Market required yield to maturity on comparable-risk bond

Assignment Help Financial Management
Reference no: EM131891604

A bond of Visador Corporation pays $70 in annual? interest, with a $1,000 par value. The bonds mature in 17 years. The? market's required yield to maturity on a? comparable-risk bond is 8.5 percent.

a. Calculate the value of the bond.

b. How does the value change if the? market's required yield to maturity on a? comparable-risk bond? (i) increases to 13 percent or? (ii) decreases to 6 percent?

c. Interpret your finding in parts a and b.

Reference no: EM131891604

Questions Cloud

Explain Kanban system with a supermarket concept : Taichi Ohno, a former Toyota vice president, promoted the idea of JIT and developed Kanban to improve manufacturing efficiency.
Calculate the taxes owed by the company : Calculate the taxes owed by the Company in each state for the 2013 tax year and the total taxes owed by the Company for the year.
What would after-tax cash flow be from equipment sale : What would the after-tax cash flow be from the equipment sale if the equipment is sold in 9 years for 110,000 dollars and the tax rate is 10 percent?
Discuss the exponential smoothing method : Now, forecast the demand for Weeks 2 through 6 using the exponential smoothing method with a = 0.8. How does it compare to that in part (c)?
Market required yield to maturity on comparable-risk bond : How does the value change if the? market's required yield to maturity on a? comparable-risk bond? (i) increases to 13 percent or? (ii) decreases to 6 percent?
House for the full term and ignore taxes in your analysis : Assume the homeowner will remain in the house for the full term and ignore taxes in your analysis.
Charles probate estate related to revocable living trust : How much is included in Charles’ probate estate related to the revocable living trust? Why?
Compute the efficiency and percent idle time for the system : Use a takt time of 120 seconds and follow the "most following tasks" heuristic rule to assign these tasks to the work stations.
The yield to maturity on comparable-risk bond : Determine the yield to maturity. What is the value of the bonds to you given the yield to maturity on a? comparable-risk bond?

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