Compute the price of coupon bond

Assignment Help Financial Management
Reference no: EM132073404

1. Investment will pay $100 at the end of each of the next 3 years 200 at the end of year 4 350 at the end of yearr 5 and 550 at the end of year 6 if other investments of equal risk earn 4% annually what is its present value Round your answer to the nearest cents.

2. “Compute the price of a 3.8 percent coupon bond with 18 years left to maturity and a market interest rate of 7 percent? Please break it down using a formula.

3. An investment will pay $100 at the end of each of the next 3 years $200 at the end of year 4, 350 at the end of year 5 and 550 at the end of year 6 if other investments of equal with arm 4% annually what is the future value.

Reference no: EM132073404

Questions Cloud

What are the expected npv and irr of each project : Compute the expected annual cash flow. What are the expected NPV and IRR of each project
What are its expected growth rate and its price : ABC stock has an expected ROE of 12%, expected EPS of $2, What are its expected growth rate and its price.
Discuss who the project stakeholders : Project communication is one of the most important factors in project management. A project manager will spend most of his/her time on communications.
Evaluate changing theories and practices in business : Evaluate changing theories and practices in business and their potential, positive impact on society.
Compute the price of coupon bond : Compute the price of a 3.8 percent coupon bond with 18 years left to maturity and a market interest rate of 7 percent?
Invest in that company or not : What are some different ways to evaluate a company when considering whether to invest in that company or not?
Write story using all of the business : Write a story using all of the business words below.
Stock returns for the four-year period : The arithmetic average for the past four years is 6 percent. What is the standard deviation of the stock's returns for the four-year period?
What is the emerging power of the informal system : Sandra has been the clinical manager in critical care for 10 years. She has noticed that there has been an increasing level of changes in technology.

Reviews

Write a Review

Financial Management Questions & Answers

  Income statement and cash flow statement

A firm is considering purchasing a new milling machine and has collected the following information for its income statement and cash flow statement.

  Calculate each company cash balance at the end of the year

Calculate each company’s cash balance at the end of the year. Looking at companies A and B, which company would you prefer to own? Why?

  What will be the interest rates on three-year bond

What will be the interest rates on a 3-year bond, 4-year bond, and 6-year bond?

  Currency to hedge the foreign exchange risk

whether you should buy or short a forward contract on the FX currency to hedge the foreign exchange risk?

  How much money did the firm contribute to the fund

How much money did the firm contribute to the fund assuming that only the interest income is distributed?

  Calculate the p and h

Specifically, the stock price is $100, the annually compounded risk free rate is 5%, and the strike price is $100. Use a one-period binomial model with u =4/3 and d = 3/4. Calculate the p and h. Explain.

  Find the present value of perpetuity

How can I find the Present Value of a perpetuity whose payments vary at a non-constant rate?

  Evidence of market risk via relevant newspaper articles

What is market risk and show evidence of these risk via relevant newspaper articles, use a comapny to better able to explain it.

  How does the ds of the bond affect the regular derivation

How do we set up a multi dimensional Black scholes equation for an option depending on two uncorelated asset?

  Started making annual deposits

If you keep doing this every year for the next 8 years, how much money will you have in 8 years?

  Discuss the consequences

Imagine that you have placed a limit order to buy 100 shares of Sallisaw Tool at a price of $ 37.00, Discuss the consequences,

  What is the after tax salvage value of the old mower

Justin’s Landscaping Service purchased an industrial riding mower two years ago for $21,000. At the time, Justin’s accountants told him to depreciate it using straight line over five years. Now Justin has found that a new and improved mower has just ..

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