Bond annual interest divided by its face value

Assignment Help Financial Management
Reference no: EM131322250

1. What is the future value of $5700 invested for 18 years at 9% compounded annually?

A. $28511.15

B. 26887.59

C. 27520.22

D. 27513.06

E. 26397.74

2. A bond's annual interest divided by its face value is

A. Call rate

B. Market rate

C. Yield to maturity

D. Current yield

E. coupon rate

Reference no: EM131322250

Questions Cloud

Estimate what change in interest rate next year : Suppose that a bank has $10 billion of one-year loans and $30 billion of five year loans. These are financed by $35 billion of one-year deposits and $5 billion of five-year deposits. The bank has equity totaling $2 billion and its return on equity is..
The interest is compounded annually : Bob needs to invest $5318 today in order for his savings to be worth $8000 in 6 years. Which term refers to $5318? You have $500 today and want to triple your money in 6 years. What interest rate must you earn if the interest is compounded annually?
The cost of financing the government deficit : In the article S&P Downgrades Debt Rating of US for the First Time, the authors discussed S&P downgrading US debt. Assuming the financial markets believe that the S&P's downgrade is warranted. Then the diengeade will ____ the cost of financing the go..
Is there a true risk-free portfolio : Is the Morkowitz Theory the best Approach for all Portfolios? Explain Markowitz’s train of thought about why investors should seek an efficient portfolio. Is there a True Risk-Free Portfolio?
Bond annual interest divided by its face value : What is the future value of $5700 invested for 18 years at 9% compounded annually? A bond's annual interest divided by its face value is.
Decided to invest in an upgraded potato slicing machine : Kelly owns a potato chip manufacturing business. Since the demand for her gourmet potato chips is on the rise, Kelly has decided to invest in an upgraded potato slicing machine that will slice potatoes four times as fast as her previous machine. The ..
The sale of shares between individual investors : What is the market called that facilitates the sale of shares between individual investors? A broker is an agent who.
Equal annual end-of-the-year cash flows : You have accumulated $1,269,650 for your retirement. How much money can you withdraw for the next 17 years in equal annual end-of-the-year cash flows if you invest the money at a rate of 8.17 percent per year compounded annually.
The basis used to calculate his gain or loss : Reggie purchased 100 shares of SportsFan, Inc. five years ago for $5,000. He just gave those shares to his son, R.J, and the value of the 100 shares of stock on the date of the gift was $1,000. If R.J. subsequently sells the shares of SportsFan, Inc...

Reviews

Write a Review

Financial Management Questions & Answers

  What are the components of a financial planning model

What two horizons must companies plan for? How long is the short-term? What do the long-term financial planning focus on? Who proposes the capital expenditures and who does the strategic planning? What are three reasons financial plans are done? What..

  Important deeper causes for firms capital structure

How did most new equity shares for large S&P 100 firms enter the financial markets? -  What are the important deeper causes for firms' capital structures?

  The risk-free rate and market risk premium

Suppose that two firms, A and B, are considering the same project. The project is in the same risk class as firm A's overall operations. The project has an IRR of 13.0 percent. Firm A has a beta of 1.2, while firm B's beta is 0.9. The risk-free rate ..

  What is the flotation cost adjustment

Barton Industries expects next year's annual dividend, D1, to be $1.80 and it expects dividends to grow at a constant rate g = 4.5%. The firm's current common stock price, P0, is $22.90. What is the flotation cost adjustment that must be added to its..

  Calculate the declining-balance depreciation

Oil Company has purchased production facilities for $2 million and has put them into service. Calculate the declining-balance depreciation (200% declining balance) for a five-year depreciation life.

  Declining stock market index due to lower share prices

A declining stock market index due to lower share prices _____.

  Target debt- equity ratio-what is the cost of equity

Blue Bull, Inc., has a target debt- equity ratio of .55. Its WACC is 8.1 percent, and the tax rate is 35 percent. a. If the company’s cost of equity is 11 percent, what is its pretax cost of debt? b. If the aftertax cost of debt is 3.8 percent, what ..

  Operating results-what is net income

Quarles Industries had the following operating results for 2015: sales = $29,500; cost of goods sold = $19,760; depreciation expense = $5,260; interest expense = $2,640; dividends paid = $1,450. At the beginning of the year, net fixed assets were $17..

  Bonds is trading at premium

Which of the following bonds is trading at a premium?

  what is Janjigians MVA

Over the years, Janjigian Corporation's stockholders have provided $15,250 of capital, part when they purchased new issues of stock and part when they allowed management to retain some of the firm's earnings. The firm now has 1,000 shares of commons ..

  Systematic risk associated with the returns on twitter stock

In February 2014 the risk-free rate was 4.06 percent, the market risk premium was 8 percent, and the beta for Twitter stock was 1.37. What is the expected return that was consistent with the systematic risk associated with the returns on Twitter stoc..

  What interest payments do bondholders receive each year

Common Products has issued its $.0001 par value stock in two separate financing transactions. Transaction 1: five years ago, the founder of the company purchased 4,000,000 shares of stock for $100,000.  If it currently has a yield to maturity of 5.5%..

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