Calculate the bonds price today

Assignment Help Financial Management

Reference no: EM131524901

General Mills has a $1,000 par value, 14-year to maturity bond outstanding with an annual coupon rate of 9.47 percent per year, paid semiannually. Market interest rates on similar bonds are 8.33 percent. Calculate the bond’s price today.

Round the answer to two decimal places.

Reference no: EM131524901

Questions Cloud

What is the fair value of the stock : Shareholders require 12% of return on their investments in companies similar to this one. What is the fair value of the stock?

What was most recent dividend per share paid on stock : If the company maintains a constant 5.75 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?

What is required rate of return on stock : what is the Required Rate of Return on Stock C ?

Was the investment worth undertaking : Determine the current cash flows for each year taking into account the inflation rate. Was the investment worth undertaking? Why?

Calculate the bonds price today : Market interest rates on similar bonds are 8.33 percent. Calculate the bond’s price today.

Adjustable rate mortgages : Suppose the LIBOR remains the same in the second year as it was in the first. What is Ann’s payment in the 2nd year?

Assume semiannual compounding periods : Assume semiannual compounding periods. If the bond had 19 years to maturity when you originally purchased it, what was your total return for the past year?

What amount of the payment will represent interest : When you make the SECOND payment, two years from today, what amount of the $7, 760.67 payment will represent interest?

Using an annual effective discount rate : Then repeat the problem using an annual effective discount rate of 3%. Which is higher? Why?

User Account

All Pages