Calculate the discount or premium if bond is sold to yield

Assignment Help Financial Management
Reference no: EM131905587

1. Find the IRR of an investment having an initial cash outflow of $213,000. The cash inflows during the first, second, third and fourth years are expected to be $65,200, $96,000, $73,100 and $55,400 respectively.  

2. A $10 000, 7.2% bond with semi-annual coupons is purchased three years before maturity. Calculate the discount or premium if the bond is sold to yield 6% compounded semi-annually.

3. Jane purchased a bond for $1000 with a coupon rate of 7.2% on November 10, 2000 that matured in eight years. She sold it on January 26, 2005. What was the market value on that day if the market rate was 7% compounded semiannually?

Reference no: EM131905587

Questions Cloud

What is optimal size of the production run : What is the optimal size of the production run for this can? how many production runs will be required each year in order to meet the annual demand?
What is the semi-annual interest payment on debt : What is the semi-annual interest payment on the debt? What is the total annual cost of the debt? What is interest earned by the fund in 18th payment interval?
Compute the balance in the fund after six years : Determine the size of the quarterly payments into the sinking fund. Compute the balance in the fund after six years.
What semi-annual payments will pay off bond in eight years : What semi-annual payments will pay off the bond in eight years? What is the annual cost of debt? In seven years, what is their book value of debt?
Calculate the discount or premium if bond is sold to yield : Calculate the discount or premium if the bond is sold to yield 6% compounded semi-annually.
What is the book value of the debt in four years : What semi-annual payments do they need to make to reach their goal? What is the annual cost of debt? What is the book value of the debt in 4 years?
Shares of common stock outstanding : Bonaime, Inc., has 7.9 million shares of common stock outstanding. What is the company’s WACC?
New compensation scheme than with the original one : Show that? shareholders' expected earnings are higher with the new compensation scheme than with the original one.
How much does the price of each bond change : If the market rate drops to 6.7% comp. semiannually, how much does the price of each bond change? Which one is worth more?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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