Reference no: EM13980733
Consider an five-year, 12 percent annual coupon bond with a face value of $1,000. The bond is trading at a rate of 9 percent. a. What is the price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
a. What is the price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
b. If the rate of interest increases 1 percent, what will be the bond’s new price? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
c. Using your answers to parts (a) and (b), what is the percentage change in the bond’s price as a result of the 1 percent increase in interest rates? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
d. Repeat parts (b) and (c) assuming a 1 percent decrease in interest rates. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))
|
Anticipates interest rates
: Jacquie plans to deposit $3500 into her savings account for each of the next 5 years, and then $2000 per year for 5 years after that (all at the year end) she anticipates interest rates to be 6% for the next 3 years and then 9% thereafter. How much w..
|
|
What is the present value of these cash flows
: Investment X offers to pay you $7,900 per year for 9 years, whereas Investment Y offers to pay you $10,800 per year for 5 years. If the discount rate is 8 percent, what is the present value of these cash flows? If the discount rate is 20 percent, wha..
|
|
What is the average current supplied to the cars motor
: After 7.88 seconds, the car, which is initially at rest, reaches a speed of 2.35 m/s. What is the average current supplied to the car's motor?
|
|
Accumulated in the account if the interest rate applied
: A person increases the amount of money he invests $10 per month. He invests $100 on the first month and makes a total 24 payments. How much will be accumulated in the account if the interest rate applied was 6% simple and compounded monthly?
|
|
Annual coupon bond with a face value
: Consider an five-year, 12 percent annual coupon bond with a face value of $1,000. The bond is trading at a rate of 9 percent. What is the price of the bond? If the rate of interest increases 1 percent, what will be the bond’s new price?
|
|
The net profit margin is
: You are given the following financial data for Company A: Cash = $6,000; inventories = $1,000; accounts receivable = $700; other current assets = $500; long-term assets = $1,000; accounts payable = $800; other current liabilities = $4000; net income ..
|
|
Description of the disease or condition
: The infographic should contain the following: A description of the disease or condition. Data on incidence and prevalence presented in graphic form
|
|
What is angle between emerging ray and normal to interface
: Where does the laser beam emerge from the block and what is the angle between the emerging ray and the normal to the interface?
|
|
Describe the different types of debt securities
: Form a discussion on the possible determinants of market interest rates. For each determinant offer illustration for when that determinant may tend to be either stronger or weaker and what is the driving force for that differential impact. Describe t..
|