Determine the market price of the bond

Assignment Help Finance Basics
Reference no: EM132589500

A Treasury bond with two yeas until maturity has a par value of $100 and pays semiannual coupons at a rate of 4% per annum. Given the zero rates below, determine the market price of the bond.

  • Maturity .5 1 1.5 2
  • Zero Rate 3 3.5 4.1 4.6

Reference no: EM132589500

Questions Cloud

Analysis that should be conducted to test validity of sales : uncertain about the sales projections. Explain the best type(s) of analysis that should be conducted to test the validity of the sales projections and why
What was the reason for an all-cash transaction : What was the reason for an all-cash transaction, and what are the advantages and disadvantages of this form
Describe some social problems of vulnerable populations : Describe some social problems of vulnerable populations (75-100 words). Explain how social problems of vulnerable populations have perpetuated or are affected.
Determine the time between orders : Determine The time between orders and The number of orders per year and The economic lot size. A particular item has a demand of 9,000 units per year.
Determine the market price of the bond : A Treasury bond with two yeas until maturity has a par value of $100 and pays semiannual coupons at a rate of 4% per annum
Explain the pros and cons of subcontracting logistics : Describe and explain the pros and cons of subcontracting logistics for a building or moving enterprise.
Determine the bond continuously compounded yield : A Treasury bond with a par value of $100 pays semiannual coupons at a rate of 5% per annum, has three years until maturity
Qualitative risk analysis : what would happen if risks were not fully understood before beginning to perform your Qualitative Risk Analysis?
What is the operating cash flow during year five : The pre-tax salvage value of the fixed assets at the end of the project. What is the operating cash flow during year 5 of the project?

Reviews

Write a Review

Finance Basics Questions & Answers

  Find the probability that in a random sample

Use the forecast to find the probability that in a random sample of 88 major bridges in thecity, at least 3 will have an inspection rating of 4 or below in 2020. P(xgreater than or equals≥3)equals=nothing (Round to five decimal places asneeded.)

  How large should wei''s dividend payout ratio

The Wei Corporation expects next year's net income to be $15 million. The firm's debt ratio is currently 40%. Wei has $12 million of profitable investment opportunities, and it wishes to maintain its existing debt ratio. According to the residual dis..

  Carrying a corn gene for red flower color

How would you outline the steps to develop a petunia plant carrying a corn gene for red flower color

  We receive a 200000 mortgage from the gensinger bank for

we receive a 200000 mortgage from the gensinger bank for 100 years. a vp at the bank robert tells us to fully amortize

  Revise a current product or introduce a new one

Since market is competitive, what are some of the factors need to be considered when deciding to revise a current product or introduce a new one?

  Explain what is the price of the bond which pays annual

Explain What is the price of the bond which pays annual interest and Both bonds are non-callable and have a face value of $1,000

  Current issue of consumer reports

Choose a current issue of consumer reports, money, BusinessWeek, or Kiplinger's Personal Finance and summarize an article that updates the costs of health care. How might you use this information to reduce your health care cost?

  What is the beta of your portfolio

You own 400 shares of Stock A at a price of $60 per share, 500 shares of Stock B at $85 per share, and 900 shares of Stock C at $25 per share. The betas for the stocks are 1.2, .9, and 1.6, respectively. What is the beta of your portfolio?

  What is the current state of the illicit economy

What is the current state of the illicit economy? What are some examples of ways that we should consider how we define 'illicit finance'?

  Explain the difference in rankings

Explain the difference in rankings. Which investment would you recommend? Rank these investment proposals using the payback period, the accounting rate of return on initial investment, and the net present value criteria.

  Challenges and problems of financial management

Question 1: What are the Challenges and Problems of Financial management of home health care?

  In this assignment you will compare and evaluate risk

identifying and managing riskin this assignment you will compare and evaluate risk management techniques from experts

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