What is bonds coupon rate

Assignment Help Financial Management
Reference no: EM131347712

ABC Inc. just issued a twenty-year semi-annual coupon bond at a price of $1,000. The face value of the bond is $1,000, and the market interest rate is 9%. What is the bond's coupon rate?

Reference no: EM131347712

Questions Cloud

Does organization encourage positive organizational behavior : Does this organization encourage positive Organizational Behavior? If yes, how do they demonstrate this? If not, what type of Organizational Behavior do they seem to encourage?
Expected return on two stocks for particular market returns : Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: Market Return Aggressive Stock Defensive Stock 6% 2.8% 4.6% 15 28 10. What are the betas of the two stocks?
Find the net present value of project : Assuming a nominal rate of interest, convertible quarterly, of 12%, find the net present value of a project that requires an investment of $100,000 now, and returns $16,000 at the end of each of years 4 through 10.
About the company through its segmented data : Find the financial statements for a publicly traded company that provides segmented financial information. Prepare an overview (approximately 300 words) of what is revealed about the company through its segmented data. Post a link to the financial st..
What is bonds coupon rate : ABC Inc. just issued a twenty-year semi-annual coupon bond at a price of $1,000. The face value of the bond is $1,000, and the market interest rate is 9%. What is the bond's coupon rate?
Find the current yield on this bond : A 20-year bond with X% annual coupons has a face value of $1,000. The price of the bond is $1, 050. The interest rate is 8% convertible semiannually. Assume redemption value equals par value. Find the current yield on this bond.
Evaluate generation project with the cash flows : Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 –$ 39,400,000 1 63,400,000 2 – 12,400,000 a-1 What is the NPV for the project if the company requires a return of 10 percent?
Compute the parameters of black-sholes model : Using historical data for the five companies and assuming that the strike price K is lower than current stock price by 2 dollars and then risk free rate is 3%, find the following. The value of a 5-year call option price written on those stocks. Fi..
Why would the drug maker want to stymie generic competition : AIU BUSN310- Why would the drug maker want to stymie generic competition? Explain. What types of legal barriers to market entry exist? What are the possible ethical dilemmas present in this example?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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