Describe why your bond increased in value

Assignment Help Finance Basics
Reference no: EM131486545

Question: In 1994, you purchased a $1,000 corporate bond issued by Boeing. At the time, the interest rate for the bond was 6 percent. Today, comparable bonds are paying 4.30 percent.

a. What is the approximate dollar price for which you could sell your Boeing bond?

b. In your own words, describe why your bond increased in value.

Reference no: EM131486545

Questions Cloud

Federal programs like medicare and medicaid : What is the implication of third-party payers like private health insurance or federal programs like Medicare and Medicaid on demand and supply.
What is the approximate dollar price : Five years ago, you purchased a $1,000 corporate bond issued by General Electric. The interest rate for the bond was 4 percent.
Natural or full-employment rate of unemployment : What does this imply about the economy's natural or full-employment rate of unemployment? Be specific.
Declind of terms of trade : What kind of methods can developing countries use to reverse the declind of their terms of trade? Explain each method breifly.
Describe why your bond increased in value : In 1994, you purchased a $1,000 corporate bond issued by Boeing. At the time, the interest rate for the bond was 6 percent. Today, comparable bonds are paying.
How do you demonstrate your ability to effectively deal : In your opinion, what are the main issues pertaining to conflict and conflict resolution?
Long run deterioration in the commodity terms : Why should we worry about a long run deterioration in the commodity terms of trade of the LDCs and how can such a deteriorationbe related.
Describe some of team leadership : What would you describe as some of the do’s and don’ts of team leadership? What was your and the team’s experience?
How much should the ms grow to keep p constant : Assume money supply rule. Growth in Q is 5%; growth in V is 2%. How much should the MS grow to keep P constant?

Reviews

Write a Review

Finance Basics Questions & Answers

  How is the degree of financial leverage

What is financial leverage? What causes it? How is the degree of financial leverage (DFL) measured?

  What is the maximum potential profit of his strategy

Bob sold short 300 shares of a stock at $55 per share. The initial margin is 60%, which was met exactly. At what (closest) stock price will he receive a margin call if the maintenance margin is 35%?

  How issue is important in increasing ethical behavior

Explain your stance on this issue. Choose one other issue that caught your interest in the article and discuss the issue in your own words. Explain how this issue is important in increasing ethical behavior in the corporate business environment. Your..

  Comprehensive summary of the firm

A comprehensive summary of the firm that you chose to study and your initial assessment you conducted in Phase 1 before you conducted your formal financial analysis

  What is the job worth to you today

You have a sub-contracting job with a local manufacturing firm. your agreement calls for annual payment of 82000 for the next 3 years. at a discount rate of 9.5 percent, what is the job worth to you today?

  Histories of both of amazon and yahoo

Review Case 21 "How Amazon.com became the leading online retailer by 2011", and Case 23 "Is Yahoo!'s business model working in 2011?" located in the textbook to complete this assignment.

  Determine the percentage holding peroid return

Assuming that the bond is held until maturity, the investor will receive $1,000 plus 6 percent interest. determine the percentage holding peroid return on this investment.

  Two sets of cash flows are shown in the table below if

two sets of cash flows are shown in the table below. if thesesets are equal at 8 interest rate determine the unknown

  Determine the present value of the cash flow stream

Calculate the present value of a stream of cash flows based on a discount rate of 8%. Calculate the present value of the cash flow stream in problem 2.

  Charging different groups of customers different prices

Determine the purpose of charging different groups of customers different prices? Provide the three broad examples in the Last Word with two additional examples of your own.

  Discuss the issues of accounting firms

Discuss the advantages and disadvantages of each decision Gerard has made and could make - Discuss the issues of accounting firms going into the financial services market.

  What are projected sales for the last year before the sale

at which time the owners are planning on selling the company. What are the projected sales for the last year before the sale?

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