Calculate the fair present values of the bonds

Assignment Help Financial Management
Reference no: EM131819209

Calculate the fair present values of the following bonds, all of which pay interest semiannually, have a face value of $1,000, have 8 years remaining to maturity, and have a required rate of return of 15 percent.

a. The bond has a 7 percent coupon rate. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

  Fair present value     $

b. The bond has a 9 percent coupon rate. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

  Fair present value       $  

c. The bond has a 15 percent coupon rate. (Do not round intermediate calculations.)

  Fair present value       $

Reference no: EM131819209

Questions Cloud

With respect to valuation-stocks and bonds are dissimilar : With respect to valuation, stocks and bonds are dissimilar in that
Considered to be institutional investor : Which of the following is(are) used to develop a stock's intrinsic value? Which of the following is not considered to be an institutional investor?
Move up or down and the longer is bond term : As interest rates move up or down and the longer is a bond's term. Determine the common stock for Bertinelli Corp. based on the following information:
Sec in investigating claims of financial or investment fraud : What are the responsibilities and/or obligations of the SEC in investigating claims of financial or investment fraud?
Calculate the fair present values of the bonds : Calculate the fair present values of the following bonds,
Maturity pays an interest payment semiannually : A $1,000 par value bond with four years left to maturity pays an interest payment semiannually with a 5 percent coupon rate
Compute the standard deviation of the returns : Swift Manufacturing is evaluating an asset purchase. Compute the range of possible rates of return. Compute the standard deviation of the returns.
Company by using the free cash flow valuation model : Estimate the value of Nabor? Industries' entire company by using the free cash flow valuation model.
Increase in interest rates will impact the stock price : How do you think an increase in interest rates will impact the stock price of Apple?

Reviews

Write a Review

Financial Management Questions & Answers

  Daily variance and daily standard deviation

Create a column of daily returns and compute the daily (arithmetic) average return, the daily variance, and the daily standard deviation.

  Calculate the cost of not taking a cash discount

Calculate the cost of not taking a cash discount. (Use 365 days in a year. Do not round intermediate calculations. Round the final answers to 2 decimal places.)

  Bond investments are less risky than equity investments

What would you suggest they do? Do you agree that bond investments are less risky than equity investments?

  Firm operating cycle and its cash conversion cycle

Describe what the differences are between the firm's operating cycle and its cash conversion cycle? Which one do you think would be more important than the other to you as a business/company owner and why did you form that opinion?

  What will be optimal cash return point

The trading cost per sale or purchase of marketable securities to be $280 per transaction. What will be its optimal cash return point?

  What is the future worth of each project

Tempura Inc. is considering two projects, and must do one of them. Project A requires an investment of $44,000. Estimated annual receipts for 20 years are $24,000; estimated annual costs are $12,500. What is the future worth of each project?

  Staffing-training-recruitment-retention

Select a health care organization (local or national, large or small, public or private) and perform a needs assessment/gap analysis.

  What is your portfolios expected return

A risky asset has an expected return of 12% and standard deviation of 18%. The risk-free rate is 6%. If you invest 40% of your funds in the risk-free asset and 60% of your funds in the risky asset, What is your portfolios expected return? What is you..

  Calculate the sustainable growth rate of the company

Johnson Products earned $3.10 per share last year and it paid out $.75 dividend. The company’s ROE is 16%. Calculate the dividend payout ratio; Calculate the sustainable growth rate of the company.

  What was the firms cash flow from financing activities

A firm paid dividends of $10,000, paid interest of $20,000, reduced debt principal outstanding in the amount of $100,000, and sold new stock for $150,000 what was the firms cash flow from financing activities

  Main differences between the money market securities

Briefly describe the main differences between the following money market securities:

  Investments performance compared with the performance

Pretend that you have $10,000 to invest for four weeks. You are to "in. Why you selected the investments you did. Whether any noteworthy company results, news events, or economic events impacted your investments during this period. How your investmen..

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