Suppose you decide to invest in corporate bonds

Assignment Help Financial Management
Reference no: EM13875268

Choose one of the following topics and present your analysis, which may include your personal opinions:

Suppose you decide to invest in corporate bonds. Accordingly, you visit a bond store. You see 3 bonds on the shelf. One is priced at $1,015.53, another is priced to sell at $1,300.00, and a third is selling at a discounted amount of $876.06. All have a $1,000.00 face value, and carry equal risk. From your reading, and from class lecture, you know that you will be earning the same rate on your investment, regardless of which bond(s) you purchase. But you have a friend with you, who doesn't understand how you can possibly earn the same interest rate, due to the difference in purchase price. How will you explain this concept to him or her?

Using the Internet, the City U library, or any other source, research the meaning and history of "par value" as it pertains to common stock. Is this term still relevant to stockholders' equity today, or is it merely an anachronism, an unnecessary carryover from the past, much like an old TV antenna we're too lazy to remove from the roof of our house?

Reference no: EM13875268

Questions Cloud

What is the meaning of value-added services : What is the meaning of value-added services as it pertains to patient care services, and the major reasons why it matters to add value to patient services.
What is meant by the term investment center : What is meant by the term investment center? How is the financial performance of investment centers measured? What are the three financial-performance measures for investment centers?
The efficient frontier indicates : The "efficient frontier" indicates:
What am i suppose to write for 4p''s of marketing for marina : What am i suppose to write for 4p's of marketing for marina bay sand singapore? as i am not suppose to write more than 300 words for total of 4p's?
Suppose you decide to invest in corporate bonds : Suppose you decide to invest in corporate bonds. Accordingly, you visit a bond store. You see 3 bonds on the shelf. One is priced at $1,015.53, another is priced to sell at $1,300.00, and a third is selling at a discounted amount of $876.06. But you ..
Find an interesting article about finance and share : Find an interesting article about finance and share with the class! Possible topics include but are not limited to the equity markets, bond markets, quantitative easing, global trade, emerging markets, and frontier markets. Be sure to share your key ..
Explain the importance of measuring competencies : Include the following: Explain why training and education are vital in health care. Explain the importance of measuring competencies.
What is their expected required return of common equity : Oak Enterprises has a beta of 1.2, the market return is 8%, and the T-bill rate is 4%. What is their expected required return of common equity?
Should adhesive unit purchase t-bar inside or outside firm : From the standpoint of the company as a whole, should the adhesive unit purchase T-Bar inside or outside the firm? Show calculations to support your answer.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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