Calculate the semi-annual interest payment

Assignment Help Financial Management
Reference no: EM132031718

Campus is issuing a 30 year bond with a face value of $5,000,000 and a stated annual interest rate of 6 percent. The city will make interest payments twice a year.

A. Calculate the semi-annual interest payment

B. How much ill campus receive from the bond offering if market interest rates remain unchanged at the time of offering.

C. If market interests rates decreases to 5.8 percent at the time of offering, how will bond price be affected?

Reference no: EM132031718

Questions Cloud

Compute your total profit or loss at end of trading period : Calculate the profit or loss for each trading day. Compute your total profit or loss at the end of the trading period.
Systematic risk present in an average risk : Which one of the following measures the amount of systematic risk present in a particular risky asset relative to the systematic risk present in an average risk
Finance infrastructure maintenance and improvements : The village of oak park is selling bonds to finance infrastructure maintenance and improvements.
Black–scholes model to determine value of single warrant : Use the Black–Scholes model to determine the value of a single warrant.
Calculate the semi-annual interest payment : Calculate the semi-annual interest payment. How much ill campus receive from the bond offering if market interest rates remain unchanged at the time of offering
What will be the market price per share after the split : QZinc Furniture has 77,000 shares of stock outstanding with a par value of $0.50 per share. What will be the market price per share after the split?
What must the beta be for other stock in portfolio : You own a portfolio equally invested in a risk-free asset and two stocks. What must the beta be for the other stock in your portfolio?
What must the beta be for the other stock in your portfolio : If one of the stocks has a beta of 1.1 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio?
What must risk-free rate be : A stock has an expected return of 11.3 percent and a beta of 1.55, What must the risk-free rate be?

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate laurie total life insurance requirements

Katie Holt is a 72-year-old widow who has recently been diagnosed with Alzheimer's disease. She has limited financial assets of her own and has been living with her daughter Laurie for 2 years. Her only income is $700 a month in Social Security survi..

  Market risk premium and real risk-free rate

Calculate the required rate of return for Manning Enterprises assuming that investors expect a 3.2% rate of inflation in the future. The real risk-free rate is 1.25%, and the market risk premium is 3.5%. Manning has a beta of 1.7, and its realized ra..

  Difference between savings account and money market account

The primary difference between a savings account and a money market account is:

  What are the promised and expected cash flows

What are the promised and expected cash flows and rates of return for the factory (without a loan), for the loan, and for a hypothetical factory owner who has to repay the loan first?

  Why should the price/earnings ratio ratio

Why should the price/earnings ratio (P/E) ratio be as high as possible?

  What is his after tax lease payment

Tomas rents trucks for his hauling service and pays $17 per hour for a truck. He rents the trucks on an asneeded basis about twice per week.

  Required annual deposit for each interest rate earned

What is the amount of required annual deposit for each interest rate earned?

  An investor has two bonds in his portfolio

An investor has two bonds in his portfolio that both have a face value of $1,000 and pay a 6% annual coupon. Bond L matures in 18 years, while Bond S matures in 1 year. What will the value of the Bond L be if the going interest rate is 4%? What will ..

  What is the difference to an investor retirement account

Many IRA funds argue that investors should invest at the beginning of the year rather than at the end. What is the difference to an investor's retirement account if she invests $2,200 per year at 10 percent over a 30 year period?

  Compute the percentage total return and capital gains yield

Compute the percentage total return. What was the dividend yield? The capital gains yield?

  What are the total variable costs of the project

A firm is reviewing a project with labor cost of $6.20 per unit; raw materials cost of $22.45 a unit, and fixed costs of $11,000 a month. Sales are projected at 8,200 units over the 3-month life of the project. What are the total variable costs of th..

  What is the firms cost of internal common equity

The common stock for the Bestsold Corporation sells for $59. If a new issue is sold, the flotation costs are estimated to be 8 percent. The company pays 70 percent of its earnings in dividends, and a $6.30 dividend was recently paid. What is the firm..

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