Explain on how to calculate the bond price

Assignment Help Finance Basics
Reference no: EM132007074

Good day,

Please assist

Zoro company issued 10 year, R10 000 par value, 12% annual coupon bonds, four years ago, the yield to maturity (YTM) on the bond is currently quoted as 15%. At what price would you expect these bonds would be selling in the market? Explain on how to calculate the bond price.

Reference no: EM132007074

Questions Cloud

Three years is a higher value : Therefore, $6,500 at the end of three years is a higher value - Is this correct?
Discuss the benefits of compliance for fitzgerald foods : In the past year, three directors were forced to leave Fitzgerald Foods after it was discovered the directors breached their legal duties to the corporation.
Evaluating a project with the cash flows : A company is evaluating a project with the following cash flows:
Prepare the journal entry to record interest on december : Intermediate Financial Accounting Problem - Prepare the journal entry to record interest on June 30, 2015, using the effective interest method
Explain on how to calculate the bond price : At what price would you expect these bonds would be selling in the market? Explain on how to calculate the bond price.
Conduct a research project concerning performance management : Conduct a research project concerning performance management - how you intend to conduct this investigation
How does area impact the statement of cash flows : Discuss the importance of classifying the activities correctly. How does each area impact the statement of cash flows?
What is the total value of ipo : What is the total value of this IPO if the required return for similar issues is 18%?
Record the purchase of raw materials at standard price : Prepare the journal entry that is needed to record the purchase of raw materials at standard price, and related variance

Reviews

Write a Review

Finance Basics Questions & Answers

  If the quoted rate apr is 675 percent and the compounding

cyclone rentals borrowed 15550 from a bank for three years. if the quoted rate apr is 6.75 percent and the compounding

  Assess the profit potential using marginal analysis

One question that arose during the meeting was about how the company's profitability in their toothpaste division would be impacted by the expansion. The Board asked you to assess profit potential using marginal analysis.

  How much can the firm earn in dollars per year

Beth's Society Clothiers, Inc., has collection centers across the country to speed up collections. The company also makes payments from remote disbursement.

  Number of shares and the new price per share

Determine the current value of your total investment.Do not make any changes to your investment at this time. Calculate your total based on the number of shares and the new price per share, for each company.

  Determining the outstanding stock

Assume the following for aol corp for 2012. cash flow from assets is minus $660; interest expense = $460; dividends paid = $1280 and long term debt is unchanged from 2011. What did aol corp do with regard to its outstanding stock during 2012

  What was the percentage change in the given value

Mexican Peso Changes. In December 1994, the governement of Mexico officially changed the value of the Mexican peso from 3.18 pesos per dollar to 5.49 pesos.

  Analyze each transaction

Below are the external transactions for Shockers Incorporated.

  Using capm approach to find cost of common stock

You are trying to compute the price of a preferred stock you are examining. This preferred stock has an yearly dividend of $5 per share and a par value of $30.

  Federal-plus-state income tax rate

It had $8.50 million of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. What was Rao's operating income, or EBIT, in millions?

  Scaffold equipment manufactures and sells scaffolds

Scaffold Equipment manufactures and sells scaffolds and ladders that are used by construction firms. The products are sold directly to independent retailers in the United States.

  Identify the weighted average cost of capital

For this component of the project, you are asked to develop a capital budgeting model for the Lowe's Expansion Plans Analysis.

  What has happened to the competitiveness

What has happened to the competitiveness of GE's Hungarian operations during 1990 and 1991? Explain.

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