User Account

All Pages

Discuss about the face value corporate bond

Assignment Help Finance Basics
Reference no: EM131632725

Question: A $1,000 face value corporate bond with a 6.5 percent coupon (paid semiannually) has 15 years left to maturity. It has had a credit rating of BBB and a yield to maturity of 7.2 percent. The firm has recently gotten into some trouble and the rating agency is downgrading the bonds to BB. The new appropriate discount rate will be 8.5 percent. What will be the change in the bond's price in dollars and percentage terms?

Reference no: EM131632725

Questions Cloud

Estimating techniques were discussed : 1. How many different estimating techniques were discussed in the case?
Calculate the tax equivalent rate of return : A municipal bond you are considering as an investment currently pays a 6.75 percent annual rate of return.
What was one problematic piece about the article : What was one problematic piece about this article the way it was written or something about the content
Strategic-operational and tactical objectives : Strategic objectives, also called strategic priorities or grand strategies, are high-level organizational goals that are typically accomplished over a period.
Discuss about the face value corporate bond : A $1,000 face value corporate bond with a 6.5 percent coupon (paid semiannually) has 15 years left to maturity. It has had a credit rating of BBB and a yield.
Identify two cognitive skills used in critical thinking : Identify two (2) cognitive skills used in critical thinking the RN should have applied in this scenario
Describe the role that training plays in the company : Describe the role that training plays in the company. Where is the future of training headed for organizations?
Planning and monitoring and controlling : Planning and Monitoring and Controlling never interact since you are planning within both of those groups.
Which one do you believe makes the most sense and why : Which one do you believe makes the most sense? Why? Would it be feasible for the legal system to subscribe to just one philosophy of punishment?

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