Compute the coupon rate using given data

Assignment Help Microeconomics
Reference no: EM132160320

Question: You bought a $1000 corporate bond for $900 three years ago. It is paying $30 in interest at the end of every 6 months, and it matures in 4 more years.

(a) Compute its coupon rate.

(b) Compute its current value, assuming the market interest rate for such investments is 5% per year, compounded semiannually.

Reference no: EM132160320

Questions Cloud

Calculate the present worth of a bond : Calculate the present worth of a 4.5%, $5000 bond with interest paid semiannually. The bond matures in 10 years, and the investor wants to make 8% per year.
Explain the approach HR will implement to hire : MCO101 MANAGEMENT SKILLS ASSIGNMENT - The explain the approach HR will implement to hire and improve existing the culture and human capital
Identify the components of the cybersecurity lifecycle : Identify the components of the cybersecurity lifecycle and strategies that small and medium-sized businesses can use to be proactive versus reactive.
How much would he or she be willing to pay for the bond : An investor is considering buying a 20-year corporate bond. The bond has a face value of $1000 and pays 6% interest per year in two semiannual payments.
Compute the coupon rate using given data : You bought a $1000 corporate bond for $900 three years ago. It is paying $30 in interest at the end of every 6 months, and it matures in 4 more years.
Identify a smb of your choice : Examine risk management approaches the organization may consider deploying for mobile device management and provide rationale.
Find what is the bond price in the given issue : A 6% coupon rate bond has a face value of $1000, pays interest semiannually, and will mature in 10 years. If the current market rate is 8% interest compounded.
What is the definition of the spirit of capitalism : What is the definition of The Spirit of Capitalism? What religion is most popular in governments with free capitalism?
Discuss about the core principles of information assurance : Compare and contrast the core principles of information assurance and prioritize in the order each in your own opinion (Support your opinion).

Reviews

Write a Review

Microeconomics Questions & Answers

  Suppose the current level of income is $600 billion,

Suppose the current level of income is $600 billion, "the" multiplier is 4, the marginal tax rate is 20 percent, and the current budget deficit is $20 billion. If government spending is increased to raise income to $630b, once equilibrium is attained..

  Quotas - quantitative problems1 in the us daily supply and

quotas - quantitative problems1. in the u.s. daily supply and demand for a particular good are given by the equationsqs

  Describe the details of the fictitious business

Assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 units o..

  Economically inefficient to efficient allocation of resource

Moving from an economically inefficient to efficient allocation of resources will necessarily increase benefits by more than costs.

  What is the price and how many bunches are bought

If tulips are not taxed, what is the price and how many bunches are bought? If tulips are taxed $6 a bunch, what are the price and quantity bought?

  Can you estimate the three unknowns

If not, what linear functions of these parameters, the estimable func- tions, can you estimate? Show the necessary calculations.

  Solve the quadratic equation

Use the product rule to compute the derivative of e2tcos(3t). Use Euler's formula to expand e(2t + 3it).

  What kind of economic changes in the economy

Why does the AD curve slope downward? What kind of economic changes in the economy would lead the curve to be more steeply sloped?

  Write lolita inverse demand function for cow feed

Write Lolita's inverse demand function for cow feed. If the price of cow is p and her income is m, how much hay does Lolita choose

  What quantity would maximize profits for the firm

What quantity would maximize profits for this firm? What would be the amount of the firm's total revenue at quantity and price identified in prior two question?

  Calculate the marginal cost for each entry of the quantity

Calculate the marginal cost for each entry of the quantity in the above table, and using the marginal cost you computed, find the quantity of output.

  What is the opportunity cost of replacing him

You are a business owner. You hired a manager one year ago. Now you can either keep him or replace him by yourself. If you fire him, you require compensating him with $ 50,000. And your reduced spare time has a valued of $ 30, 000 to you. If you keep..

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