The city of davenport issued a new series of bonds on jan 1

Assignment Help Accounting Basics

Reference no: EM13580048

The City of Davenport issued a new series of bonds on Jan 1, 2009. The bonds were sold at par ($1,000), have a 2.8% annual coupon rate and mature in 10 years, on Jan 1, 2019. Coupon interest payments are made semi-annually (on June 30 and December 31).

(A) What was the Semi-Annual Current Yield of this bond on January 1, 2012 assuming that you just paid $788.00 for it?

(B) Assuming that the level of interest rates had risen to 4.0%, what should be the price of the bond on January 1, 2011 (16 coupon payments left)?

(C) On July 1, 2012, you purchased the bond for $1,300 (you purchased it just after the coupon payment was paid for June). What was the semi-annual Yield to Maturity (YTM) at that date (13 coupon payments left)?

Reference no: EM13580048

Questions Cloud

From 8 names on a ballot a committee of will be elected to : from 8 names on a ballot a committee of will be elected to attend a political national convention. how many different

Stock options a essex company has a price of 55share today : stock options a essex company has a price of 55share today and you purchase 2 calls with a 68 strike price for

The sunflower inc makes and sells tasty hamburgers for 8 : the sunflower inc makes and sells tasty hamburgers for 8 per unit with a unit variable cost of 6. all sales are for

Suppose a sample of 40 major league platers was taken find : one year professional sports players salaries averaged 2 million with a standard deviation of 1 million. suppose a

The city of davenport issued a new series of bonds on jan 1 : the city of davenport issued a new series of bonds on jan 1 2009. the bonds were sold at par 1000 have a 2.8 annual

How would your response to part 2 differ explain would your : a state requires large merchants i.e. those with sales over a specified dollar amount to report and remit their sales

Assuming that all direct materials are placed in process : assuming that all direct materials are placed in process at the beginning of production and that the first-in first-out

Department g had 3210 units one-third completed at the : department g had 3210 units one-third completed at the beginning of the period 13877 units were completed during the

Explain whether you would retain or reject the null : suppose that the mean iq of the 85 students in your classes is 110 and you know that the standard deviation of iq

User Account

All Pages