User Account

All Pages

Current market price of the bonds-bright sun inc

Assignment Help Finance Basics
Reference no: EM132657590

Bright Sun, Inc. sold an issue of 30-year $1,000 par value bonds to the public. The bonds had a 12.96 percent coupon rate and paid interest annually. It is now 19 years later. The current market rate of interest on the Bright Sun bonds is 8.25 percent. What is the current market price (intrinsic value) of the bonds?

Round the answer to two decimal places.

Reference no: EM132657590

Questions Cloud

Determine which perspective of the balanced scorecard : The number of new products developed may be an example of measuring which perspective of the balanced scorecard? Learning and growth
Should there be probation period before rights are restored : In many states, a convicted felon cannot vote, serve on a jury, or hold public office until civil rights have been restored. Some states expand that to include
What is? william initial equity in investment : William purchased 1000 shares of stock at a price of? $32 a share. He utilized his? 50% margin account to make the purchase.
How much of each class of income is deemed to have : Brenda and Dev, receive cash distributions of $20,000 each. How much of each class of income is deemed to have been distributed to Brenda? To Dev
Current market price of the bonds-bright sun inc : It is now 19 years later. The current market rate of interest on the Bright Sun bonds is 8.25 percent. What is the current market price (intrinsic value) of the
Record the elimination of the intercompany holdings of posey : Record the elimination of the intercompany holdings of Posey's bonds. Record the entry to eliminate the intercompany interest receivables/payables.
Determine why funding is needed for the company : A financial plan is needed for a small women's boutique company business plan.
What physical evidence would be retrieved from crime scene : After 10 years of being free, a man was convicted of a rape after DNA evidence was allowed to be used. The female he raped was not able to make.
What is the current price of the bond-blue lake corp : The current interest rate on this type of bond is 6.56 percent, compounded annually. What is the current price of the bond? Round the answer to two decimal plac

Reviews

Write a Review

Finance Basics Questions & Answers

  Homegrown entrepreneurs equipped with advanced managerial

Therefore although China has undergone tremendous economic growth in the past decade, China is still sorely lacking homegrown entrepreneurs equipped

  Relationship between incremental cash flow and new projects

What is the relationship between incremental cash flow and new projects and what are the issues that affect incremental cash flow.

  Determine two to three methods of using stocks

Determine two to three methods of using stocks and options to create a risk-free hedge portfolio. Support your answer with examples of these methods being used to create a risk-free hedge portfolio.

  Calculation of cost of common equity for wacc decisions

Calculation of Cost of common Equity for WACC decisions and what is the estimated cost of common equity using the DCF approach

  Ethical health care organization and its employees

Organizational values statements set the tone for the ethical health care organization and its employees.

  Determine the marginal cost to extend service

A drill press was purchased 2 years ago for $30,000. The press can be sold for $15,000 today, or for $12,000, $10,000, $8,000, $6,000, $4,000, or $2,000.

  Every act of creation is first of all an act of destruction

According to Pablo Picasso, "Every act of creation is first of all an act of destruction."

  Explain in needed details along with relevant and applicable

Explain in needed details along with relevant and applicable examples how Behavioral Finance class helped you to further and expand your knowledge about the whole valuation concept; including different valuation models and methods?

  Excessive optimism or overconfidence

Excessive optimism or overconfidence is one of the most commonly observed characteristics in human beings.

  Stock and estimate the the company wacc

What is the required rate of return for ABC Corps' stock and estimate the the company's WACC.

  Increase and decrease by same percentage

Why even though interest rates increase and decrease by same percentage it will still result in the increase and decrease in profits amount to be difference?

  Unbiased expectations theory is correct

If the unbiased expectations theory is correct, what should the current rate be on 3-year Treasury securities?

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