Then how much should you be willing to pay for the bond

Reference no: EM13302396

You are considering a 25-year, $1,000 par value bond. Its coupon rate is 10%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 8.59%, then how much should you be willing to pay for the bond? Round your answer to two decimal places.

Reference no: EM13302396

Questions Cloud

Types of endoplasmic reticulum : What concentrations of succrose gradient are used to separate between the two types of endoplasmic reticulum please?

What is the yield to call : Interest rates have declined since it was issued, and it is now selling at 114.12% of par, or $1,141.2

What is the minimum coefficient of road adhesion needed : The owners wish to achieve an initial acceleration from rest of 22 ft/(sec^2) on a level paved surface. What is the minimum coefficient of road adhesion needed to achieve this acceleration

What is the centripedal acceleration of the child : A 40.0 kg child takes a ride on a Ferris wheel that rotates four times each minute and has a diameter of 18.0 m, What is the centripedal acceleration of the child

Then how much should you be willing to pay for the bond : Then how much should you be willing to pay for the bond? Round your answer to two decimal places.

Using npv method and a constant discount rate : Using NPV method and a constant discount rate of 12%, determine if the project is acceptable.

Calculate the present value and future valvue of this fund : To save for college, the Smiths open a fund in which they will deposit $2,000 per year for 18 years. Viewed as a continuous income stream and assuming an APR of 6 percent compounded continuously, calculate the present value and future valvue of th..

Determine what is the drag coefficient at the cars top speed : A 3000-lb car has a maximum speed (at sea level and on a level, paved surface) of 140 mi/h with 16" radius wheels, a gear reduction of 3.5 to 1, and a drivetrain efficiency of 92%. It is know that at the car's top speed the engine is producing 220..

What is the companys total tax liability : 1. Clinton Industries had $120,000 in taxable income in 2007. What is the company's total tax liability for the year?

User Account

All Pages