If the yield to maturity drops what is the bond price

Assignment Help Financial Accounting
Reference no: EM132917390

Lion ltd has just issues a bond with 5 year maturity and a face value of $1,000. The coupon rate is 6% paid annually. Assume the required yield to maturity is 8%.

Problem a- what is the bond price

Problem b- if the yield to maturity drops to 5%, what is the bond price ?

Reference no: EM132917390

Questions Cloud

Compute the realized gross profit to be reported : Compute the realized gross profit to be reported in 2017 under the installment sales method. On January 1, 2015, UTANGMUNA ENTERPRISES old a real property
What is the price of the bill today of cardinal : Cardinal, The face value of the bill is $100,000. If the current market yield on this bill is 3% per annum, what is the price of the bill today?
Discuss the potential strengths and weaknesses : Discuss the potential strengths and weaknesses of this form of organisation and design - Analyse how culture operates and potentially contributes to the success
The selection and acquisition process of new technology : The selection and acquisition process of new technology. The stakeholders involved in the process and their impact on the purchase.
If the yield to maturity drops what is the bond price : If the yield to maturity drops to 5%, what is the bond price? Lion ltd has just issues a bond with 5 year maturity and a face value of $1,000.
Video case assignment : What should Teresa put in the marketing segment? What types of information will she need?
Maersk cargo shipping encounters : What are the problems/issues that maersk cargo shipping encounters?
Explain five main merits of rant raders over the business : Explain five main merits of rant raders over the business
Which bank offers the better rate : Which bank offers the better rate? After researching various car loans products, you have found that you borrow from either commonwealth bank or west pac.

Reviews

Write a Review

Financial Accounting Questions & Answers

  How much is the carrying value of the investment

On April 1, 2020, UY Corporation purchased 30% of the voting rights in YI Company for P5,000,000. How much is the carrying value of the investment

  What the contribution margin equalled

If sales totalled P175,000 when net income equalled P20,000 and total selling and administrative expense equalled P55,000, then the contribution margin equalled

  Establish type of contract that you will use for contract

Establish type of contract that you will use for each contract (i.e., fixed, cost-plus, reimbursable, unit); Establish the preliminary performance targets / level of service that will be required from the selected vendors.

  A friend of yours works at a large corporation and listens

a friend of yours works at a large corporation and listens to the stock reports regularly. your friend asks you i

  Computing depreciation and book value

Determine the appropriate amounts to complete the following schedule. Show computations andround to the nearest dollar and method would result in the lowest EPS for year 1? For year 2?

  What about signing off due business activity statements

27 February and BAS for the second quarter is due on 28 February. What will be your advice about signing off the due Business Activity Statements?

  Explain as ms almeida the options available

The division would be transferring its product internally to another division that uses the part as input to its product. Explain, as Ms. Almeida, the options available other than market price.

  What the amount of outstanding checks on marigold corp

Marigold Corp. had checks outstanding totaling $26500. What the amount of outstanding checks on Marigold Corp.'s June bank reconciliation should be?

  Equity transactions and statement preparationon 5th january

equity transactions and statement preparationon 5th january 2010 phelps corporation received a charter granting the

  Calculate oriole company effective tax rate

Calculate Oriole Company's effective tax rate. Provide a reconciliation of Oriole Company's effective tax rate with its hypothetical tax rate of 34%.

  Create the required general journal entry

Create the required general journal entry to record the subsequent transactions for the Flaherty Company incurred $95,000 of factory labor costs which is paid in cash.

  What is the length of gateway operating cycle

Assume that an average of 30 days is required for Gateway to collect its accounts receivable. What is the length of Gateway's operating cycle?

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