Bond valuation-two bonds in his portfolio

Assignment Help Financial Management

Reference no: EM131056954

Bond valuation

An investor has two bonds in his portfolio that both have a face value of $1,000 and pay a 9% annual coupon. Bond L matures in 17 years, while Bond S matures in 1 year.

Assume that only one more interest payment is to be made on Bond S at its maturity and that 17 more payments are to be made on Bond L.

What will the value of the Bond L be if the going interest rate is 6%? Round your answer to the nearest cent. $

What will the value of the Bond S be if the going interest rate is 6%? Round your answer to the nearest cent. $

What will the value of the Bond L be if the going interest rate is 10%? Round your answer to the nearest cent. $

What will the value of the Bond S be if the going interest rate is 10%? Round your answer to the nearest cent. $

What will the value of the Bond L be if the going interest rate is 14%? Round your answer to the nearest cent. $

What will the value of the Bond S be if the going interest rate is 14%? Round your answer to the nearest cent. $

Reference no: EM131056954

Questions Cloud

Benchmark price-sales ratio for the company : TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $2,300,000 and there are 170,000 shares outstanding. If the benchmark price-sales ratio for the company is 4.4, how much will you pay for the stock? If the..

Freezing point depression constant : The freezing point of ethanol (C2H5OH) is ?114.6°C. The molal freezing point depression constant for ethanol is 2.00°C/m. What is the freezing point (°C) of a solution prepare bydissolving 50.0 g of glycerin (C3H8O3, a nonelectrolyte) in 200 g of ..

The table below to develop a precedence diagram : 1. Use the table below to develop a precedence diagram 2. Identify the early start and early finish for each task

Depress ethanol freezingpoint : The freezing point depression constant (Kf) for ethanol is 1.99 ºC/m and pure ethanol's freezing point is -114.6 ºC. The density of ethanol is 0.789 g/mL. How much did the dry ice depress ethanol's freezingpoint?

Bond valuation-two bonds in his portfolio : An investor has two bonds in his portfolio that both have a face value of $1,000 and pay a 9% annual coupon. Bond L matures in 17 years, while Bond S matures in 1 year. What will the value of the Bond L be if the going interest rate is 6%? Round your..

Absorbance at equilibrium was measured tobe : Astudent prepared a solution containing 4.98 mL of 0.00200 M Fe(NO3)3 and 3.97 mL of 0.00200 M KSCNin 1.00 mL water. What is the concentration of FeSCN+2 if its absorbance at equilibrium was measured tobe 0.792?

Determine the rated value of the power coefficient cp : Determine the rated value of the power coefficient CP and compare this with the value at the Betz limit. Assume the air density ρ = 1.2 kg/m3

Determine monthly payment if interest is compounded annually : You just bought a new snow mobile for $10,000 and you decided to finance it at 5.00% (APR). You can either finance it for 3 years or 5 years. Determine the monthly payment (equal) if the interest is compounded annually, daily, or continuously. What h..

Percent yield for reaction : This reaction is shown below. You measured out 7.14 mL of oil of wintergreen and 9.59 g of sodium hydroxide (FW = 39.997 g/mol). Experimentally, you produced 6.48 g of salicylic acid. What is your percent yield for this reaction?

User Account

All Pages