Supply and demand for that particular bond

Assignment Help Financial Management

Reference no: EM131977532

1. What influences this, "Bonds are priced depending on the supply and demand for that particular bond."

2. If a 10 year bond that pays interest annually has a par value of $1,000, coupon rate of 9.125%, rate of return of 8%, and a bond price of $1,080.31. If the PV Coupon is $651.43, what is the PV of the principle?

3. A bond makes two $45 coupon payments each year. Given that the bond’s par value is $1,000 and its price is $1,050, calculate the bond’s coupon rate.

Reference no: EM131977532

Questions Cloud

What annual contributions to retirement fund : What annual contributions to the retirement fund will allow you to receive the $23,000 annuity?

Selected under different interest rate levels : Plot the NPV profile graph and explain to Buridan, which project should be selected under different interest rate levels.

How much should she put in her budget for maintenance costs : Professor Shelley is creating a budget for her recently awarded research grant. How much should she put in her budget for maintenance costs?

Amount borrowed-compensating balance : What is the effective rate of interest? What would the effective rate be if Carey were required to make 12 equal monthly payments to retire the loan?

Supply and demand for that particular bond : What influences this, "Bonds are priced depending on the supply and demand for that particular bond."

Long-term certificate of deposit : You need $24,256 at the end of 8 years, and your only investment outlet is an 9 percent long-term certificate of deposit (compounded annually).

What is the expected value and standard deviation : A pension fund manager is considering three mutual funds. What is the expected value and standard deviation of its rate of return?

Calculate the future value of this ordinary annuity : Calculate the future value of this ordinary annuity. What will be the loan‘s effective annual interest rate (EAR)?

What is current price of the bond : Sam owns a $1000 par value corporate bond with 10 years to maturity and 5% coupon rate. If current interest rate is 10%, what is the current price of the bond?

User Account

All Pages