Computation the price of the bonds

Assignment Help Finance Basics
Reference no: EM1314420

Computation the price of the bonds

Calculate the price of the following bonds, where F is the face value, c is the coupon rate, N is the number of years to maturity, and i is the interest rate (or discount rate, or yield)-

a. F = $100, c = 10%, N = 2, i = 8%
b. F = $10,000, c = 6%, N = 3, i = 9%
c. F = $1,000, c = 0%, N = 10, i = 6%
d. F = $10,000, c = 7%, N → ∞ (bond never matures), i = 6%

Reference no: EM1314420

Questions Cloud

Explain valuation of perpetual bond : Explain Valuation of perpetual Bond and In what respect is a perpetual bond similar to a non-growth common stock
Disposable income and consumption : If the MPC = 0.94, C 0 = 45, I = 150, G = 125, T = 75,    X = 50 & IM = 60: Write out the consumption function. Compute the simple multiplier.
Objective type of questions on bonds : Objective type of questions on bonds and calculate the duration on a bond with all of the same attributes as the bond in part
Rate of inflation using money supply and real gdp : If velocity is unchanged and the money supply grows by 13% and the real GDP grows by 4%, what is the rate of inflation?
Computation the price of the bonds : Computation the price of the bonds N is the number of years to maturity and i is the interest rate
Nominal gdp and real gdp : What is the difference between the real interest rate and the nominal interest rate? How would not knowing the difference effect perceptions of the economy and affect people's decisions?
Goodness of fit test for poisson distribution : In order to test the assumption of a Poisson distribution, a random sample of 150 ten-minute intervals was taken.
True or false questions : True or false questions.
Computation of ytm and analysis of bond returns : Computation of YTM and analysis of bond returns and Explain why your bond is trading at a premium or discount based on current market conditions

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain capital budgeting providing decision

Explain Capital budgeting providing decision based on net present value

  Describe capital budgeting decision

Describe Capital budgeting decision based on net present value and Should the new machine be purchased

  What is stock valuation under equilibrium situation

What is Stock valuation under equilibrium situation and Assuming the stock market is efficient and the stocks are in equilibrium

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Computation of earnings per share at the given net income

Computation of Earnings per share at the given net income in addtion to this calculate the return on investment using the Du Pont method

  Calculation of npv of lease payments

Calculation of NPV of lease payments and capital contribution decision to the lease project proposed and Why did you select the cash flow level and the discount rate that you used

  Calculate the present value for the data furnished

Calculate the present value for the data furnished and a security that will begin making payments when you retire in 20 of $20,000

  Determine the present value of the offers

Determine the present value of each of the three offers and then show which one has the highest present value.

  Carrying out cost benefit analysis on project

Carry out a cost benefit analysis on this proposed project over a four year period giving a recommendation and numerical explanation for your recommendation.

  Decision making on investment portfolio

Decision making on investment portfolio and Assume that the investment portfolio continues to yield

  Computation of exchange rates

Computation of exchange rates and How many euros can you get for $2,500 given the following exchange rates

  Calculation of rate of return using pure expectations theory

Calculation of Rate of Return using Pure Expectations Theory and calculation of real risk-free rate of return

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