Determine the value of these bonds

Reference no: EM13257940

The State of Adaven issued $50 million of perpetual bonds in 1990. The bonds were issued in $1000 denominations with an annual coupon interest rate of 5%. Determine the value of these bonds today to an investor who requires a 10% return on his investment.

A) $25
B) $10
C) $500
D) $50

Reference no: EM13257940

Questions Cloud

What is the current value of a share of chyrox : What is the current value of a share of Chyrox if its current dividend is $1.50 and dividends are expected to grow at an annual rate of 20% for the next 5 years?

Determine synchronous speed and number of stator poles : A 100 hp, 3 phase induction motor, operating at the rated load, runs at 423 rpm when connected across a 450 V, 60Hz supply. The slip at this load is 0.06. Determine A). Synchronous Speed B). Number of stator poles

Compute depreciation expense for the first three years : An estimated salvagevalue of $75,000. Compute the depreciation expense for the firstthree years using the double-declining-balance method.

Find the pressure exerted on the wall : In a period of 1.4 s, 5.0 1023 nitrogen molecules strike a wall of area 8.9 cm2. find the pressure exerted on the wall

Determine the value of these bonds : The State of Adaven issued $50 million of perpetual bonds in 1990. The bonds were issued in $1000 denominations with an annual coupon interest rate of 5%. Determine the value of these bonds today to an investor who requires a 10% return on his inv..

Explain aqueous solutions with h+ ions : Write a balanced net ionic equation for the reaction of each of the following aqueous solutions with H+ ions.

Prepare a classified balance sheet : Prepare a classified balance sheet in good form. common stock authorized was 400,000 shares, and preferred stock authorized was 20,000 shares.

Determine primary voltage is taken from low voltage side : The following data were obtained or a 30-kva, 60 hz, 2400-240V transformer tested at 60hz. Voltage (V), Current(A), Power(W) O.C. Test 240V, 3.0 A, 230 W S.C. Tes..

Dell inc and hewlett-packard company : Dell Inc. and Hewlett-Packard Company (HP) compete with eachother in the personal computer market. Dell's strategyis to assemble computers to customer orders, rather than forinventory.

User Account

All Pages