Assume a required rate of return on this bond

Assignment Help Financial Management

Reference no: EM13728531

What is the value of a bond that has a par value of $1000 a coupon rate of 13.71 percent (paid annually) and that matures in 3 years? Assume a required rate of return on this bond is 6.83 percent

Reference no: EM13728531

Questions Cloud

What is the yield to call for these bonds : Alex plans to purchase a callable bond of Horizon Inc. The bond is 20-year to maturity, carry 10.5% annual coupon, paid semi-annually, and have a$1,000 par value. The bond is selling now for $1,187.40 each. The bond can be called back in 5 years at a..

Compute the no-arbitrage price of a treasury note : Suppose an investor would like to buy 200 Treasury notes. The investor wants notes with an annual coupon rate of 7%, a 3-year maturity, and semi-annual coupon payments. Assume each Treasury note has a par value of $1,000. Assuming the yield curve is ..

Disadvantages of standardizing the marketing mix worldwide : Corona beer is the number one imported beer into the United States, and has developed into a global brand (General Distributors, Inc., n.d.). Describe three advantages and three disadvantages of standardizing the marketing mix worldwide

Market interest rates on similar bonds : Blue lake inc has a $1000 par value, a 15 year bond outstanding with an annual coupon rate of 6.6% per year, paid semi annually. Market interest rates on similar bonds are 8.6%. Calculate the bonds price today

Assume a required rate of return on this bond : What is the value of a bond that has a par value of $1000 a coupon rate of 13.71 percent (paid annually) and that matures in 3 years? Assume a required rate of return on this bond is 6.83 percent

Describe the basic principle of dcfs : Describe the basic principle of DCFs and how it can be used to compare different streams of cash flows

Case study on training assessment : Case Study on Training Assessment. Training assessment is an important task for HR personnel. Use the Argosy University online library and textbooks to read about training assessments.

Calculate production cycle and collection cycle : Calculate production cycle, collection cycle, and accounts payable cycle. Should the company decrease cash conversion cycle? Please explain your answer.

Empowerment approach to achieve organizational effectiveness : Clarify the salient roles of the supervisor who draws from an empowerment approach to achieve organizational effectiveness.

User Account

All Pages