Compute the price of a bond

Assignment Help Finance Basics
Reference no: EM131788342

Question: The Florida Investment Fund buys 90 bonds of the Gator Corporation through a broker. The bonds pay 8 percent annual interest. The yield to maturity (market rate of interest) is 10 percent. The bonds have a 25-year maturity. Using an assumption of semiannual interest payments:

a. Compute the price of a bond (refer to "Semiannual Interest and Bond Prices" for review if necessary).

b. Compute the total value of the 90 bonds.

Reference no: EM131788342

Questions Cloud

Converse on any issue relate to special interests in society : Converse on any issues related to influence or special interests in today's society. For this assignment it will be on the subject of : Google.
Does having a job affect students grades : The instructor was trying to predict the grade on a test from the hours of work. The figure shows a scatterplot and the regression line for these data.
Compute the current yield on both bonds : An investor must choose between two bonds: Bond A pays $92 annual interest and has a market value of $875. It has 10 years to maturity. Bond B pays $82 annual.
Prepare journal entries related to the restricted stock : Allied Paper Products, Inc. offers a restricted stock award plan to its vice presidents. Prepare the appropriate journal entries related to the restricted stock
Compute the price of a bond : The Florida Investment Fund buys 90 bonds of the Gator Corporation through a broker. The bonds pay 8 percent annual interest.
Create the software test document : ITECH7409 - Software Testing - Develop and maintain plans for scheduling quality assurance tasks including software testing-Implementation of project management
Graph the line with technology or by hand : Make a scatterplot of the data, and state the sign of the slope from the scatterplot. Use the number sent as the independent variable.
Determine the total compensation cost pertaining to options : Determine the total compensation cost pertaining to the options. Prepare the appropriate journal entry to record the award of options on January
Function modifies the corresponding array argument : Modifying an array parameter in a function modifies the corresponding array argument.

Reviews

Write a Review

Finance Basics Questions & Answers

  Estimate the beta for southwestern bell

Southwestern Bell, a phone company, is considering expanding its operations into the media business. The beta for the company at the end of 1995 was 0.90.

  What is the value of the option to delay the project

The project's cost and expected annual cash flows would be the same whether the project is delayed or not. The project's WACC is 8.5%. What is the value (in thousands) of the option to delay the project?

  Stocks are generally regarded as being risky investments

Stocks are generally regarded as being risky investments. According to the CAPM, is it possible for a stock to have an expected return that is less than the risk-free rate? Explain.

  What is its wacc

Malitz Inc. recently hired you as a consultant to estimate the company’s WACC. You have obtained the following information. (1) Malitz’s no callable bonds mature in 25 years, have an 8.00% annual coupon, a par value of $1,000, and a market price of $..

  How much money will you have at the end of one year

How much money will you have at the end of one year? If you are saving to buy a stereo that currently sells for $1,050, will you have enough to buy it?

  Read dartmouth-hitchcock medical center spine careread duke

read dartmouth-hitchcock medical center spine careread duke heart failure program 604033-hcb-eng.answer the following

  The last dividend was 120 and dividends are expected to

royal mediterranean cruise lines common stock is selling for 22 per share. the last dividend was 1.20 and dividends

  Capacity planning is complicated by the fact

What is the term for a system in which the product being worked on is physically attached to the line and automatically moved to the next station when the cycle time has elapsed

  What should be the required lease payments

What will be the account balance at age 62 if the savings program starts when the individual is age 50 - how much additional money will be in the account if the saver defers retirement until age 66 and continues the annual contributions until then..

  Compute the tax on the gain from the equipment sale

Compute the tax on the gain from the equipment sale and the cash flow after tax net salvage value.

  What level of deposits are being held

Assume a bank has $5 million in deposits and $1 million in vault cash. If the bank holds $1 million in excess reserves and the required reserves ratio is 8 percent, what level of deposits are being held?

  How the overall cost of a workplace accident is calculated

Analyze how the overall cost of a workplace accident is calculated. Once an accident is calculated, what elements make up the cost?

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