How would you calculate the spot rate of bond

Assignment Help Financial Management
Reference no: EM13870668

How would you calculate the spot rate of bond?

Example: 3 years to maturity, Face value 100, Price 98, Coupon 1.50

Reference no: EM13870668

Questions Cloud

What is the credit spread on one-year : The above table shows the yields to maturity on a number of one-year, zero-coupon securities. What is the credit spread on a one-year, zero-coupon corporate bond with a B rating?
Bonds is trading at premium : Which of the following bonds is trading at a premium?
What is the market price of this preferred stock today : High Towers has an issue of preferred stock outstanding with a par value of $200. It pays an annual dividend equal to 10 percent of par value. If the required return on High Towers preferred stock is 5 percent, and if the company pays its next divide..
Manages endowments and trusts for large clients : Gordon Powles works for Creighton Capital Management and manages endowments and trusts for large clients. The fund invests most of its portfolio in S&P 500 stocks, keeping some cash to facilitate purchases and withdrawals. A colleague of Powles, Mari..
How would you calculate the spot rate of bond : How would you calculate the spot rate of bond?
What is the implied dividend growth rate for this company : KFC is expected to pay a $10 dividend at the end of the year. If the required return on the stock investment is 20%, and the stock currently sells for $100.00, What is the implied dividend growth rate for this company?
What will happen to the price of the bond : A $5000 bond with a coupon rate of 6.4% paid semi annually has four years to maturity and a yield to maturity of 6.2%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond?
Bond outstanding with face value : The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semi annually.
Growth rate in dividends-what is the current share price : Apocalyptica Corporation is expected to pay the following dividends over the next four years: $ 3, $ 10, $ 15, and $ 3.08. Afterwards, the company pledges to maintain a constant 5 percent growth rate in dividends, forever. If the required return on t..

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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