How much should you have paid for the bond

Assignment Help Finance Basics

Reference no: EM13279111

You have just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 8% annually. Interest will be paid at the end of each year. If you expect to earn a 10% nominal rate of return on this bond, how much should you have paid for the bond?

Reference no: EM13279111

Questions Cloud

What is the value of the option to wait : What is the value of the option to wait? (Do not include the dollar sign ($). Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16))

What will be the change in the inner diameter of the ring : A man's gold wedding ring has an inner diameter of 2.2cm at 30?C. what will be the change in the inner diameter of the ring

What are the advantage and disadvantage of each design : Compare the performance of the basic latch (build with 74LS00 NAND gate), the master-slave flip-flop (7476), and the edge-triggered flip-flop (74LS76). What are the advantage and disadvantage of each design

Study of control theory : Study of control theory is an academic discipline in itself and is known as cybernetics - Explain why feed-forward control

How much should you have paid for the bond : You have just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 8% annually. Interest will be paid at the end of each year. If you expect to earn a 10% nominal rate of return on this bond, how much should you have paid fo..

What potential difference exist between two rectangular face : A large brass washer has a 2-cm inside diameter, a 5-cm outside diameter, and is 0.5 cm thick. Its conductivity is s = 1.5 × 107 S/m. The washer is cut in half along a diameter, and a voltage is applied between the two rectangular faces of one par..

How elasticity or inelasticity of supply determines wages : Immigration is a fact of life in the United States. This will lead to a big boost in the labor supply. What field would you rather be in: A field where the demand for your kind of labor is elastic or a field where the demand for your kind of labor..

What are the components of the momentum of the electron : An electron of mass 9.1 * 10^-31 kg is moving in the xy-plane; its speed is 2.0 * 10^5 m/s, What are the components of the momentum of the electron

What is the annual rate of interest : 1st bank offers you a car loan with a monthly payment of $17.00 per $1,000 borrowed. Payments are made at the end of each month. The term is 5 years. What is the annual rate of interest?

User Account

All Pages