Twelve-year bond-what is the market value of bond

Assignment Help Financial Management
Reference no: EM131937822

A twelve-year bond, with par value equals $1,000, pays 8% annually. If similar bonds are currently yielding 6% annually, what is the market value of the bond? Use semi-annual analysis. Use Appendix B and Appendix D. (Round "PV Factors" to 3 decimal places, intermediate calculations and final answer to 2 decimal places.)

Reference no: EM131937822

Questions Cloud

In what ways did the dispute show there were problems : Assignment is based around a contemporary foreign trade policy issue involving a dispute which has been adjudicated at the WTO.
How could elijah and elisha relationship : How could Elijah and Elisha's relationship (from the Bible) be seen as a metaphor for TMS? (Transactive Memory System)
How does the company present itself : How does the company present itself? Are the company's messages congruent from platform to platform? Are they all up to date?
Level of representation defendants : Do you think that indigents who receive court-appointed public defenders get the same level of representation as defendants who can afford private attorneys?
Twelve-year bond-what is the market value of bond : A twelve-year bond, with par value equals $1,000, pays 8% annually. If similar bonds are currently yielding 6% annually, what is the market value of the bond?
Why has diversity in workplace been given so much attention : Diversity in the workplace is clearly the subject of significant attention. Why has diversity in the workplace been given so much attention lately?
Create a more appropriate sentence for rapist : Why do you think that society needs to create a more appropriate sentence for rapist as there are numerous cases
How can governments prevent their occurrence : Can you think of any other ways it might happen? Also, of the methods discussed by the author, how can governments prevent their occurrence?
Identify the one non-ethical issue in the case scenario : Identify and explain the ethical issue in the case scenario using the course material to support the reasoning and conclusions made.

Reviews

Write a Review

Financial Management Questions & Answers

  Should the company lease the equipments

A company is considering to lease an equipment which has purchasing price of 15,00,000.- Should the company lease the equipments.

  Calculate the firm operating cycle

Canadian Products is concerned about managing its operating assets and liabilities efficiently. Calculate the firm's operating cycle.

  Calculate the yield to maturity of the bond

Calculate the yield to maturity of the bond - The price of long-term bonds fluctuates more than the price of short-term bonds for a given change in interest rates (assuming that the coupon rate is the same for both).

  The higher a firms operating leverage

Defense Dynamics is considering a project that will have fixed costs of $12,000,000. Its sale price will be $37.50 per unit, and it will have a variable cost per unit of $11.25. When other things are held constant, the higher a firm's operating lever..

  Rate of return earned on reinvested funds is constant

If the rate of return earned on reinvested funds is a constant 10% and the company reinvests 40% of earnings in the firm, what must be the discount rate?

  What residual value must the lessor recover to break even

what residual value must the lessor recover to break even in a perfect market with norisk?

  Calculate the first four dividends

Burton Corp. is growing quickly. Dividends are expected to grow at a rate of 32 percent for the next three years, with the growth rate falling off to a constant 6.7 percent thereafter. If the required return is 14 percent and the company just paid a ..

  Project evaluation-what level of pretax cost savings

Project Evaluation. At what level of pretax cost savings would you be indifferent between accepting the project and not accepting it?

  The firms weighted average cost of capital

A firm has a debt of $7,000, equity of $12,000, a cost of debt of 7% , a cost of equity 14% , and a tax rate of 30%. What is the firms weighted average cost of capital?

  Differences in the values of the betas of the two companies

discuss the factors that might explain the differences in the values of the betas of the two companies.

  What is the ytm and current yield

Rolling Company bonds have a coupon rate of 7.20 percent, 20 years to maturity, and a current price of $1,246. What is the YTM? The current yield?

  Calculate the pv of the cash flows and then duration

Guess the duration of the following investment. Is it less than two years, two to three years, three to four years, or greater than four years? After your guess, use a discount rate of 6 percent and calculate the PV of the cash flows and then duratio..

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