Assume simple interest between bond coupon dates

Assignment Help Financial Management

Reference no: EM13728254

A $1000 bond with semi-annual coupons, with coupon rate of 6% per annum convertible semi-annually, matures at par on October 15th, 2020. The bond is purchased on June 28th, 2005 to yield the investor a nominal rate of 7% per annum convertible semi-annually. What is the purchase price (i.e. the at price of the bond)? Assume simple interest between bond coupon dates. The following table may be useful:

Date of the Year

April 15th 105

June 28th 179

October 15th 288

Reference no: EM13728254

Questions Cloud

Write an essay is based on the sinclair novel : The essay is based on the Sinclair novel, The Jungle. The essay should be 4-5 pages in length, double spaced and typed. Your essay will not be accepted if it contains more than five spelling errors.

Develop an organizational mission statement : Analyze the specific marketplace situation in detail, including organizational strengths, weaknesses, environmental opportunities, and threats (SWOT analysis). Develop an organizational mission statement

Key concern for international companies : Identifying and developing global leaders is a key concern for international companies. Compare and contrast the skills and context of the traditional, national manager with that of the international manager.

Affected by a stock dividend but not by a stock split : Which of the following balance sheet accounts will be affected by a stock dividend but not by a stock split?

Assume simple interest between bond coupon dates : A $1000 bond with semi-annual coupons, with coupon rate of 6% per annum convertible semi-annually, matures at par on October 15th, 2020. The bond is purchased on June 28th, 2005 to yield the investor a nominal rate of 7% per annum convertible semi-an..

Write an expanded definition for that technical term : write an expanded definition for that technical term for a general audience. 200 word minimum ad for a newspaper

What is the value of the premium : Among a company’s assets and accounting records, an actuary finds a 10-year bond that was purchased at a premium. What is the value of the premium?

Define how social and cultural factor influenced development : Explain how social and cultural factors influenced the development of Freud's and Rogers' respective theories of personality.

Lower internal rate of return and profitability index : Why is it possible for investments to have a higher net present value than a competing investment but still have a lower internal rate of return and profitability index than that competitor?

User Account

All Pages