If the current market rate is 12 what would be the current

Assignment Help Finance Basics
Reference no: EM13570146

A corporate bond bearing a 10% coupon rate will mature in 10 years. If the current market rate is 12%, what would be the current value of the bond (assume semiannual interest payments)?

a) $604.50
b) $1,135.50
c) $915.50
d) $885.50

Reference no: EM13570146

Questions Cloud

A 40 year old man no longer qualifies for aditional ira if : a 40 year old man no longer qualifies for aditional ira. if his present ira have a balance of 112860 and if he expects
The abc corporation has cash outflows of 100 per day seven : the abc corporation has cash outflows of 100 per day seven days a week. the interest rate is 5 and the fixed cost of
Abc corp an american company has contracted to buy 50000 : abc corp. an american company has contracted to buy 50000 tons of iron from a german firm. suppose that iron trades for
A portfolio consists of the following four stocks stock : a portfolio consists of the following four stocks stock current market value expected return a 180000 8 b 145000 10 c
If the current market rate is 12 what would be the current : a corporate bond bearing a 10 coupon rate will mature in 10 years. if the current market rate is 12 what would be the
Fill out the persuasive outline with the information : fill out the persuasive outline with the information provided below.introductioni.attention catcherii.listener
Clculate the total contribution margin that the : norton company produces two products juno and hera that use the same material input. juno uses two kilograms of the
A new financial crisis has just hit the stock market and : a manufacturer for stylish clothing for teenagers. the firm has a beta of 1.4 and earned a return on equity of 20 last
Abc inc has a beta of 15 the risk-free rate of return is 45 : abc inc. has a beta of 1.5. the risk-free rate of return is 4.5 and the market risk premium is 6.5.use the security

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the amount that she requires to deposit annually

gina dare who wants to be a millionaire plans to retire at the end of 40 years. ginas plan is to invest her money by

  A non-dividend-paying stock has a current price of 100 per

a non-dividend-paying stock has a current price of 100 per share. you have just sold a six-month european call option

  Given the fair prices at the various yields to maturity can

radiologic technologies has several bond issues on the new york stock exchange. with identical coupon rates of 8.75

  Dividend policy and cap structures

What is an event study designed to test? What role does par value play in the pricing and sale of common stock by the issuing corporation? Why do most firms assign relatively low par values to their shares?

  Calculate ear for first national bank and first united bank

Calculate the EAR for First National Bank and First United Bank.

  Why is it important to understand the ability to evaluate

why is it important to understand the ability to evaluate investments in fixed assets when analyzing an organizations

  Which project should the company invest in

The other alternative is the purchase of a supermarket chain, also costing $100 million. It too, has an expected net present value of $20 million. The firms management is interested in reducing the variability of its earnings.

  What does operating margin tell you about the organization

what does operating margin tell you about the organization and how would you calculate this

  What is the red dirt brewery terminal or horizon value

What percent ownership interest should Roger be willing to give to a venture investor, Syd, for his $500,000 investment?

  An 8-year corporate bind has a yield of 83 which includes a

the real risk-free rate r 2.5. inflation is expected to average 2.8 a year for the next 4 years after which time

  Evaluate the equipment purchase

Dividends are expected to continue growing at a rate of 4.9% per year into the indefinite future. If the firm's tax rate is 30%, what discount rate should you use to evaluate the equipment purchase. Ranch Manufacturing's WACC is.

  What is the price of each bond today

The bond pays a 7 percent coupon, has a YTM of 5 percent, and has 17 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a 5 percent coupon, has a YTM of 7 percent, and also has 17 years to maturity.

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