
Bond with semi-annual coupon payments : Calculate the percentage change in the price over the course of a year for a bond with semi-annual coupon payments based on the following information:
What part of its value is due to growth opportunities : If Trend-Line’s earnings per share will be $9 next year, what part of its value is due to growth opportunities?
Find the price and P-E ratio of the firm if plowback ratio : Find the price and P/E ratio of the firm. Find the price and P/E ratio of the firm if the plowback ratio is reduced to 0.40.
A bond for ibm maturing : A bond for IBM maturing in 14 years and 3 months has quarterly coupon payments of $11.50.
Shares of voting stock outstanding : T Co. has 100 shares of voting stock outstanding. T Co. has operating asset worth $900 and nonoperating assets worth $300. T Co. also has debts totaling $200.
What is the risk-free rate if corporate bond : What is the risk-free rate if a corporate bond yielding 7.1% has a Default Risk Premium of 2.5%, a Maturity Risk Premium of 2.9%
What is the sum of the net working capital : What is the sum of the net working capital AND the market value of fixed assets.
What is the equivalent annual cost of the battery : The tax rate is 30% and cost of capital is 12%. What is the (after taxes) equivalent annual cost of the battery?

Reviews

Write a Review

Financial Management Questions & Answers

  Distributors of servers and video-conferencing technology

United Systems is one of the country’s largest distributors of servers and video-conferencing technology. Recently, the company successfully expanded into three new markets. Comparing the company’s actual sales volume in the new markets to the compan..

  Analyze the companys balance sheet for the past two years

Identify the trend (i.e. increase or decrease) demonstrated by total assets, total liabilities, and total owners' equity for this time period.

  Makes no withdrawals during that period

assuming she makes no withdrawals during that period?

  What is nominal yield to maturity-nominal yield to call

A firm's bonds have a maturity of 10 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 5 years at $1,053, and currently sell at a price of $1,101.31. What is their nominal yield to maturity? What is their nominal yield to ..

  Create claim using the proven technique

Create a claim using the proven technique below to get venture capital money for a new product idea.

  Reinvestment will account for all future earnings growth

Assume further that the return on new investment is 15 %?, and that reinvestment will account for all future earnings growth?.

  What would be the maximum purchase price acceptable

The Ski Pro Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The company is considering the production of cross-country skis.

  What is the duration of this pension fund liabilities

A pension fund manager expects that her fund will need to pay $2.5 million in benefits at the end of each of the next three years. If the fund values its liabilities using a 9% discount rate, what is the DURATION of this pension fund's liabilities

  Purposes of carrying these inventories-raw materials

Define and discuss two purposes of carrying these inventories: raw materials.

  Non annual compounding-lump sum payment

How much will be in the account immediately after you make the first withdrawal? How large must the deposit be?

  Determine the appropriate cost of capital

If your course covered this: What would be the alternative to using the CAPM for determining the appropriate cost of capital?

  The wage of dairy worker rises

Assume we are given a demand schedule that is represented by P = 200,  5Q and a supply schedule where P = 110 + 10Q, where P = Price and Q = Quantity. Dairies make low-fat milk from full-cream milk. In the process of making low-fat milk, dairies prod..

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