Frequency of the bond interest payments

Assignment Help Financial Management
Reference no: EM131927353

A municipal bond that was issued by the city of chicago 3 years ago has a face value of 25,000 and a bond interest rate of 6% per year payable semiannually if the bond is due 25 years after it was issued

A) What are the amount and frequency of the bond interest payments and

b) What value of n must be used in the p/A formula to find the present worth of the remaining bond intreset payments? asumme the market intrest year is 8% per year compunded semianually.

Reference no: EM131927353

Questions Cloud

Required return must investors be demanding on storico stock : If the stock price is $42.08, what required return must investors be demanding on Storico stock?
Create a statement of the problem experienced : Create a statement of the problem experienced. Provide specific examples to clearly summarize the problem.
What factor do you need to increase sample size : In other words, if you want to decrease your margin of error from 72% to 9% by what factor do you need to increase your sample size?
Develop the required operational capabilities : Compare and contrast the operational challenges Computer Services Limited (CSL) would face in delivering IT solutions as opposed to its traditional business.
Frequency of the bond interest payments : What are the amount and frequency of the bond interest payments and
Statements are complete except for statement of cash flows : The statements are complete except for the statement of cash flows. Prepare the statement of cash flows for the current year ended December 31
Research about the parental involvement driving success : The purpose of this assignment is to lead you in planning and organizing the beginning stages of your literature review for your research proposal.
What does the management expect the sales to be next year : a. What does the management expect the sales to be next year? b. Compute the variance. c. Compute the standard deviation.
Marketing plan for uniting ballarats delacombe retail store : Create a marketing plan for Uniting Ballarat's new Delacombe retail store - Executive Summary - purpose of report is to carry out a market scan

Reviews

Write a Review

Financial Management Questions & Answers

  Interest rate-perpetual stream

Given an interest rate of 7.05 percent per year, what is the value at Year 11 of a perpetual stream of $3,800 payments that begin at Year 18?

  Depreciation tax shield

Fill in the missing numbers for the following income statement. (Input all amounts as positive values. Do not round intermediate calculations.) Sales $ 676,900 Costs 431,800 Depreciation 104,400 EBIT $ Taxes (35%) Net income $ Calculate the OCF. OCF ..

  Determine the net present value of the given project

Determine the net present value of this project. Should Wolverine accept this project? Assume that Wolverine is also considering an alternative financing arrangement.

  Rules in deducting costs associated with donated services

What are the rules in deducting costs associated with donated services? What are the benefit received rules concerning charitable contributions?

  Principal-only mbs and interest-only mbs

(Principal-Only MBS and Interest-Only MBS) Referring to the previous question, what is the average life of the IO MBS? Submission Guideline: Give your answer in years rounded to two decimal places.

  In tax less world with no brokerage coasts

In a tax less world with no brokerage coasts, repurchases and dividends have the same effect on shareholder wealth. In the real world, however, repurchases provide more preferable tax treatment than dividends to ordinary investors. Is it necessary fo..

  What is the npv of the project

What is the NPV of the project and should we accept or reject it?

  What is the dollar duration of the forward contract

The 0.5-year zero coupon rate is 2% and the 1-year zero coupon rate is 3%. What is the dollar duration of the forward contract?

  How the long run real interest rate will change

Draw a diagram of aggregate expenditures showing this initial equilibrium. - Show how the long-run real interest rate will change and explain your results.

  What will be the stock price before the repurchase

Now suppose that instead of paying a dividend, Good Values plans to repurchase $20,000 worth of stock. What will be the stock price before the repurchase?

  Bond valuation-shorter-term bond when interest rates change

Why does the longer-term bond’s price vary more than the price of the shorter-term bond when interest rates change?

  Calculator by entering number of payment periods

Calculate YTC using a financial calculator by entering the number of payment periods until call for N, the price of the bond for PV,

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