User Account

All Pages

Competitive value at the time of sale

Assignment Help Finance Basics
Reference no: EM132577105

Rob buys a 30-year coupon bond with a $250,000 face value at a time when the interest (coupon) rate is 5%. In just under 5 years (so just before the 3rd coupon payment) he sells the bond to a neighbor. At that time the interest rate is 3%. How much is the bond's approximate (within $1000) competitive value at the time of sale?

Reference no: EM132577105

Questions Cloud

What is the current price of the share : Pay its first dividend of $2.45 a year from now. If your required rate of return on such shares is 22 per cent, what is the current price of the share?
Department of children and families in texas : You are a social worker for the Department of Children and Families in Texas, and you have been asked to present information about a public assistance program
Value of x that makes the two cash flows equivalent : Consider the following two cash flows: CF1: 100 at t=0, 200 at t=2, and 300 at t=3 CF2: X at t=1, X at t=2, and 2X at t=4
How do quote the currency rate : If you are a bank and a Malaysian importer asks for an exchange rate to pay his purchase from Australia. How do you quote the currency rate?
Competitive value at the time of sale : At that time the interest rate is 3%. How much is the bond's approximate (within $1000) competitive value at the time of sale?
Is family an outdated institution, out of place in society : Write an essay "Is the family an outdated institution, out of place in modern society perpetuating inequality and irrational ideas
What is estimate of the stock current price : A company currently pays a dividend of $2 per share (D0 = $2). It is estimated that the company's dividend will grow at a rate
Which items are significant and direct concerns : Identify which two (2) items are significant and direct concerns for both the external auditor and the head of internal audit. Justify your answer.
How large must bonzelle inc equal annual : Bonzelle Inc. wishes to accumulate funds to provide a retirement annuity for its Chief of Operation, Jacky Chin. Mr. Chin

Reviews

Write a Review

Finance Basics Questions & Answers

  Mortgage pass-through security and a cmo

What is the difference between a mortgage pass-through security and a CMO?

  Why the airport foreign exchange desk will sell pesos

Foreign Exchange You just came back from Canada, where the Canadian dollar was worth $.70. You still have C$200 from your trip and could exchange.

  The current spot rate is a flat yen8900 while a 360 day

dereck tosh is attempting to determine whether us japanese financial conditions are at parity.the current spot rate is

  Shadow corp has no debt but can borrow at 65 the firms wacc

shadow corp. has no debt but can borrow at 6.5. the firms wacc is currently 10.4 and the tax rate is 35a what is

  Explain difference between selling stocks and bonds

Briefly summarize the difference between selling stocks and bonds to raise money as a company. Analyze if all companies have the ability to sell stocks.

  Measuring the performance and success of project

The project baseline is established for allowing project managers and their team to be capable of measuring the performance and the success of the project against the planned baseline.

  Disadvantages to using a traditional ira

Discuss the advantages and disadvantages to using a traditional IRA, including when it may be advantageous to use a nondeductible IRA.

  How much must you deposit today in an account

If you wish to accumulate $932,000 in 28 years, how much must you deposit today in an account that pays an annual interest rate of 9%?

  Criteria for living organism

How a clam, a generic virus and a lichen meet each criteria for living organism?

  What is the operating cash flow for the project in year 2

The tax rate is 34 percent and the required return on the project is 12 percent. What is the operating cash flow for the project in year 2?

  Define working capital and the revenue cycle

Q.1. Define working capital and the revenue cycle. And also explain working capital and revenue cycle management strategies.

  What was the flotation cost as a percentage of funds raised

What was the flotation cost as a percentage of funds raised?

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