User Account

All Pages

Determine what would be the present value of the bond

Assignment Help Financial Accounting
Reference no: EM132763008

Given below are information for an existing bond that provides annual coupon payments:

Par value of P1,000;

The coupon rate of 11%;

Maturity of four (4) years; and

The required rate of return by investors is 11%.

Problem a. What is the present value of the bond?

Problem b. If the required rate of return by investors were 14 % instead of 11%, what would be the present value of the bond?

Problem c. If the required rate of return by investors were 9%, what would be the present value of the bond?

Reference no: EM132763008

Questions Cloud

What is the maturity date for this short-term liability : A $40,000, interest-bearing note payable is signed on December 26, 2002. If the note is a 120-day note, what is the maturity date for this short-term liability
What amount does arnold realize on the? sale : What amount does Arnold realize on the? sale? What are the amount and character of Arnold?'s recognized gain or loss on the? sale?
Find and record the conversion for carlos corporation : Find and Record the conversion for Carlos Corporation. Carlos Corporation converts $500,000 of bonds sold at face value into 10,000 shares of common stock
Prepare journal entry to correct the error : Prepare Dody's 2020 journal entry to correct the error and record 2020 depreciation. Assume income was reported accurately for tax purposes in all years.
Determine what would be the present value of the bond : Par value of P1,000; The coupon rate of 11%. If the required rate of return by investors were 14 % instead of 11%, what would be the present value of the bond?
Find what is the present value of the face value of the bond : Find What is the present value of the face value of the bond? Karim Mabait issues a P1,000 corporate bond with an annual interest rate of P5%
What is the monthly payment : A 10-year mortgage for $95,000 is issued at a 6% annual interest rate. What is the monthly payment
What kind of businesses use perpetual inventory systems : Find What kind of businesses use perpetual inventory systems? What is a periodic inventory system? What kind of businesses use periodic inventory systems?
Compute the depreciation expense : ABC Company purchased equipment for $60,000 on January 1, 2018. Compute the depreciation expense for 2019 and the book value at December 31, 2019

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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