How much will you receive for your bond

Assignment Help Finance Basics
Reference no: EM13288264

Today, you want to sell a $1,000 face value zero coupon bond you currently own. The bond matures in 4.5 years. How much will you receive for your bond if the market yield to maturity is currently 5.33 percent? Ignore any accrued interest.

Reference no: EM13288264

Questions Cloud

Find the shortest wavelength of x-rays : In the typical X-ray lamp. The electrons are accelearated in the potential difference of 10000V before hitting the water cooled electrode. Find the shortest wavelength of X-rays
Find what device properties influence the operating speed : What characteristics of CMOS devices make them a desirable digital logic technology to use in portable electronic devices, such as MP3players What device properties influence the operating speed and utility in portable electronic devices
Define a catalyst decreases the activation energy : A catalyst decreases the activation energy of a given reaction by exactly 15 kJ/mol. By what factor does the reaction rate increase at 25oC when the catalyst is used
Compute the linear momentum of the electron : A hydrogen atom is in its first excited state (n = 2). Using the Bohr theory of the atom, compute the linear momentum of the electron
How much will you receive for your bond : Today, you want to sell a $1,000 face value zero coupon bond you currently own. The bond matures in 4.5 years. How much will you receive for your bond if the market yield to maturity is currently 5.33 percent? Ignore any accrued interest.
Determine what is the simplest recovery mechanism : Although this forms PNP and NPN transistors, the bias of the regions isdesigned so the junctions are reverse biased and the electric fieldeffects on the channel are supposed to control the MOS-FETtransistors operations.
Explain the equilibrium cannot be established : Consider the following equilibrium 2SO2 + O2 yields 2SO3 The equilibrium cannot be established when is/are placed in a 1.0L container
Find the energy of the recoiling electron : X-rays having an energy of 300 keV undergo Compton scattering from a target. The scattered rays are detected at 37.0° relative to the incident rays. find the energy of the recoiling electron
What should the coupon rate be on the new bonds : The company currently has 11 percent bonds on the market that sell for $1,459.51, make semiannual payments, and mature in 18 years. What should the coupon rate be on the new bonds if the firm wants to sell them at par?

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the required amount to pay expenses

You will require to pay for your son's private school tuition [1st grade through 12th grade] a sum of $8,000 per year for Years 1 through 6, $10,000 every year for years 7 through 12.

  What will its payout ratio be

Harris intends to maintain its 55% debt and 45% common equity capital structure, and its net income is expected to be $9,687,000. If Harris maintains its residual dividend policy (with all distributions in the form of dividends).

  Present value of the generated cash flows

Evaluate the present value of the generated cash flows and can you afford the new system

  What be the firm component cost of preferred stock

Firm has preferred stock selling for 95% of par that pays an annual 8% coupon . what be the firm's component cost of preferred stock?

  What are the key elements of business valuations

What are the key elements of business valuations and how would you value Walmart?

  Estimate the present value of tax benefits from depreciation

Your company is considering a new project that will require $912,000 of new equipment at the start of the project. The equipment will have a depreciable life of 10 years and will be depreciated to a book value of $142,000 using straight-line depre..

  Calculate standard deviation of stock

You own a portfolio of two stock X and stock Y with 40 percent of the portfolio invested in Stock X. You have observed over many years that the variance of your portfolio value is 0.0144

  Applying the lower of cost or market rule

Ezekial Distribution Corporation has calculated its December 31, 2007 inventory on a FIFO basis at $250,000. The following data pertains to that inventory:

  Determine how many batches of each type of candy

Determine how many batches of each type of candy the confectionery should make assuming that the profit per pound box is $0.50 on fudge, $0.40 on chocolate crèmes and $0.45 onpralines.

  What about the continously compounded rate of change

what do you think the stock price will range with a 95% probability over the next two months? what about the continously compounded rate of change in the stock price?

  How much has accumulated

Robert has been investing $1000 at the end of each year for the past 15 years. How much has accumulated, assuming he has earned 9% compounded annually on his investment?

  What is the futures price for a futures style option

Suppose that the futures price of a commodity is 500 cents, the strike price of a futures option is 550 cents, the risk-free rate of interest is 3%, the volatility of the futures price is 20%, and the time to maturity of the option is 9 months.

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