The amount you would be willing to pay for this bond

Assignment Help Financial Management

Reference no: EM132027575

You are thinking of buying a $10,000 bond paying 6% quarterly. the bond will mature in seven years.

If you would like to make 8% return on your investment, what is the amount you would be willing to pay for this bond?

Reference no: EM132027575

Questions Cloud

How much is in savings at the end of this time : A $10,000 deposit is made in a Savings account. For the first 4 years the interest rate is 3% per year. At the end of the fourth year a $5,000 withdrawal.

Which of these two plans would you recommend : Issue $90 million immediately in debt, repay $20 million of its principal in one year, $20 million in two years and maintaining the remaining $50 million.

What is the internal rate of return on the incremental : If you drive 14,000 miles per year and gasoline costs $4.00 per gallon, what is the internal rate of return on the incremental investment in the hybrid automobi

What would be the effect of selling the van on 3rd year : The tax rate is 40% What would be the effect of selling the van on the third year cash flow.

The amount you would be willing to pay for this bond : If you would like to make 8% return on your investment, what is the amount you would be willing to pay for this bond?

How much would you save if you choose the 15-year over : Calculate the total amount of interest paid throughout the life of the loan. How much would you save if you choose the 15-year over the 30-year mortgage?

What is the price of the stock today : Thirsty Cactus Corp. just paid a dividend of $1.55 per share. The dividends are expected to grow at 30 percent for the next 8 years and then level off.

Determine its times-interest-earned ratio : Thomson Trucking has $24 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 17%, and its return on assets (ROA) is 6%.

Calculate out the current ratio and quick ratio : Calculate out the current ratio, quick ratio, Working Capital, Days Sales in Receivables (DSR) and Days Sales in Inventory (DSI) for all 5 years.

User Account

All Pages