Price determined from the first? yield

Assignment Help Business Economics
Reference no: EM131857970

1) A zero coupon bond has a face value of $1000 and matures in 5. Investors require? a(n) 7.4% annual return on these bonds. What should be the selling price of the? bond?

2) A Ford Motor Co. coupon bond has a coupon rate of 7?%, and pays annual coupons. The next coupon is due tomorrow and the bond matures 26 years from tomorrow. The yield on the bond issue is 6.2?%. At what price should this bond trade? today, assuming a face value of 1,000??

3) What is the percentage change in price for a zero coupon bond if the yield changes from 6.5?% to 5.5?%? The bond has a face value of ?$1,000 and it matures in 10 years. Use the price determined from the first? yield, 6.5?%, as the base in the percentage calculation.

Reference no: EM131857970

Questions Cloud

How can shape behavior of offspring on a biochemical level : In this week's required resources, we have learned that while our genes have a lot to say about who we are, environmental factors, particularly parental.
Explain how jesus moral philosophy is rooted in love : Explain how Jesus' moral philosophy is rooted in love for God and love for others
Establish a long or short futures position : How do traders establish a 'long' or 'short' futures position? Explain how these positions can be subsequently 'closed-out'.
What else would you like to learn related to topics covered : What else would you like to learn related to the topics covered in this unit? Do you have any questions or concerns about anything related to the course?
Price determined from the first? yield : Use the price determined from the first? yield, 6.5?%, as the base in the percentage calculation.
How can individuals better cope with stress : To what extent is our response to stress affected by genetics? How can individuals better cope with stress
Write down the response guidelines on the given reponse : Your responses to other learners are expected to be substantive in nature and to reference the assigned readings, as well as other theoretical, empirical.
Calculate the bond yield to maturity : The face value of the bond is $1,500, and the bond is currently trading at $1,232.56. Calculate the bond's yield to maturity.
Describe an example of at least one cognitive bias : We all have developed our own theories about human behavior, Describe an example of at least one cognitive bias

Reviews

Write a Review

Business Economics Questions & Answers

  Entry strategy-technology based-quality based or cost based

Success of a company investing and operating in a foreign country depends on the competitive advantage of the company. The entry strategy could be technology based, quality based, or cost based. Explain and comment.

  Determine an individuals wage

Which of the following determine an individual's wage?  If the price of output in an industry falls, firms in that industry will ______ labor.

  What is the return on stockholders equity

Calculating and Using Ratios 1. If we divide users of ratios into short-term lenders, long-term lenders, and stockholders, which ratios would each group be most interested in, and for what reasons? What is the return on assets? What is the return on ..

  Make the assumption that economy has no external effects

Make the assumption that an economy has no external effects and all actors are perfectly informed. In addition, one good is produced by a firm who is a non-discriminating monopolist (known as Frontier Firm).

  Compensation is the reason for increased profits

Recently, the owner of a Trader Joe’s franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $75,000 and her store made $130,000 in profits. Assuming the change in compensation is the reason for the..

  Layers of the osi model

Explain how information flows through the layers of the OSI model?

  Assuming that the velocity of money is constant

Assuming that the velocity of money is constant, if a country has an average annual growth rate of real GDP equal to 3%, then what is the average annual rate of money growth that would required to produce an average rate of inflation of 4%.

  Solve for equilibrium output in the domestic economy

Consider an open economy in which the real exchange rate is fixed and equal to one. Consumption, Investmentnt, and Government spending are given by: Solve for equilibrium output in the domestic economy

  Suppose the welfare benefit formula

Suppose the welfare benefit formula is, How large is the benefit if wages equal. What is the breakeven level of income in this case?

  Supply of goods and resources in the affected country

How might such unrest impact the individual demand and supply of goods and resources in the affected country?

  What impact would a rise in consumer income have on demand

What impact would a rise in consumer income have on the demand for cars?

  Name the top three largest trading partners

Name the top three largest trading partners with the United States. Which countries (if any) do we have a trading deficit? Or any of them (roughly) trade balanced?

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