User Account

All Pages

Calculate the current market price of the company

Assignment Help Finance Basics
Reference no: EM132373587

ABC is issuing 8-year bonds with a coupon rate of 7.99 per cent and semiannual coupon payments. If the current market rate for similar bonds is 9.53 per cent, what will be the bond price? Assume each bond has a face value of $1000. If the company wants to raise $1.25 million, how many bonds does the it have to sell?

REQUIRED

(i) Calculate the current market price of the company's bonds

(ii) If the company wants to raise $1.25 million, how many bonds does the it have to sell

Reference no: EM132373587

Questions Cloud

Extra half year or forward a half year : If you have a mid-year calculation is it better to discount back an extra half year or forward a half year? Prove your assertion with the following example:
Simple linear trend analysis : If you were given all the activity data for the past 2 years describe the problems associated with using only a simple linear trend analysis.
Proceeds and invest them for years : At the end of 5 years you take the proceeds and invest them for 12 years at 15 percent. How much will you have after 17 years?
The trailing multiples or the forward multiple : The Trailing Multiples or the Forward Multiple? which one is the best? Why?
Calculate the current market price of the company : (i) Calculate the current market price of the company's bonds (ii) If the company wants to raise $1.25 million, how many bonds does the it have to sell
What was the average bid-ask spread : Assuming that Third Point LLC bought its 8.9 million shares at an average bid-ask of $32.05/$32.13, and paying average broker commissions of 0.18%
What was the average bid-ask spread : Assuming that PSCM sold its 20.2 million shares at an average bid-ask of $48.60/$48.70, and paying average broker commissions of 0.20%
Comparative overview of the languages : Comparative overview of the languages highlighting how they were suitable or not suitable for the creating this type of application is also required.
Projected annual cash flow before interest and taxes : Suppose you have a project with a projected annual cash flow before interest and taxes of $6 million, indefinitely. The initial investment of $18 million

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd