How much in face value of the coupon bond

Assignment Help Financial Accounting
Reference no: EM132798586

Question - You have an obligation in 1 year with a face value of $151000.00 and a second obligation in 2 years with a face value of $51000.00.

There are two bonds available for purchase:

1) A 1-year zero coupon bond.

2) A 2-year coupon bond with a 7.60% annual coupon.

You engage in a cash-flow matching strategy. How much in face value of the 1-year zero coupon bond do you purchase.

Reference no: EM132798586

Questions Cloud

What amount of foreign exchange gain or loss be recognized : The exchange rate was £1 = $1.54 on April 8 and £1 = 1.43 on May 8. What amount of foreign exchange gain or loss should be recognized
How statistical techniques can solve business problems : Calculate the value of the relevant test statistics and identify the P value and Calculate the proportion of students consume more than 12 instant meals
Should the project be accepted : Miller's is considering a 2-year expansion project that will require $398,000 up front. Should the project be accepted if the discount rate is 12 percent
Determine least cost operations and replacement schedule : Today the business revolves around 20 vans that are on the streets, Determine least cost operations and replacement schedule for Mr. Speedy
How much in face value of the coupon bond : You engage in a cash-flow matching strategy. How much in face value of the 1-year zero coupon bond do you purchase
Compute the Kline total current assets : The December 31 2021 pre closing adjusted trial balance for Kline enterprise was as follows: Compute the Kline's 12/31/2021 total current assets
Analyse governments fiscal and monetary policy : Analyse economic environment nationally and internationally and its influence on business and national economic performance
What defines the bargaining zone in a negotiation : -What defines the bargaining zone in a negotiation? How does a positive or negative bargaining zone affect the outcome of a negotiation?
What is management by objectives process : Explain the characteristics of this important tool. Do you think we are able to apply today this MBO process even though it is a traditional technique.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Journalize each transaction in the space provided

Journalize each transaction in the space provided.Purchased equipment by paying $7,000 cash and executing a note payable for $13,000.

  What is the probability that a visit leads to buying car

25% buy a second-hand car and 30% buy a Japanese car. What is the probability that a visit leads to buying a second-hand Japanese car?

  What purchase orders are

Under encumbrance accounting, What purchase orders are? Which of the following statements about budgets is true? Restricted contributions are subject to

  How to read and understand statement of financial position

Explain to a non-accountant how to read and understand the statement of financial position (balance sheet) and income statement (profit and loss account) you have prepared.

  What will be the recorded cost of the building

What will be the recorded cost of the building under each alternative?- how much is the annual depreciation expense under each alternative?

  Operations section of the statement of cash flows

Amortization of patents can be added to income in the operations section of the statement of cash flows because: it is not a tax deductible expense. it results in an increase in income. it does not require the outlay of cash. patent amortization is n..

  Analyze what principles of internal control were violated

Analyze What principles of internal control were violated in this case? Resources: Financial Accounting: Tools for Business Decision Making.

  How many shares of ten percent preferred stocks

Dadiangas Farmingtown Corporation is authorized by its charter, How many shares of 10% preferred stocks that the corporation is authorized yo issue?

  What amount of interest revenue should be reported

Three periods is 0.75 and the present value of annuity of 1 at 10% for three periods is 2.4869. What amount of interest revenue should be reported for 2021?

  Prepare the necessary journal entries for stone company

Prepare the necessary journal entries for Stone Company

  Compute the price of bonds based on semiannual analysis

Compute the price of bonds based on semiannual analysis. The $1,000 par value bonds have a quotes annual interest rate of 7 percent and the interest

  Make bank reconciliation for stitt company as of september

Prepar adjusting journal entries and calculate the adjusted September 30, 20x1 cash balance per books and bank reconciliation for Stitt Company as of September

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