Bond at the current market? price

Assignment Help Finance Basics
Reference no: EM131628304

The 8?-year ?$1,000 par bonds of Vail Inc. pay 13 percent interest. The? market's required yield to maturity on a? comparable-risk bond is 10 percent. The current market price for the bond is $$1,080.

a. Determine the yield to maturity.

b. What is the value of the bonds to you given the yield to maturity on a? comparable-risk bond?

c. Should you purchase the bond at the current market? price?

Reference no: EM131628304

Questions Cloud

Explain the ways a swot analysis would contribute : Explain how a SWOT analysis would enable a law enforcement or correctional agency to better benchmark itself against other similar organizations.
Develop a strategic plan for company : Do you think financial managers should develop a strategic plan for their company? Why?
Explain the issues pertaining to budgetary considerations : Explain the issues pertaining to budgetary considerations and how those affect communication, ethics, and coordination.
Explain the influence decision-making process had on outcome : Explain the influence the decision-making process had on the outcome. Evaluate the effectiveness of the process. What stages were most challenging and why.
Bond at the current market? price : What is the value of the bonds to you given the yield to maturity on a? comparable-risk bond? Should you purchase the bond at the current market? price?
Describe the applicable law and rationale : If the New York state statue is challenged as being unconstitutional, what is the likely result. Describe the applicable law and rationale for your conclusion
Yield to maturity on similar : If they receive an A? rating, the yield to maturity on similar A bonds is 10.5percent. What will be the price of these bonds if they receive either an A or a AA
Write about elon musk and give a brief history who he is : Write about Elon musk and give a brief history who he is. Write about the Tunnel in NYC. Write about the Tunnel in LAX. Write about the boring company.
Determine the factors most responsible for any changes : Compare your viewpoint toward the U.S. Court system now with your viewpoint of the system at the beginning of this course.

Reviews

Write a Review

Finance Basics Questions & Answers

  How would calculate the current value of a stock

How would one calculate the current value of a company like Apple? Apple did not pay a dividend from 1995-2012 which made the dividends 0 for many periods. How would calculate the current value of a stock during such periods?

  Maximizing shareholder value and ethical responsibility

How do the costs of the clean up and the fines pertain to a discussion of maximizing shareholder value and ethical responsibility?

  Using inventory as short-term loan collateral

For the following methods of using inventory as short-term loan collateral, describe the basic features of each, and compare their use: (a) Floating lien, (b) Trust receipt loan, and (c) Warehouse receipt loan.

  The income statement and the operating section

The income statement and the operating section of the cash flow statement present a company's results in very different formats. In your opinion, which statement is more important to shareholders? To company management? To creditors? Explain your res..

  Current ratio measure

Determine what financial information does the current ratio measure and when you calculate a current ratio, what does the calculated number mean?

  What will be the firm quick ratio

What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds?

  Capital investment decisions

John Adams is a cash receipts clerk for Boro Corporation He earns payments from customers and records the payments to the customers' accounts

  What is a journal

Suzanne knows that an increase to an expense reduces retained earnings (a stockholders' equity account). However, she also knows that expense accounts.

  Considerations in determining the proper mix of retention

What are the main considerations in determining the proper mix of retention and transfer in handling potential loss exposures?

  Compute avoidable interest for sage company

Compute avoidable interest for Sage Company. Use the weighted-average interest rate for interest capitalization purposes. (Round percentages to 2 decimal places, e.g. 2.51% and final answer to 0 decimal places, e.g. 5,275.)

  What is the current value of one share of this stock

The company just paid its annual dividend in the amount of $1.50 per share. What is the current value of one share of this stock if the required rate of return is 7.00 percent?

  Comparative financial ratio information about a company

1. Rate the following five websites from best to worst for finding comparative financial ratio information about a company. Explain. 2. What might you do if you fail to find comparative financial ratio information and need the data to complete an i..

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