Calculate annual coupon interest payments

Assignment Help Finance Basics
Reference no: EM131380255

Finance questions

Go towww.nyse.com Click on Data &Tech, under Data &Tech Resources choose Listed Quotes - scroll down, under Bonds click onView Directory. In the window "Issuer name" type the name of the company on your choice. Click Go. Answer the questions below

1. Copy the quotation of one bond that contains the price "Last Trade Price". Present these quotations in your posting.

2. Describe the information that you received from the quote of the bond. You have to explain each number and symbol that appears in the bond quotation.

3. Assume that par value of the bond is $1,000. What was the last price of the bond in $$ (listed in Last Trade Price)?

4. Assume that par value of the bond is $1,000. Calculate annual coupon interest payments.

5. Assume that par value of the bond is $1,000. Calculate current yield of the bond.

6. Assume that par value of the bond is $1,000. Assume annual coupon payments. Calculate YTM of the bond using the last price (listed in Last Trade Price). (Round the number of years to the whole number). You should use Excel or financial calculator. Show your work

7. Describe one major shortcoming for YTM and current yield.

8. How would the following affect the yield on newly issued bond? Please explain your answer.

a) The bonds are callable.
b) The bonds are subordinated to the existing bond issue.
c) The bond rating is better or worse than the Moody's Aa3 that the company anticipates.

Reference no: EM131380255

Questions Cloud

Compare and contrast two learning theories : Compare and contrast two learning theories. Which one do you believe is most effective? Why?
Discuss why it is important to evaluate training : Discuss why it is important to evaluate training. Which evaluation is more important: summative or formative? Explain why you chose that evaluation type using specific examples to support your answer.
Describe the situation and variables that prompted change : Think back to a time when you have worked for a supervisor who moved from one leadership style to another based on situational variables described in the Long and Spurlock (2008) article. Describe the situation and variables that prompted the chan..
Determine the appropriate sales price for the drug : Current demand for the drug is 100 units, and the estimated elasticity is 2.5. Assuming a linear demand curve, determine the appropriate sales price (in euros) for the drug.
Calculate annual coupon interest payments : Assume that par value of the bond is $1,000. What was the last price of the bond in $$ (listed in Last Trade Price)? Assume that par value of the bond is $1,000. Calculate annual coupon interest payments.
What type of market structure is the market for vegetables : What would be a more appropriate revenue based strategy for Coles and Woolworths to undertake in regards to pricing? What type of market structure is the market for vegetables in which farmers who supply the supermarkets operate
What price should you charge for game console : A price between $200 and $400 is under consideration. Estimated demand for the game console is shown in the following table. What price should you charge for game console?
What about you and your behavior makes you think so : How is personality defined? What do we mean by "personality traits?" Name and describe in some detail each of the Big Five personality traits. If you completed the NEO (see p. 62) or another personality scale based on the five-factor model, whi..
Explore the employers section : Use the Department of Labor's Employment and Training Administration website and find the area on Registered Apprenticeship. Explore the Employers section.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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