Calculate the bonds price today

Assignment Help Financial Management
Reference no: EM13723890

General Mills has a $1,000 par value, 12 year bond outstanding with an annual coupon rate of 3.60% per year paid semi annually. Market interest rates on similar bonds are 12.70%. Calculate the bonds price today.

Reference no: EM13723890

Questions Cloud

What we are reading and discussing in class : Please write about 2/3 page for each hour you spend on the activity. Write about what you learned from the experience and how it relates to what we are reading and discussing in class.
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 17.24% (paid annually) and matures in 8 years? Assume a required rate of return on this bond is 13.53%.
Last chance hospital-case study : Question 1: What are some of the planning strategies that Russ might have used that would possibly have positively affected the outcome of the strategic plan execution?
What is the inventory turnover : On January 1, 20X2, the Barnum Company’s beginning inventory was $800,000. During 20X2, Cost of Goods Sold was $1,875,000. On December 31, 20X2, Barnum’s ending inventory was $700,000. What is the inventory turnover for 20X2?
Calculate the bonds price today : General Mills has a $1,000 par value, 12 year bond outstanding with an annual coupon rate of 3.60% per year paid semi annually. Market interest rates on similar bonds are 12.70%. Calculate the bonds price today.
Explain the information literacy research project : Discuss how these sources will help you to place the primary source in its historical context on Research Project: Information Literacy Research Project.
Possible reasons for managements change in emphasis : Present a brief side-by-side comparison of the commentary in the MD&A of 2013 to that of 2012. Were the same business drivers discussed? Were they assigned the same importance by management? Discuss any variations you observed, and the possible reaso..
Purchase of a share of blue grass : You are considering the purchase of a share of blue grass, inc. Common stock. You expect to sell it at the end of one year for $87 per share. You will also receive a dividend of $5.36 per share at the end of the next year. If your required return on ..
Case study- the project contracting : Consider the Project Contracting Case. The fact that the established incentive plan did not fit with current strategic thrusts is obvious. This resulted in significant problems for company X. Yet, a change management plan was not easy to develop. ..

Reviews

Write a Review

Financial Management Questions & Answers

  How do your competencies relate to the essential

1.how can knowing your ideal work culture help you in developing strategic and operational plans to achieve

  Variable costing income statement and absorption statement

For month ended 6/30/X1, there were 1,531 of direct labor hours incurred - Explain how would I begin creating a variable costing income statement and absorption statement?

  What is the implied coupon

If the promised payment on the bond is the same as the issue price of $100, what is the implied coupon if effective interest rates are 3.0% and the bond has a 1-year maturity?

  Explain process for calculating beta and the inputs

As of early September 2010, Wal-Mart's (WMT) beta is 0.33 and Target Stores (TGT) beta is 1.02. Discuss the meaning of these two betas, analytically, by briefly setting forth the process for calculating beta and the inputs to the calculations wher..

  Nonlinear programming problems

Classify the problems as to whether they are pure-integer, mixed-integer, zero-one, goal, or nonlinear programming problems.

  What is the minimum expected annual return for stock

In order to fund her retirement, Michele requires a portfolio with an expected return of 0.11 per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Stock 2, and 25 percent in Stock..

  Biggest environmental challenges of the future

Explain in detail some of the biggest environmental challenges of the future for healthcare financial managers and provide an example of a financial report and then explain in detail the steps in the financial analysis process.

  Before-tax operating costs problem

Firm S is considering adding a robotic device to its production line. The device base price is $1,038,000.00, and it would cost another $21,500.00 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates a..

  Question 1 prepare a short essay for each of the subsequent

question 1 prepare a short essay for each of the subsequent questions. where possible illustrate with an appropriate

  What is the break-even probability of default in part

Air Spares is a wholesaler that stocks engine components and test equipment for the commercial aircraft industry. A new customer has placed an order for eight high-bypass turbine engines, which increase fuel economy.

  What is the default risk premium on keys bonds

Keys Corporation's 5-year bonds yield 7.00%, and 5-year T-bonds yield 5.15%. The real risk-free rate is r* = 3.0%, the inflation premium for 5-year bonds is IP = 1.75%, the liquidity premium for Keys' bonds is LP = 0.75% versus zero for T-bonds, and ..

  Consistent with the aims of islamic banking

A retail customer wishes to purchase a home. She needs to borrow money to buy it. Suggest which products might be useful to them, and how they are consistent with the aims of Islamic banking?

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