User Account

All Pages

Financial calculator time-value-of-money calculations

Assignment Help Finance Basics
Reference no: EM132154611

Using a Financial Calculator's Time-Value-of-Money Calculations (recommended), solve the following

Scenario 1. A $3,000 Bond with a maturity of 9 years has been purchased by Etsuko. It has a Semi-Annually coupon of $71.25 and Etsuko paid $2,791.5 for the bond which is compounded Semi-Annually.

a) What is the yield of the bond?

 =

b)What is the Coupon Rate?

c) Is the bond being sold at a Premium/Discount/PAR?

Scenario 2. Cameron needs a yield of at least 5.5% on any investment he makes to achieve his goals. He asked you to check if this bond he was offered meets that criteria. The bond has a maturity value of $1,000 in 10 years. It pays Semi-Annually coupons at a rate of 7%. It is compounded Semi-Annually. Cameron has been offered the bond at a price of $1,147.63.

a) What is Present Value of the Par Value?

(Do not include PMT)

 =

b) What is the Coupon Payment?

 =

c) Find the PV of the Coupon Payment?

(Do not include PV)

 =

d) hat is the maximum price Cameron will pay for the bond?

(Check your Answers for Question 1 and  Question 3. Do they add to this answer?)

 =

e) Should Cameron buy the bond?

=

Scenario 3. Edmond wants to purchase a $14,250 Bond with a maturity of 11 years that has a Semi-Annually coupon with a rate of  5.75% and a yield of 9.25%. The Bond is compounded Semi-Annually.

a) What is the Coupon Payment Amount?

 =

b) What is the Price Edmond should pay for the Bond?

c) Is the bond being sold at a Premium or A Discount?

>At Par

>Premium

>Discount

d) How much was the Premium or Discount of the Bond?

Reference no: EM132154611

Questions Cloud

Estimate the cost of equity : What two methods are commonly used to estimate the cost of equity?
Reasonable given the risk associated with each portfolio : If I have a Holding Period Return (HPR) in my portfolio of Neg. $19,000.00 and the S&P 500 has a HPR of Neg. $138.00, Does the relationship seem
Calculate the frequency of the recovery voltage transient : The diagram below shows the single phase equivalent circuit of a 275 kV, Calculate the frequency of the recovery voltage transient
How a relation could be stored as a sequential file : Explain why each identified user is most applicable to each scenario and how you came to your conclusions.
Financial calculator time-value-of-money calculations : Using a Financial Calculator's Time-Value-of-Money Calculations (recommended), solve the following
Plot the amount in the account as a function of time : As a saving, the student wishes to allocate RM 100 per month for the entire 4 years studies at UMP.
Advantages and disadvantages of three options : A company is deciding whether to issue corporate bonds, common stocks, or preferred stocks to to raise money to finance sales
What we need is more regulations : Topic: What we need is more regulations (regulation of commercial bank)
What type of company needs the larger : What type of company needs the larger and which the more regional?

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