Find one-time cash flow-ford motor company

Assignment Help Finance Basics
Reference no: EM132799639

Ford Motor Company has an outstanding bond issue in which each bond carries a $1,000 face value (FV = $1,000) and when the bond was originally issued many years ago it was offered with a coupon interest rate of 8.25 percent payable annually (or 0.0825 in decimal form). Although you don't know when the bond was initially issued in the primary market, the broker tells you the bond will mature in exactly 12 years, which will be on 2/12/2033. Based on this information, if you were to buy this bond today how much would you receive each year as the annual coupon or interest payment (C, in dollars)? Finally, if you were to buy this bond today and hold it until its maturity date, what would be the one-time cash flow you would receive from Ford Motor Company on 2/12/2033?

Annual Coupon Payment (C, in $) =

One-Time Cash Flow on 2/12/2033 (in $) =

Reference no: EM132799639

Questions Cloud

How cultural diversity influences community : How Cultural Diversity influences Community and Public Health Nursing? Illustrate an interdisciplinary approach to improvement of the healthcare outcomes.
What is the effective annual interest rate : What is the effective annual interest rate (EFF or EAR) on a 14.99% annual percentage rate on CitiGroup credit card
Discuss the effects of a child chronic illness on siblings : Discuss the effects of a child's chronic illness on siblings. Discuss how the clinical manifestations of Down's Syndrome in the pediatric patient can impact.
What are the influences of value systems in the culture : Choose one specific cultural group in the U.S. or elsewhere for which you have a particular interest. You may wish to consider choosing a cultural group.
Find one-time cash flow-ford motor company : Ford Motor Company has an outstanding bond issue in which each bond carries a $1,000 face value (FV = $1,000) and when the bond was originally issued
MKT501 Strategic Marketing Assignment Problem : MKT501 Strategic Marketing Assignment Help and Solution - Trident University, USA - Homework Help - Module Case Distribution & Marketing Plan
What is the total value of firm : The company has decided to borrow $1 million to buy out the shares of a deceased stockholder who holds 2,500 shares.
What are key search terms identified in practice question : As a practice scholar, the interdisciplinary team you are leading develops the below two practice questions in PICOT format to drive practice change.
What is the current yield on a bond : What is the current yield on a bond which has a 6.25% coupon interest rate (or 0.0625), has a face value (FV) of $1,000, has 22 years until maturity

Reviews

Write a Review

Finance Basics Questions & Answers

  Required rate of return on the market

What is the required rate of return on the market? (Hint: First find the market risk premium.)

  Find the comparable interest rate compounded monthly

Find the comparable interest rate compounded monthly if it is 15% per year compounded quarterly.

  Discount on trade credit agreement

Alternative A: Forgo the discount on its trade credit agreement, wait and pay the full $12,500 in one month.

  Information about market structure

Select one of the market structures (monopoly, oligopoly, monopolistic competition, or perfect competition) and identify a company for that market structure.

  How can esg affect the financial sector in our country

How can ESG affect the financial sector in our country (Philippines)?" It should be complete (Intro, Body, Conclusion). Identify and explain.

  Determine how much you must deposit today

Determine how much you must deposit today, January 1, to be able to withdraw $100 on July 1, August 1, September 1, and October 1. Assume that the interest rate is 24% per year compounded monthly.

  Determine which should be selected using an aw-based rate

Determine which should be selected using an AW-based rate of return analysis. Use a graph of incremental values to determine the largest MARR value that will justify the NPT alternative.

  What is the most recent dollar value of the us national debt

Go to the United States Treasury Web site and find the latest information available on the size of the U.S. national debt. Go to the U.S. Treasury's Treasury.

  Financial and market performance and include aspects

If one was operating a computer company what would be your financial and market performance and include these aspects

  Indicators for using an anova

What are the indicators for using an ANOVA? Create a research scenario in which it would be correct to use an ANOVA, including the research question, sample size, and dependent and independent variables.

  Determining the minimum expected annual return

In order to fund her retirement, Michele requires a portfolio with an expected return of 0.10 per year over the next 30 years.

  What is the interest rate on the loan

This question illustrates what is known as discount interest. Imagine you are discussing a loan with a somewhat unscrupulous lender.

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