Market return on similar bonds

Assignment Help Financial Management

Reference no: EM131048582

A bond is available for purchase that has a face value of $10,000, an 8% coupon, payable semiannually, and 20 years of its original 25 years left to maturity. Approximately how much would you pay for the bond if the market return on similar bonds is 10%?

a. $8,184.60 b. $8,296.88 c. $8,283.64 d. $8,174.36 Show calculation.

Reference no: EM131048582

Questions Cloud

What is the first-year breakeven share of the served market : Chemists at Great Kiwi Industries have developed a new breakfast drink. The drink, called Kiwig, will provide the consumer with twice the amount of vitamin C as currently available in breakfast drinks. Kiwig will be packaged in an 8-oz. What is the c..

Describe the organization current job design approach : (1.a). Describe the organization's current job design approach and (b). Assess its effectiveness. (2.a). Propose techniques to improve the process as you see fit and (b). Justify how an improved job design process will be accomplished.

The companys capital gains yield and dividend yield : Conner Health Inc. has a stock price of $32.35 per share. The last dividend (D0) was $3.42. The long-run growth rate for the company is a constant 7 percent. What is the company's capital gains yield and dividend yield?

Describe the characteristics of multinational corporation : 1. Define globalization and explain how it is creating a borderless world for today's managers. 2. Describe a global mindset and why it has become imperative for companies operating internationally. 3. Describe the characteristics of a multinational ..

Market return on similar bonds : A bond is available for purchase that has a face value of $10,000, an 8% coupon, payable semiannually, and 20 years of its original 25 years left to maturity. Approximately how much would you pay for the bond if the market return on similar bonds is ..

Case study company internal environment : Prepare a case study analysis on Case 29: "Whole Foods Market 2010: How to Grow in an Increasingly Competitive Market" found in the Cases section of your digital textbook. Closely adhere to the Case Study Analysis Template by clicking on the hyper..

Describe the competitive positioning you face : Describe the competitive positioning you face and are going to take, the tradeoffs you face with differentiation, the cost, and any pricing options you might offer. Be creative! You need the money.

Earning before interest-taxes-depreciation and amortization : One year ago, your company purchased a machine used in manufacturing for $110,000. You have learned that a new machine is available that offers many advantages; you can purchase it for $150,000 today. It will be depreciated on a straight-line basis o..

What is the problem or potential problem in the case study : Before you commence writing ask yourself the following questions: What is the problem or potential problem in the Case Study? Now go and do your research, the nextthree questions will be answered whilst conducting your research

User Account

All Pages