Bonds on market making annual payments

Assignment Help Financial Management
Reference no: EM131984805

Page Enterprises has bonds on the market making annual payments, with eight years to maturity, and selling for $1192.83. At this price, the bonds yield 2.98 percent. What must the coupon rate be on the bonds? (Enter your answer as a percentage, omit the "%" sign in your response, and enter your answer with two decimal places. For example, 1.214% should be entered as 1.21.)

Reference no: EM131984805

Questions Cloud

How much will she be paying monthly for the home : She has a good credit score and has qualified for a 3.60% loan interest. How much will she be paying monthly for the home?
Function of a direct object : What would be a sentence containing a embedded finite clause taking the function of a direct object?
What is the coupon rate on bond : Suppose today a 1.94 percent coupon bond sells at par. What is the coupon rate on the bond?
What is one share of this stock worth to you today : Sharpe General Stores is declining so it has announced that it will pay annual dividends of $.80, $.50, and $.50 over the next three years, respectively.
Bonds on market making annual payments : Page Enterprises has bonds on the market making annual payments, with eight years to maturity,
Embed a video of your favorite song or music piece : Embed a video of your favorite song or music piece and explain why you like it. You can also add background information.
Write a program that asks the use to enter some dates : Write a program that asks the use to enter some dates, then the program prints the earliest date the user entered. An input of 0/0/0 stops the program.
Capital gain percentage increase for the coming year : What is the capital gain percentage increase for the coming year if the yield to maturity remains? constant?
Find the expected return and the standard deviation : The shares of a company AVV are currently traded at £50. One risk- free asset is also available on the market.

Reviews

Write a Review

Financial Management Questions & Answers

  Analysts expect dividends to fall to constant growth rate

After that, analysts expect dividends to fall to a constant growth rate of 5% thereafter.

  Compute the semiseparating equilibrium

Show that there exists no pooling and no separating equilibrium. - Compute the semiseparating equilibrium. Does this model formalize the notion of reputational capital?

  Dividend discount model and discounted cash flow model

You have been asked to perform a stock valuation prior to the annual shareholders meeting next week. The two models you’ve selected to value the firm are 1) the dividend discount model and 2) the discounted cash flow model.

  Computed waccbt is

Consider a company with the following: Value of debt is 400 with kd of 8%. Further, assume ke is 18%; rf = 5%; T = 35% and WACCAT = 12.88%.

  Net income and the change in cash and equivalents

PepsiCo for the year 2015 explain the difference between net income and the change in cash and equivalents.

  Significant difference in return between both instruments

For the US economy, for the period 1977-2012 calculate the real interest rate using annual 3- month Treasury bills (secondary market) and 30 year Treasury constant maturity. Show in one graph both series. Do you see a significant difference in return..

  What is the amount of the firm net fixed assets

What is the amount of the firm’s net fixed assets?

  Indifferent between cash now or taking the annuity

You just won the Powerball, as a result you have the choice between taking $250 million today or taking a 20-year annuity. Interest rates are expected to hold at 3.75% over the next 20-years. How much would the annuity need to be annually for you to ..

  Purchase asset portfolio that exactly matches liabilities

A company must pay liabilities of $19000 and $11000 at the end of years 1 and 2, respectively. The only investments available to the company are 1 and 2 year zero coupon bonds with yields 6% and 7%, respectively. Calculate the cost to the company tod..

  What must the coupon rate be on bonds

Barnes Enterprises has bonds on the market making annual payments, What must the coupon rate be on the bonds?

  What is the sum total of cash from operating activities

In a statement of cash flows, what is the sum total of cash from operating activities, cash from investing activities,

  Ethics and compliance in the health care finance environment

Assess the role of ethics and compliance in the health care finance environment.

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