Find book value immediately after payment

Assignment Help Financial Management

Reference no: EM131905690

1. A 9-year bond with a face value of 1000 dollars is redeemable at par and pays quarterly coupons at 7.1 percent convertible quarterly. If the yield rate is 9.6 percent convertible quarterly, find the book value immediately after the payment of the 7th coupon.

Answer = dollars. (3 decimal place)

2. Suppose that a 10-year bond with a face value of 1000 dollars pays semiannual coupons at a rate of 4.6 percent per half year. The issuer of the bond has the option to redeem it at the time of the 16th coupon for 2100 dollars, or at maturity for 2000 dollars. Find the price that will guarantee an investor a yield rate of at least 12.3 percent convertible semiannually, regardless of when the bond is redeemed.

Answer = dollars (3 decimal place)

Reference no: EM131905690

Questions Cloud

Classification of capital budgeting project : Which of the following would not be a classification of a capital budgeting project?

Which firm is exposed to most exchange rate risk : Based on this information, which firm is exposed to the most exchange rate risk? Explain.

Value of specific latin american currency : If technical forecasting is used, will this result in a forecast of appreciation, depreciation, or no change in the value of a specific Latin American currency?

How much must the company set aside each year for purpose : The company can earn 5 percent on these funds. How much must the company set aside each year for this purpose?

Find book value immediately after payment : Find the book value immediately after the payment of the 7th coupon.

Share of preferred stock pay dividends at predetermined rate : A share of preferred stock pays dividends at a predetermined rate, what is the yield rate?

What is the annual rate earned on the investments portfolio : A company invests $1,000,000 at the beginning of the year. What is the annual rate earned on the investments portfolio?

What is the underwriter spread per share on the issue : What is the underwriter's spread per share on the issue?

Number of miles at which the two alternatives break even : If the discount rate is 6% per year, determine the number of miles at which the two alternatives break even.

User Account

All Pages