Calculate the price of the bond

Assignment Help Finance Basics
Reference no: EM133061449

Manning services floats a bond in the market a 6.5% coupon bond with annual payments. The bond stipulates that the yield to maturity is 6.71% and the maturity date is 7 years from today. Calculate the price of the bond if the face value of the bond is $1,000. Comment on the characteristics of this bond.

Reference no: EM133061449

Questions Cloud

Estimate for walsh market value of equity : Walsh Manufacturing recently valued its operations using a standard, discounted cash flow based corporate valuation model. The calculated value of a company's o
What is the profit of the investor strategy : An investor buys 2 shares of stock for $55 per share and simultaneously sells a call option on the stock with a strike price of $60 for a premium of $2 and buys
What is the initial outlay for project : RET Inc. currently has two products, low and high priced stoves. RET Inc. has decided to sell a new line of medium-priced stoves. Sales revenues for the new lin
Calculate the expected return on a stock : Calculate the expected return on a stock with a beta of 1.3 if the risk free rate is 5% and the market risk premium is 8%
Calculate the price of the bond : Calculate the price of the bond if the face value of the bond is $1,000. Comment on the characteristics of this bond.
Calculate the average risk premium : A.) Using the approximate fisher equation, calculate the average real risk premium earned on long-term government bonds.
What the total budgeted inventory purchases in November : The company desires to begin each month with an inventory equal to 75% of the sales projected for the month. What the total budgeted inventory purchases
What is the mv weight of debt : Your company has the following capital structure: 1. 11.0 million shares of common stock priced at $23.82/share
Cultural differences and language barriers : an overview of what the customer loyalty program would look like - benefits of the loyalty program to each respective audience

Reviews

Write a Review

Finance Basics Questions & Answers

  What is up current cost of equity

What is UP's current cost of equity? If the risk free rate is 7 percent and the market risk premium is 5 percent, what is UP's unlevered beta?

  What would be fern component cost of preferred stock

Fern has preferred stock selling for 94.0 percent of par that pays an 9.0 percent annual coupon. What would be Fern's component cost of preferred stock?

  When you complete your team decision activity as a team

when you complete your team decision activity as a team analyzing your teams previous and current decisions and your

  What is the present value of perpetual stream of cash flows

What is the present value of a perpetual stream of cash flows that pays $4, 000 at the end of year one and the annual cash flows grow at a rate of 2% per year.

  How about one of your favorite brands

Pick up a current issue of a popular magazine. Which print ad do you feel is the best, and which ad do you feel is the worst based on the criteria described in this chapter?

  Current shares outstanding for calculation

Why use average shares outstanding rather than current shares outstanding for calculation of market value equity

  Case study of a&g services inc

You work as the assistant to Mark Bates, a CFP with A&G Services, Inc., an Atlanta based medium-sized financial services firm. One of Mark's clients

  Why is the format used for graphical display important

Why is the format used for graphical display important? Is it possible to distort data based on the manner in which it is displayed?

  Determine total rate of return

Today, he received a total of £130 in dividends and sold his shares for a total of £1,211. What was his total rate of return?

  Derive a complete dupont analysis of the firm

Derive a complete DuPont Analysis of the firm

  Restrictions on termination of employment in european

Search your text and at least one article found through ProQuest on the topic of restrictions on termination of employment in European countries.

  What would be the total tax payment and effective tax rate

What would be the total tax payment and effective tax rate if the income was earned by a branch of the US Corporation?

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