User Account

All Pages

Calculate the value of the bond

Assignment Help Business Management
Reference no: EM132342677

New generation public utilities issued a bond with $1,000 par value that pays $30 in annual interest. It matures in 20 years. your required rate of return is 4 percent.

a. Calculate the value of the bond

b. How does the value change if your required rate of return (1) increases to 7 percent or (2) decreases to 2 percent?

Reference no: EM132342677

Questions Cloud

What is the npv for system a : a) What is the NPV for System A? b) What is the NPV for System B? c) Which basketball learning system should Raptors Academy Inc. buy and why?
Why does a high conversion premium would work : Why does a high conversion premium would work for a small company with more volatile stock?
Coupon rate for a convertible : Do you agree that if a firm has a high volatility in its stock return, then the coupon rate for a convertible can be set lower given other parameters unchaned?
Calculate basic and diluted earnings per share : Calculate basic and diluted earnings per share for Owen's Operations Inc. for 2016.
Calculate the value of the bond : a. Calculate the value of the bond b. How does the value change if your required rate of return (1) increases to 7 percent or (2) decreases to 2 percent?
What is the value of the bond : If your required rate of return is 5 percent, what is the value of the bond? How would your answer change if the interest were paid annually?
How much would remain at the end of the nine years : The cost of a new automobile is $10,800. If the interest rate is 8%, how much would you have to set aside now to provide this sum in eight years
Calculate the npv including the initial costs : Calculate the NPV including the initial costs. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Quoted an interest rate : You are quoted an interest rate of 7% on an investment of $1 million. What is the value of your investment after five years if interest is compounded as follows

Reviews

Write a Review

Business Management Questions & Answers

  Results of posting a question to linkedin

For this activity, you will discuss the results of posting a question to your LinkedIn (Links to an external site.)network or other social media platform of your choice. Your question should be related to customer value in the marketing domain an..

  Skills needed for the changing workplace

Give details on the skills needed for the changing workplace and how you can develop these skills?

  Generated through searching grantham library

Use your key terms that you generated through searching Grantham Library's EBSCOhost and/or Google Scholar to find at least five additional, reputable articles to review as background information on community partnerships and community organizatio..

  Recommendations to improve the prioritizing process

Read the case titled: "Prioritizing Projects at D. D. Williamson" found in Chapter 2.

  Explain the concept areas and key questions that can

explain the concept areas and key questions that can provide insight into areas that exemplify that guiding large-scale

  Explain how could julie be more certain

Explain how could Julie be more certain which any actions she takes will more completely address the needs of the consumer group she is targeting?

  Heap sort over the merge sort algorithm

What is the running time of the heap sort algorithm? What is the advantage of the heap sort over the merge sort algorithm?

  Pair of mortgage loan options

Consider the following pair of mortgage loan options for a $115,000 mortgage. Which mortgage loan has the larger total cost

  Approaches to quality management and quality certification

Critically evaluate different approaches to quality management and quality certification, and determine historical trends in their development.

  Coefficients of an elementary step always

If the coefficients in a reaction equation are not necessarily equal to the reaction orders, when in fact the coefficients of an elementary step always equal

  What are the two or three biggest challenges

Conduct an interview with that person either in-person or via the phone using the 6 interview questions below. Please also ask a couple follow-up questions or other questions that interest you as well

  When estimating an econometric model

a. Define "specification bias". Describe why it is considered to be a "fatal" error when estimating an econometric model.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd