User Account

All Pages

Current interest rate increased

Assignment Help Finance Basics
Reference no: EM131050289

Suppose that five years ago Cisco Systems sold a bond issue to 15 years who had a face value of $ 1,000 and a coupon rate of 7%. Interest is paid semiannually. If the current interest rate increased to 10% at what price the bonds were sold today?

a. 813.07
b. 801.25
c. 815.40
d. 805.58

Reference no: EM131050289

Questions Cloud

Forward forward rate for a libor9 deposit : Suppose a company wishes to lock in a 9-month rate to be placed in 3 months. It has been known LIBOR3 is 7.6% and LIBOR12 is 8.25%. What is the forward forward rate for a LIBOR9 deposit to be placed in three months?
Company is expected to have free cash flow : A company is expected to have free cash flow of $20 million next year the average cost of capital is WACC = 10% and the expected constant growth rate is g= 6%. The company has $9 million in maketable securities, $7 million in debt, and $6 million in ..
Develop a probability distribution for this data : A survey of 450 families was conducted to find how many cats were owned by each respondent. The following table summarizes the results.
Audit procedure that involves cost-benefit tradeoffs : An internal auditor must weigh the cost of an audit procedure against the persuasiveness of the evidence to be gathered. Observation is one audit procedure that involves cost-benefit tradeoffs. Which of the following statements regarding observation ..
Current interest rate increased : Suppose that five years ago Cisco Systems sold a bond issue to 15 years who had a face value of $ 1,000 and a coupon rate of 7%. Interest is paid semiannually. If the current interest rate increased to 10% at what price the bonds were sold today?
What will portfolios new beta be after these transactions : You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 1. You are considering selling $100,000 worth of one stock with a beta of 0.8 and using the proceeds to purchase another s..
Critically evaluate the security risk management framework : Critically evaluate the Security Risk Management framework and/or policy in light of other Security Risk Management frameworks
The season participate in a lottery to determine : The NBA teams with the 13 worst records at the end of the season participate in a lottery to determine the order in which they will draft new players for the next season. How many different arrangements exist for the drafting order for these 13 te..
What is the net present value and rate of return of project : International Machinery Company (IMC) is a Swedish multinational manufacturing company. Currently, IMC's financial planners are considering undertaking a 1-year project in the United States. If the interest parity holds, what is the forward exchange ..

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  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.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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