Amount of interest payment

Assignment Help Finance Basics
Reference no: EM133070017

An issue of semiannual coupon, 8 years to maturity corporate bonds are selling at par and have an effective annual yield of 8.6285 percent. What is the amount of each interest payment if the face value of the bonds is $1,000?

Reference no: EM133070017

Questions Cloud

Find required return for unlimited sunshine limited : Last year, Unlimited Sunshine Limited issued preference shares for $10.00 per share. However, the preference share price has fallen since these were issued. If
Determine the risk premium required by investors : I. The CAPM points out that rational investors should be compensated for unique risk.
Implications of excess liquidity : What are the implications of excess liquidity for the stability of the financial sector? Is excess liquidity as serious an issue as the author expresses?
Market-capitalization rate for risk metrics : The market-capitalization rate on the stock of Flexsteel Company is 12%. The expected ROE is 13%, and the expected EPS are $3.60. If the firm's plowback ratio i
Amount of interest payment : An issue of semiannual coupon, 8 years to maturity corporate bonds are selling at par and have an effective annual yield of 8.6285 percent.
What is annual need in today dollars : Grady Zebrowski, age 25, just graduated from college, accepted his first job with a $45,000 salary, and is already looking forward to retirement in 45 years.
Evaluating a proposal from british subsidiary : XYZ Company from Australia is evaluating a proposal from its British subsidiary ABC to build a new plant in the United Kingdom. The expected after-tax nominal
Nominal rate of interest on the bond : A 20-year bond with a principal value of $1,000,000 was issued 5 years ago, has a coupon rate of 10% with interest paid semi-annually and is priced at $100:
Questions about earnings announcement : a). When examining return reactions to earnings announcements we focused on the earnings surprise. Describe one way to define the earnings surprise.

Reviews

Write a Review

Finance Basics Questions & Answers

  What would be the future value of the annual savings

Shaan and Anita currently insure their cars with separate companies, paying $650 and $575 a year. If they insure both cars with the same company.

  Review problem of greystone inc

The 2014 balance sheet of Greystone, Inc., showed current assets of $3719 and current liabilities of $1780. The 2015 balance sheet showed current assets.

  Explain your procedures in auditing the provision

ABC Bank is one of the second-tier banks in Hong Kong, providing a variety of banking services and products to a broad range of customers in Hong Kong.

  Compute the value of acme common stock

Compute the value of Acme Common Stock if the next dividend is expected to be $1.20 per share. Investors require a 9% rate of return on stocks with the same risk as Acme.

  Explain the appropriateness of the black-scholes framework

1) The Canadian dollar today is worth $0.625 U.S. For one-year maturity, the continuously compounded risk-free of return in Canada is 3% and, in the U.S., it is

  Depict all the known relevant cash flows on a time line

The company has determined that the existing line could be sold to a competitor for $250,000.

  Examples of compliance information

In this case, what are some examples of compliance information that apply to the two areas in which they are responsible?

  Ejh has a beta of 12 csh has a beta of 06 and kms has a

ejh has a beta of 1.2 csh has a beta of 0.6 and kms has a beta of 1.0. if you put 25 of your money in ejh 25 in csh

  What factor would determine which value you chose to use

Personal Finance Question: What is the present value of CD with 4% annual interest that matures in 1 year with the value of $3000? What is the future value?

  Examining the formula for the given condition

At the last Board of Directors meeting of Williams Enterprises, it was decided to encourage the current CEO by giving a substantial bonus.

  Various components of internal control

What are the various components of Internal Control? How would I explain management's role in establishing a good internal control environment?

  Identify two financial intermediaries

Identify two financial intermediaries. What are their respective functions? What are their major roles in the economy?

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