Fnd out the value of a bond when a issued in perpetuity b

Assignment Help Accounting Basics
Reference no: EM13392168

ABC Ltd issued a bond with face value of N$1 000 with a coupon rate of 12% per annum. Coupon is paid annually. The expected rate of return on similar bonds is 10% per annum. Determine the value of a bond when (a) issued in perpetuity, (b) redeemable in six years' time, (c) redeemable in five years' time at a premium of 10%.

Reference no: EM13392168

Questions Cloud

We have now studied the plan contracting process we have : we have now studied the plan contracting process. we have explored the procurement sow and various types of contracts.
Assume youve been recently hired as the financial analyst : assume youve been recently hired as the financial analyst of company d ltd which was recently formed to manufacture the
Describe why aggregate supply curve is vertical in a graph : explain why the aggregate supply curve is vertical in a graph with the price level on the vertical axis and real gdp on
In contrast if demand is inelastic tax increase from 1 to : the government pays attention to elasticity of demand when it selects goods and services on which to levy excise taxes
Fnd out the value of a bond when a issued in perpetuity b : abc ltd issued a bond with face value of n1 000 with a coupon rate of 12 per annum. coupon is paid annually. the
Discover some of the possible survival organizational : the health care industry should anticipate and monitor trends which could possibly influence its overall survival.
Fnd c1 and c2 how would your answer change if u logc1 : in the two-period consumption model suppose that y1 100 and y2 210. there is no initial wealth. if the utility
Examine the impact of technology on how health care : 1 analyze the impact of technology on how health care services are delivered. the impact of technology on employee
Assume a company paid dividend of 15 cents on its ordinary : suppose a company paid dividend of 15 cents on its ordinary share of n1.50 each. the company expected to grow its

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the cost per pound of goody

Pitt Chemical Co. manufactures & sells Goody, a product that sells for $10 per pound. The mfg process also yields 1 pound of a waste product, called Baddy, in the production of every 10 pounds of Goody. Determine the cost per pound of Goody.

  Five elements in coso

What is COSO"s (Committee of Sponsoring Organizations Treadway Commission) definition of Internal Control? What are the five elements in COSO"s Integrated Framework of internal control?

  Determining performance evaluation-residual income

Calculate net operating income and residual income for each division. Compare the two divisions and discuss the usefulness of ROI and residual income for the purpose of comparing the divisions.

  Explain how companies handle uncollectible accounts

Explain how companies handle uncollectible accounts and revenue recognition when the right of return exists.

  Capitalized cost of the ten-ton draw press

Installation costs totaled $12,000, which included $4,000 for taking out a section of a wall and rebuilding it because the press was too large for the doorway. The capitalized cost of the ten-ton draw press is:

  Under gasb rules for the financial reporting

under gasb rules for the financial reporting entitya. component units are included if the primary government is

  Prepare entries if any on each of the three dividend dates

Prepare the entries if any on each of the three dividend dates. How are dividends and dividends payable reported in thefinancial statements prepared at December 31

  Contribution margin in the campus store

The contribution margin in the campus store is $110,000. Direct fixed costs are $90,000 in the downtown store and $93,000 in the campus location. How much are total variable costs?

  Explain why you feel these are risks and support them

Explain why you feel these are risks and support them with facts. You will need to include resources and site them on your responses

  Machine internal rate of return

The machine will have a 12-year useful life and no salvage value. Instructions (a) Calculate the cash payback period. (b) Calculate the machine's internal rate of return. (c) Calculate the machine's net present value using a discount rate of 10%.

  Differences in taxable income and pretax accounting income

Permanent differences in taxable income and pretax accounting income that will not be offset by corresponding differences or "reverse" in future periods are called:

  Benefits of publicly traded company

Describe the benefits accruing to company that is traded in public securities markets. What are the disadvantages to being public?

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