Value of that bond issued by risky business

Reference no: EM133264450

A United States Treasury bond pays annual interest, has a par value of $1,000, matures in 12 years, has a coupon rate of 1.19% per annum, and has a yield to maturity (YTM) of 8.37% per annum. The default risk premium on the bond issued by a United States company called Risky Business in the United States is 2.13% per annum. The bond issued by Risky Business pays annual coupon, has a par value of $1,000, matures in 12 years and has a coupon rate of 1.19% per annum. The current intrinsic value of that bond issued by Risky Business is $Answer. (Note: answer must be accurate to nearest cent, or 2 decimal places but you may leave your answer with more than 2 decimal places.)

Reference no: EM133264450

Questions Cloud

Why is death not necessarily a bad thing : 1. Why is death not necessarily a bad thing? (How does Epicurus argue that we should not fear death?+ Why would immortality not necessarily be good?

What will be the interest and principal portions : What will be the interest and principal portions of the payments for the first three months?

Valuation methodology of privately owned franchises : Value the subject firm taking care to explain the process/methodology to the client - valuation methodology of privately owned franchises versus publicly

Difference between linkage and networking : Relate the linkages and Networking with organizations in teaching as a future teacher, then the difference between linkage and networking in terms of teaching g

Value of that bond issued by risky business : value of that bond issued by Risky Business is $Answer. (Note: answer must be accurate to nearest cent, or 2 decimal places but you may leave your answer

Reflected in the (average) scores for each country : reflected in the (average) scores for each country on Hofstede's Individualism, Long-Term Orientation, and Uncertainty Avoidance dimensions.

Patient satisfaction and economic opportunity : Addressing post-acute care is both a patient satisfaction and economic opportunity. But why is that? What does that mean for the future of hospitals as they nav

What is the fra''s mark-to-market value : What is the FRA's mark-to-market value (in dollars) with a continuously-compounded discounting rate equal to 2.61% per annum for all maturities?

Estimate the wacc for unitron : MBA OL07 London Business School Dubai The company's stock is traded on the NASDAQ stock exchange. Unitron has a cost of equity capital equal to 10% and a cost

User Account

All Pages