Calculate the bond price today

Assignment Help Finance Basics
Reference no: EM132025256

General Mills has a $1,000 par value, 21-year to maturity bond outstanding with an annual coupon rate of 8.28 percent per year, paid semiannually. Market interest rates on similar bonds are 10.64 percent. Calculate the bond's price today. Please assist.

Reference no: EM132025256

Questions Cloud

Expect a bb rated us corporate bond : Typically you would expect a BB rated US corporate bond to trade at lower credit spread compared to A rated US corporate bond.true or false?
Compute the value of pet food company bonds : Compute the value of Pet Food Company bonds if the market interest rate on this type of bond is 12.41 percent. Please assist.
What is the amount if the washing machine is paid : What is the amount if the washing machine is paid for today? Please assist.
What is the yield to maturity of a 11-year bond : What is the yield to maturity of a 11-year bond that pays a coupon rate of 14.33 percent per year, has a $1,000 par value, and is currently priced at $822?
Calculate the bond price today : Market interest rates on similar bonds are 10.64 percent. Calculate the bond's price today. Please assist.
What is the current market price of the bonds : The current market rate of interest on the Fresh Water, Inc. bonds is 12.20 percent. What is the current market price of the bonds?
How much is this reinvestment worth at the end of year four : John is able reinvest these cash flows at 12.01 percent, compounded annually. How much is this reinvestment worth at the end of year four? Please assist.
What is the formula to help answer question : What is the formula to help answer this question.
What is the value of a bond that has a par value : What is the value of a bond that has a par value of $1,000, a coupon rate of 7.16 percent (paid annually), and that matures in 4 years?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the project depreciation expense

No change innet working capital is expected. Marginal profits will be taxed at a 35 percent rate. If the project's operating cash flow is $1 million, what is the project's depreciation expense? Its net income?

  Pension agency problems

The objective of the pension fund manager for McCanna, Inc., is not the same as the objective of McCanna's employees participating in the pension plan. Why?

  Corporate bonds issued by johnson corporation currently

corporate bonds issued by johnson corporation currently yield 10.5. municipal bonds of equal risk currently yield 6.5.

  What is the rate of return from this investment

An investor purchases a mutual fund share for $100. the fund pays dividends of $3, distributes a capital gain of $4, and charges a fee of $2 when the mutual fund is sold one year later for $105. What is the rate of return from this investment?

  Oannuity pays 5000 on the first day of each year for

you are comparing two annuities with equal present values. the applicable discount rate is 8.75 percent. one annuity

  Operating profit margin

They had interest expense of $25,000. Using this information, what was S&S's operating profit margin?

  What are three major sources of float what are some common

What are three major sources of float? What are some common methods that address float?

  Multibusiness models

From the case study, evaluate the efficiency of eBay's evolving business model within the retail auction industry. Next, compare the key difference of the evolving business models of both eBay and its major competitors.

  Operating cash flow under the best-case scenario

The depreciation expense is $29,600. The tax rate is 34 percent. The sale price is estimated at$14.99 a unit, give or take 1 percent. What is the operating cash flow under the best-casescenario?

  Problem regarding personal investment portfolio

Write an essay of about 3000 words by analyzing your own situation and risk profile (character, life-style, time horizon, objectives, etc), then reflect this is a portfolio of funds or ETF using the examples.

  What is the future value ten years from now of dollor 1000

What is the future value, ten years from now, of $1,000 invested today at a periodic interest rate of 12% compounded annually?

  Find the component costs of debt preferred stock and common

longstreet communications inc. lci has the following capital structure which it considers to be optimal debt 25

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