User Account

All Pages

Bond if the required rate of return

Assignment Help Finance Basics
Reference no: EM132473840

You are interested in buying a $1,000 par value bond with 30 years to maturity and a 10% coupon rate that is paid semiannually. How much should you be willing to pay for the bond if the required rate of return (discount rate) is 11%?

Reference no: EM132473840

Questions Cloud

Compute the present value of a deposit : Compute the present value of a $4,200 deposit in year 3, and another $3,700 deposit at the end of year 6 using an 9 percent interest rate.
Expected growth rate in the apple price : Apples curreently cost $1.0 each at the shop and the inflation rate is 10% pa which is the expected growth rate in the apple price.
How would investor company that owns of investee company : How would the investor company that owns 40% of the investee company be impacted if the investee had net income of $1,000 and paid dividends
How does your response compare to secular view of authority : You are in a place of influence in your professional life where you can help people be successful. Describe the relationship and what actions you have taken.
Bond if the required rate of return : How much should you be willing to pay for the bond if the required rate of return (discount rate) is 11%?
Compute the future value in year 7 : Compute the future value in year 7 of a $5,500 deposit in year 1, and another $5,000 deposit at the end of year 4 using an 8 percent interest rate.
What will be effect on balance sheet accounts : What will be effect on Balance sheet accounts(overstated, understated, or no effect)? Income statement accounts (overstated, understated, or no effect)?
What is the answer for question showing working : Compute the present value of $900 paid in three years using the following discount rates: 6 percent in the first year, 7 percent in the second year
What is the difference in interest cost-joe levi : Joe Levi bought a home in Arlington, Texas, for $128,000. He put down 30% and obtained a mortgage for 30 years at 7.50%.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the minimum demand deposits

What is the minimum demand deposits it needs to attract in order to fund this loan if you assume there is a 10 percent average reserve requirement on demand.

  Calculate company current value using the vc method

Similar companies have P/E ratios of 15. Calculate your company's current value using the VC method.

  I need an essay written in spaced paragraph format it

i need an essay written in spaced paragraph format. it needs to be well referenced and guaranteed 21 standard. the aim

  Discuss financial risks

ACC 573 DISCUSSION - Evaluate whether or not you are confident that the models used for predicting bankruptcy would have been adequate to predict the invariable bankruptcy of the company you researched. Provide evidence supporting your position.

  When are tests of simple main effects used

When are tests of simple main effects used, and what do researchers learn from them?- Who developed the rationale and computations for the analysis of variance?

  Running a profitable business

It appears that George is running a profitable business. George is aware you are in an MBA Managerial Finance class and comes to you for advice on his working capital practices. More specifically George asks you to do the following:

  To issue new bonds pettijohn would incur 3 flotation costs

several years ago the pettijohn company sold a 1000 par value noncallable bond that now has 15 years to maturity and a

  What is the portfolio standard deviation

What is the portfolio standard deviation if the Market Standard Deviation (sM) is 20%?

  Review problem on purchased bonds

Tom and Jack purchased bonds on the same day. Both bonds are redeemable at par and have a yield of i = 6% and a face value of $10,000.

  Expected amount of return investment

Assume that an investment is forecasted to produce the following returns: a 10% probability of a $1,400 return; a 50% probability of a $6,600 return; and a 40% probability of a $1,500 return. What is the expected amount of return this investment w..

  Estimate the division value using the dcf approach

a. Estimate the division's WACC. b. Estimate the division's value using the DCF approach.

  Strengths and weaknesses of a business

What is a budget variance analysis and Why is this type of analysis key to determining the strengths and weaknesses of a business?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd