Calculate the present value of bond

Assignment Help Finance Basics
Reference no: EM132125124

a) You are awarded a 10% pay raise. Inflation for the upcoming year is 3.9%. What is your real pay raise? Answer in percent and round to two decimal places.

b) According to the yield curve, the one-year rate is 4% and the two-year rate is 10%. A two-year coupon bond pays $50 in one year and $1050 in two years. Calculate the present value of this bond. Round to the penny.

Reference no: EM132125124

Questions Cloud

Expected rate of return on the market portfolio : The risk-free rate is 6% and the expected rate of return on the market portfolio is 13%.
Create an infographic using the software of your choice : A summary of a specific child protection agency's vision, mission, guiding principles, or philosophies.
How much must you pay for investment : At a rate of 7.50%, how much must you pay for this investment today (using monthly compounding)?
Describe the nature of the enterprise system : ISY2005 Enterprise Systems Assignment Report, Australian Institute of Higher Education. Describe the nature of the enterprise system that it adopted
Calculate the present value of bond : A two-year coupon bond pays $50 in one year and $1050 in two years. Calculate the present value of this bond. Round to the penny.
How much will she have to save each month to afford her trip : She wants to have $3000 for a trip to Canada when she graduates in 4 years. How much will she have to save each month to afford her trip?
Develop a capitation rate for a primary care : 1. You have been asked to develop a capitation rate for a primary care group based on the following projections:
What are incremental earnings arising : What are incremental earnings arising from the promotional campaign this year?
Appropriate interest rate : You will receive a payment of $10,000 per year forever; however the first payment will not begin for 9 years. If the appropriate interest rate is 7%.

Reviews

Write a Review

Finance Basics Questions & Answers

  Determining the different managerial style

Assume that you interviewed your potential boss and have decided that the job would be a perfect fit to your skills and a fantastic professional development

  Explain the two kinds of government spending

Describe the way the government competes with the private sector.

  What price would the bonds sell

Suppose Ford Motor Company sold an issue of bonds with a 10-year maturity, a $1,000 par value, a 10 percent coupon rate, and semiannual interest payments.  a. Two years after the bonds were issued, the going rate of interest on bonds such as these fe..

  Should the company replace the old machine

Dauten's marginal federal-plus-state tax rate is %40, and its WACC is %15. Should the company replace the old machine?

  Income statement

I need to figure out the statement of retained earnings. I have earnings end of year, 12,979 revenues 25,329, net interest expense, 453 income taxes 853 other income net 137 dividends paid.

  Estimate degree of operating leverage

The Harmon Corporation manufactures skates. The company's income statement for 2004 is as follows:

  What interest rate is the bank required by law to report

What interest rate is the bank required by law to report to potential borrowers? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places.

  Write three needs of sec financial performance reporting

what are the different forms of business organization and briefly discuss each ones advantages and disadvantages?

  A 1000 face value bond of acme inc pays an annual coupon

a 1000 face value bond of acme inc. pays an annual coupon and carries a coupon rate of 5.5. it is was a 30 year bond

  Find the present value of the perpetuity using given data

A perpetuity has a payment of 100 at time t = 1 Each subsequent payment is 5 less than the previous payment until the payments reach on amount of 50.

  Specify the confidence interval

Why do we need to specify the Confidence Interval? What is the interpretation of 95% Confidence Interval?

  Management of these two led to improved cash flow

The CEO of your company recently praised you at a company-wide meeting for improving company cash flow through better management of accounts receivable (A/R).

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