How much should the investor be willing to pay for this bond

Reference no: EM13285758

An investor has asked us about the purchase price of a bond that has an 8.27% semiannual coupon, while interest rates in the market on similar issues are currently paying 5.30%. The bond issue in question has a par value of $1,000 and 7 years to maturity. How much should the investor be willing to pay for this bond?

Reference no: EM13285758

Questions Cloud

What would be the index value : Three stocks have share prices of $12, $75, and $30 with total market values of $400 million, $350 million and $150 million respectively. If you were to construct a price-weighted index of the three stocks what would be the index value?

What should be on time of chopper to provide motor current : A step down chopper is to be used to supply power from 600 overhead wire to commutator motor on a trolley bus . The motor may be modeled as a generated direct voltage in series with a resistance of .2? and inductance of 25mH.

Evaluate the molar mass of quinine : the freezing point of the solution is lowered by 5.10 °C. The freezing point and Kf constant for cyclohexane can be found here. Calculate the molar mass of quinine.

Estimate the phase difference between the sounds : Estimate the phase difference between the sounds received by your ears when you are facing 90° away from the direction of the source

How much should the investor be willing to pay for this bond : The bond issue in question has a par value of $1,000 and 7 years to maturity. How much should the investor be willing to pay for this bond?

Administrator take into account when hiring a marketing firm : What considerations should an administrator take into account when hiring a marketing firm? How would you choose a company to help you market your practice?

How to calculate the ph of hcl : Calculate the pH of 3.0*10^-8 M HCl and what fraction of the total H+ in this solution is from HCl. Include two digits after decimal point.

What is your lasers wavelength expressed : You perform a double-slit experiment in order to measure the wavelength of the new laser that you received for your birthday. What is your laser's wavelength expressed in nanometers

Aerobic degradation of organic compound by mixed culture : Aerobic degradation of an organic compound by a mixed culture of organisms in waste water can be represented by the following reaction.

User Account

All Pages