User Account

All Pages

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

  How many swiss francs can one u.s. dollar buy

If one Swiss franc can purchase $0.76 U.S. dollars, how many Swiss francs can one U.S. dollar buy?

  Calculate the mirr of the project using the discounting

1 garage inc. has identified the following two mutually exclusive projectsyear cash flow a cash flow b0 29700 297001

  Corporations buy back

Explain why do corporations buy back their own stock? What does it tell you about the corporation? What effect does the purchase have on the price of a company's stock?

  Create a two-period binomial tree and carefully write prices

Create a two-period binomial tree and carefully write prices of underlying asset and option next to each node. Value an American call option on the geometric average of the price of a non-dividend-paying stock when the stock price is $50.00, the s..

  What is the incremental savings of buying the valves

The equipment cannot be used elsewhere in the company, and it has no market value. However, the space occupied by the production of the valve can be used by another production group that is currently leasing space for $55,000 per year.

  What other forms of market risk might remain

If a portfolio of derivatives is delta hedged by adding a position in Eurodollar futures, what other forms of market risk might remain? How can these risks be eliminated?

  Determine the effect of waiting versus immediate planning

Determine the effect of waiting versus immediate planning for retirement.- What is the effect of changing interest-rate assumptions on your retirement "nest egg"?

  What is the payback period for the project

(a) What is the payback period for the project? Show your work (b) What is the net present value of the project ? Show your work

  Applying learned information from career self-assessment

Organizations today have adopted innovative measures to retain key talent and reduce turnover. These measures include dual-career paths and alternative or flexible work arrangements. In addition, some organizations also provide their employees wit..

  Explain function of pension benefit guaranty corporation

Explain the function of National Credit Union Share Insurance Fund, Pension Benefit Guaranty Corporation,  and Securities Investor Protection Corporation.

  What is best estimate of abc cost of equity

If the stock sells for $38 a share, what is your best estimate of ABC's cost of equity?

  What is the present value of this liability

If the relevant discount rate is 8 percent, what is the present value of this liability?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd