How many bonds does it have to sell

Assignment Help Financial Accounting
Reference no: EM132953061

Question - Bond price - Metasale Ltd is issuing 8-year bonds with a coupon rate of 7.99 per cent and semi-annual coupon payments. If the current market rate for similar bonds is 9.53 per cent, what will be the bond price? Assume each bond has a face value of $1000. If the company wants to raise $1.25 million, how many bonds does it have to sell?

Reference no: EM132953061

Questions Cloud

Disadvantages of using coupon rate : What will be the disadvantages of using coupon rate? Are there any approaches to cost of debt other than coupon rate as benchmark? If so, please list the approa
Calculate the net present value of this project : Its cost of capital is 10%. Calculate the net present value of this project to the company and determine whether the project is acceptable
List on the nasdaq : What rules and regulations do companies wishing to list on the Nasdaq need to follow and how might that affect listing decisions? Your answer should focus on ba
Evaluate the risk involved in two investments : Suppose you could make an investment. With Investment 1, there is a 20% chance of making $10, a 15% chance of making $20, a 20% chance of making $25, a 20% chan
How many bonds does it have to sell : Assume each bond has a face value of $1000. If the company wants to raise $1.25 million, how many bonds does it have to sell
What would be the option value : You have been given the following information on Claiborne Industries:
What will be the resulting percentage change in ebit : Assume that current level of sales is 470 units. What will be the resulting percentage change in EBIT if they expect units sold to changes by -0.8 percent
What is the value of the portfolio in one year : After the payoffs have been equalized and the riskless hedged investment is created, what is the value of the portfolio in one year?
Calculate depreciation expense : On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $44,000. Calculate depreciation expense

Reviews

Write a Review

Financial Accounting Questions & Answers

  How fasb feels about timing manipulations for purpose

Consider that you are Conglomerate Corporation's outside auditor performing a quarterly review and you become aware of these practices and the directive of the president, would you require disclosure of these shifting practices in the quarterly fi..

  What gain and net reduction in retained earnings

Peer Corporation owned 10,000 shares of Hunter Corporation. What gain and net reduction in retained earnings, would result from this property dividend?

  What price of the index will the retail investor be

Each futures contract has a multiplier of $50. At what price of the S&P 500 Index will the retail investor be asked to post maintenance margin?

  Draw up a sales invoice for each of the credit sales

On 28 January 2015, to Mills Co. of Maine Road, Liverpool: 29 metres plastic tubing. Draw up a Sales Invoice for each of the credit sales

  Cmu clinic is considering

CMU clinic is considering purchasing

  What is the maximum profit possible on each product

What is the probability of making a loss on (i) Product A? (ii) Product B? (e)  What is the probability of making a profit on (i) Product A? (ii) ProductB?

  Find what is the six-month forward exchange rate

6 months have a nominal rate of 5.5%. In spot exchange market, one yen equals $0.012. If interest rate parity holds, what is the 6-month forward exchange rate

  Find and prepare an income statement for the year

Find and Prepare an income statement for the year. The adjusted trial balance of Ivanhoe Company at December 31, 2017, includes accounts

  Intelligent and informed financial planner

As an intelligent and informed financial planner, you have been asked to evaluate the assumptions and analysis above. What specific flaws do you see (if any)

  How much was the final payment to the bank

On May 1, 2020, Janine Company secured a loan from NorthSouth Bank, P1,250,000, How much was the final payment to the bank?

  Create a pro forma balance sheet and income statement

Prepare a pro forma balance sheet and income statement providing the assumptions made and support the valuations assigned.

  What is the analysis of a companies financial status

What is the analysis of a companies financial status if the WACC has increased twice in lst three years, Debt to equity ratio is also very high in 2020

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