Missing information on a bond

Assignment Help Finance Basics
Reference no: EM132397633

Missing information on a bond. Your broker faxed to you the following information about two annual bonds that you are considering as a potential investment.? Unfortunately, your fax machine is blurring some of the? items, and all you can read from the fax on the two different bonds is the? following:

Features IBM Coupon Bond AOL Coupon Bond

Face value (Par) 1,000 5,000

Coupon Rate 8.5%

Yield to maturity 7.5% 9.5%

Years to maturity 15 20

Price 4,339.07

Fill in the missing data from the information that the broker sent.

*The IBM coupon bond is = 1,088.27

What is the coupon rate of the AOL coupon bond?

Reference no: EM132397633

Questions Cloud

Calculate the cash flows if the asset : Calculate the cash flows if the asset is sold now at $60,000.
Discuss what the continued growth of internet banking : Discuss what the continued growth of internet banking should do to both economies of scale and scope of banking.
Calculate the profit on combined position : A trader shorts one share of a stock index for $50 and buys a European call option with strike price $60 on that stock index that expires in 2 years for $10.
Total after-tax cash flow for the project : Also, the total after-tax cash flow for the project from year 0 to year 5.
Missing information on a bond : Your broker faxed to you the following information about two annual bonds that you are considering as a potential investment.?
Average age of receivables remains at 50 days : Westley Company currently has an average age of accounts receivable is 50 days, the average age of accounts payable is 41 days, and the average age
Find the present value of these cash flows : How much money have you accumulated for your retirement? Your account pays you 6.11 percent per year, compounded annually.
What is the rent that the owner should charge : What is the rent that the Owner should charge per square foot? If Tenant Z rents 1200 sf of usable area, what will be his monthly rent?
What is the coupon rate of a eight-year : What is the coupon rate of a eight-year, $5,000 bond with semiannual coupons and a price of $4,379.52 if it has a yield to maturity of 8%?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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