User Account

All Pages

Determining the current value of the bond

Assignment Help Finance Basics
Reference no: EM132632736

1.There is a 20 year couponed-bond with a face value of $1000 dollars with 6.00% interest compounded semiannually. I buy it from a friend that needs some cash 2 years into its maturity (i.e. 18 years left until maturity) for the face value of $1000. What's the current value of the bond, did I make a bad investment?

2.If I have 30-year government bonds with a face value of $20,000 which makes semiannual coupon payments and has a coupon rate of 1.38%. What is the yield to maturity if the bonds are selling for $25,000 and $31,000, respectively?

Reference no: EM132632736

Questions Cloud

Future prospects of deutsche bank : What are the future prospects of Deutsche Bank in your opinion with their operations globally, and also focusing specifically
Primary tasks of a chief financial officer : What is the primary goal of management? What are the primary tasks of a Chief Financial Officer (CFO)
Define bank stability : Define bank stability and explain why bank stability is important.
Should the company accept or reject order for hasf company : Should the company accept / reject the order? The HASF Company has an annual plant capacity of 50,000 units. Predicted data on sales and costs
Determining the current value of the bond : There is a 20 year couponed-bond with a face value of $1000 dollars with 6.00% interest compounded semiannually.
Explain key life events that influenced sara relationship : Explain key life events that have influenced Sara's relationships. Be sure to substantiate what makes them key in your perspective.
Find annuity set of payments : Suppose you were the sole winner of the Power Ball Lottery and the corresponding $150 million jackpot. You may either receive either
Find cost of paper processes versus electronic ones : What do you think about the cost of paper processes versus electronic ones? Is there a return of investment with electronic system?
How much of the janitorial department costs is allocated : Pone Hill Company allocates Janitorial Department, How much of the Janitorial Department's $450,000 costs is allocated to the Cutting Department?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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