Maximum price pay for the bond

Assignment Help Accounting Basics
Reference no: EM13125482

Assume that you wish to purchase a 25-year bond that has a maturity value of $1,000 and makes semiannual interest payments of $45. If you require a 7 percent nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

Reference no: EM13125482

Questions Cloud

Calculate the ph of solution acidic acid : Determine pH of the solution....ICE table..Henderson HasselBach equations, Using a ICE table (initial change equilibrium) a)Calculate the pH of solution that is 0.175M in acidic acid(HC2H3O2) ans 0.110Min potassium Acetate(KC2H302)
Calculate the breakeven point for the company : Under the new method sales would increase by 15 percent each month, and net income would increase by one third. Fixed cost could be slashed to only $15,000 per month. Calculate the breakeven point for the company before and after the change in mar..
Obtain the sample mean that is at least fifty pounds : If the trash ag manufacturer hopes to obtain a sample mean that is at least 50 pounds which sample size n=5 or n=40 would be best.
Concentration of the nitric acid : During this time, titrate 5 mL samples taken from the volumetric flask with 0.1 molar NaOH using methyl red as an indicator to check the initial concentration of the nitric acid.
Maximum price pay for the bond : If you require a 7 percent nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?
Information about linear algebra-wronskian : Compute the Wronskian of the given set of functions, then determine whether the function is linearly dependent or linearly independent: x^2 - x, x^2 + x, x^2, all x
How many milliliters of hno3 would you add : How many milliliters of 6 M HNO3 would you add to 300 mL of the buffers solution to change the pH from 5.09 to 5.03?
Reciprocals and characteristic vectors : If A is nonsingular, show that the characteristic values of A^(-1) are the reciprocals of A, and that A and A^(-1) have the same characteristic vectors.
Compute test value make decision and summarize results : The number of stereos sold on each weekday. State the hypotheses and identify the claim, find the critical value(s), compute the test value, make the decision and summarize the results.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Treasury stock transactions-presentation-jodz company

Jodz Company had the following stockholders' equity as of January 1, 2004. Prepare the journal entries to record the treasury stock transactions in 2004, assuming Jodz uses the cost method.

  Determining firm gross profit

Your firm has the following income statement items; sales of 50,250,000; income tax of 1,744,000.00; operating expenses of 10,115,000; cost of goods sold of 35,025000 and interest expense of 750,000. What is the amount of the firm's gross profit.

  Equivalent units for conversion costs

Fabert Corp uses the weighted-average method in its process costing system. The Assembly Department started the month with 16,000 units in its beginning work in process inventory that were 40% completed with respect to conversion costs.

  What is deductibility loss for federal income tax purposes

A lead partner is a local accounting firm, whose practice consists of tax consulting and compliance, serves clients by providing write-up and payroll processing services. As his firm grows, he has developed various ways to build its business.

  Question on foreign currency

What are the two techniques used to convert trial balances from foreign currencies in U.S. dollars? Explain the situations when you would employ each metod.

  What is suzys basis after the distribution

Suzy has been the sole shareholder of a calendar year S-Corporation since 1979. The S-Corporation has the following balances.

  Financial statement fraud

Is there a difference between financial statement fraud and other types of fraud? How does the definitions differ (if they do)? Should there be a distinction between the two or not?

  Price of bond of gator corporation

The Florida Investment Fund buys 90 bonds of the Gator Corporation through a broker. The bonds pay 8 percent annual interest.

  Prepare the journal entry by indian river electronics

the balance sheet of the Indian River Electronics Corporation as of December 31, 2012, included 12.25% bonds having a face amount of $90 million.

  Profit equation of hockory cabinet and furniture company

The hockory Cabinet and furniture Company makes chairs. The fixed cost per month of making chairs is $7,500, and the variable cot per chair is $40. Price is related to demand according to the following linear equation.

  Accounting-investments

When the present value analysis of a proposed investment results in an indication the proposal has a rate of return greater than the cost of capital, the investment may not be made because:

  Making the bank reconciliation

Prepare the bank reconciliation for Janus Jutes, Inc. dated May 31, 2009. Janus made a deposit on May 31, but this deposit did not appear on the bank statement, $1,451.

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