Find value of the bond immediately after a payment is made

Reference no: EM131948806

Question: The British government has a consol bond outstanding paying £100 per year forever. Assume the current interest rate is 12% per year.

a. What is the value of the bond immediately after a payment is? made?

The value of the bond immediately after a payment is made is ? (round to the nearest pound)

b. What is the value of the bond immediately before a payment is? made?

The value of the bond immediately before a payment is made is ? (round to the nearest pound)

Reference no: EM131948806

Questions Cloud

How much do generic brands affect national brands : How much do generic brands affect national brands? Calculate the equity beta for firm A.

Concept of copying : This week we reviewed the concept of copying, and the ethical issues associated with using content on the Internet.

Recursive method that enumerates and prints : In Java language, how to write a recursive method that enumerates and prints all n-digit even numbers in which each digit of the number

What is the market price per share of the firm equity : A firm has a price-to-earnings (P/E) ratio of 9.00. What is the market price per share of the firm’s equity?

Find value of the bond immediately after a payment is made : The British government has a consol bond outstanding paying £100 per year forever. Assume the current interest rate is 12% per year.

Reduce the burden of documentation for nurses : Do you agree that one nursing admission form for inpatient facilities will reduce the burden of documentation for nurses?

Learning across the curriculum : An Individual production of a Learning Technologies Strategy for a learning environment which includes examples of a range of activities

What is the net income for firm : A firm has EBIT of $842,300.00. Assume that the firm will pay $210,170.00 in interest in the upcoming year. What is the net income for the firm?

Spread between default-free debt and default-risky debt : Explain how the spread between default-free debt and default-risky debt vary over the course of the business cycle.

User Account

All Pages