What is bond current market price

Assignment Help Financial Management

Reference no: EM131322314

Madsen Motors's bonds have 7 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 9.5%; and the yield to maturity is 12%. What is the bond's current market price? Round your answer to the nearest cent.

Reference no: EM131322314

Questions Cloud

Accumulated savings and additional savings : A couple thinking about retirement decide to put aside $21,000 each year in a savings plan that earns 5.20% interest. In 6 years they will receive a gift of $72,000 that also can be invested. How much money will they have accumulated 24 years from no..

How much must you need saved once you reach retirement : You believe you will spend $175,000 a year for 16 years once you retire in 23 years. If the interest rate is 5.50% per year. How much must you need saved once you reach retirement. how much must you save each year until retirement to meet your retire..

What is present value of the winnings : The $63.0 million lottery payment that you just won actually pays $3.5 million per year for 18 years. If the discount rate is 12.60% and the first payment comes in 1 year. What is the present value of the winnings? What is the present value of the wi..

What is its yield to maturity and future price : A bond has a $1,000 par value, 8 years to maturity, and a 6% annual coupon and sells for $930. What is its yield to maturity (YTM)? Assume that the yield to maturity remains constant for the next 5 years. What will the price be 5 years from today?

What is bond current market price : Madsen Motors's bonds have 7 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 9.5%; and the yield to maturity is 12%. What is the bond's current market price?

Financial problem-sponsored retirement plan : You have employer-sponsored retirement plan. Assume, your age is 35 and you plan to retire at 65. You can contribute $3,600 per year to this plan. Your employer will match this amount. If you can earn an eight percent return on this investment, How m..

What is the cash break-even quantity : A project has the following estimated data: price = $46 per unit; variable costs = $31 per unit; fixed costs = $19,000; required return = 15 percent; initial investment = $18,000; life = six years. Ignoring the effect of taxes, what is the accounting..

What is mellow federal income tax withholding : Marsha Mellow’s weekly gross earnings for the present week were $1,250. Mellow has one exemption. Using the wage bracket withholding table in Exhibit 3 with a $75 standard withholding allowance for each exemption, what is Mellow’s federal income tax ..

Payback period criteria of not accepting any project : AMP, Inc., has invested $2,165,800 on equipment. The firm uses payback period criteria of not accepting any project that takes more than four years to recover costs. The company anticipates cash flows of $451,386, $512,178, $561,755, $764,997, $816,5..

User Account

All Pages