Use annual compounding to calculate current price of bond

Reference no: EM1356358

Nissan Corporation has a $1,000 par value bond outstanding paying annual interest of 7%. The bond matures in 20 years. The going rate of interest is 9% for this bond. Calculate the current price of the bond using annual compounding.

a. $850.00

b. $900.00

c. $817.40

d. $820.00

e. $825.00

Reference no: EM1356358

Questions Cloud

Compute each project payback period : Suzaki Manufacturing Corporation is planning three new projects, each requiring an equipment investment of $22,000. Each project will last for 3 years and produce the following cash inflows.

Calculate the work the crane performs : A certain type of laser emits light that has a frequency of 5.6 x 10^14 Hz. The light, however, occurs as a series of short pulses, each lasting for a time of 3.9 x 10-11 s.

Weschler and stanford-binet theory : Explain major ethical, legal, and sociocultural issues as they relate to the Weschler and Stanford-Binet in particular and IQ tests in general. Be sure to include the issue of test bias.

Journal entries-consignment sales : Green Lawn Chemical company sells lawn and garden chemicals through several hundred garden suppy stores and department store garden shops. Assume Green Lawn shipped goods costing Green Lawn $8400 and with a wholesale price (i.e. price to the retai..

Use annual compounding to calculate current price of bond : Nissan Company has a $1,000 par value bond outstanding paying annual interest of 7 percent. The bond matures in 20 years. The going rate of interest is 9 percent for this bond.

Write statement essential to call compute interest method : Write statement essential to call the calculate interest method with an account balance of $2300.00 and an interest rate of 5%. What rule must be adhered to when calling a method with multiple parameters?

Explain and suggest a key benefit for an employee : Explain and Suggest a key benefit for an employee to arbitrate rather than litigate and Provide support for your rationale.

Find the cars speed at the bottom of the dip : The weight of passengers on a roller coaster increases by 51 percent as the car goes through a dip with a 39 radius of curvature.What is the car's speed at the bottom of the dip.

Parental employment and early child care : Parental employment and early child care have a psychological effect on many individuals today.

User Account

All Pages