Government bond issued-calculate the price of the bond

Assignment Help Financial Management

Reference no: EM131065124

A government bond issued in Germany has a coupon rate of 5%, a face value of 100 euros, and matures in five years. The bond pays annual interest payments. Calculate the price of the bond (in euros) if the yield to maturity is 3.5%. A. 100.00 B. 106.77 C. 106.33 D. 105.00

Reference no: EM131065124

Questions Cloud

Compute the yield to maturity : Bonds issued by the Coleman Manufacturing Company have a par value of $1,000, which of course is also the amount of principal to be paid at maturity. The bonds are currently selling for $590. They have 10 years remaining to maturity. The annual inter..

Operating income and net income and earnings per share : Prepare an income statement in good form using the information given below. Make sure to identify gross profit, operating income, and net income and earnings per share.

Determine the bending moment m in the pinned-end column : Determine the bending moment M in the pinned-end column with eccentric axial loads shown in the figure. Then plot the bending-moment diagram for an axial load P= 0.3Pcr.

Calculate the yield to maturity of the bond : A government bond issued in Germany has a coupon rate of 5%, a face value of 100.00 euros, and matures in five years. The bond pays annual interest payments. Calculate the yield to maturity of the bond (in euros) if the price of the bond is 106.00 eu..

Government bond issued-calculate the price of the bond : A government bond issued in Germany has a coupon rate of 5%, a face value of 100 euros, and matures in five years. The bond pays annual interest payments. Calculate the price of the bond (in euros) if the yield to maturity is 3.5%. A. 100.00 B. 106.7..

Consider a graph of the security market line : Consider a graph of the security market line. Assume the vertical intercept is 3%, beta is 1.2 and the expected return on the market is 10%. What is the risk free rate of return? Express your number as a percentage.

What is the dollar cost of the loan : Talmud Book Company borrows $18,600 for 60 days at 18 percent interest. What is the dollar cost of the loan?

What is the effective interest rate on the LIBOR loan : Dr. Ruth is going to borrow $9,800 to help write a book. The loan is for one year and the money can either be borrowed at the prime rate or the LIBOR rate. Assume the prime rate is 9 percent and LIBOR 2.5 percent less. What is the effective interest ..

Which is the constant growth rate for the firm : Maxwell Communications paid a dividend of $2.00 last year. Over the next 12 months, the dividend is expected to grow at 10 percent, which is the constant growth rate for the firm (g). The new dividend after 12 months will represent D1. The required r..

User Account

All Pages