What is expected price of the bond in 4 yrs

Assignment Help Finance Basics
Reference no: EM133122769

par = 1000

Yrs to maturity = 25

Coupon = 8% paid semi-annually

B= 1.5

Rf = 4%

Market Risk Premium = 8%

What is expected price of the bond in 4 yrs? Assume the interest rate will remain the same.

Reference no: EM133122769

Questions Cloud

Estimate of the covariance between the assets : Suppose that the current daily volatilities of asset A and asset B are 1.6% and 2.5%, respectively. The prices of the assets at close of trading yesterday were
What amount of bad debt expense would the company report : Cash collections from credit customers totaled $1,950,000. What amount of bad debt expense would the company report in its first-year income statement
Is the initial margin requirement satisfied : Stock A's current market price is $100. You have $150 of cash in your account. The initial margin requirement and the maintenance margin requirement are both 50
Discuss the financial implications of tax losses : Mr Aidil is the Managing Director of Teguh Idaman Bhd. Discuss the financial implications of tax losses and firm's existing gearing level to proposed financing
What is expected price of the bond in 4 yrs : What is expected price of the bond in 4 yrs? Assume the interest rate will remain the same.
Prepare the journal entry to record the sale of the truck : Question - On July 1, 2016, Farm Fresh Industries purchased a specialized delivery truck for $175,600. Prepare the journal entry to record the sale of the truck
Determining the risk management strategy : Choose Intel (INTC) or Ford Motor Co. (F) or a company of your choosing which could benefit from a risk management strategy that uses futures.
What amount would ross report as taxable income : Ross Martin arrived at the following tax information: Gross salary $57,740 and Interest earnings 260. What amount would Ross report as taxable income
Determining the amount of liquid cash : If a corporation has a limited amount of liquid cash, it may choose to pay out a stock dividend. If the company is striving to maintain its current cash supply,

Reviews

Write a Review

Finance Basics Questions & Answers

  Harold has decided to keep danka in his portfolio even

harold rawlings has computed the returns he earned last year from each of the stock he holds in his portfolio. the

  What are the differences among a patent and a copyright

Equipment includes machinery used in manufacturing, computers and other office equipment, vehicles, furniture, and fixtures.

  What is the project average accounting return

If the plant has projected net income of $1,735,000, $2,105,000, $1,954,000, and $1,286,000 over these four years, what is the project's average accounting return (AAR)?

  Which of given put options would recommend for purchase

Mystery at Baker Street. Arthur Doyle is a currency trader for Baker Street, a private investment house in London. Baker Street's clients are a collection.

  What value would you assign to this bond

What value would you assign to this bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  Becoming a successful financial manager

How does the ability to manage personal finances make or break one's dream of becoming a successful financial manager?

  Explain the key differences between the simple moving

explain the key differences between the simple moving average weighted moving average and exponential smoothing methods

  What are money market mutual funds

In what assets do these funds typically invest? What factors caused the strong growth in this type of fund from 1992 through 2007?

  Purpose of balancing chemical reactions

For the purpose of balancing chemical reactions, it is necessary to ensure that reactants and products have same number of each type of atom.

  A new issue of common stock the flotation costs of the new

photochronograph corporation manufactures time series photographic equipment. it is currently at its target

  Defense acquisition university course

In regards to Defense Acquisition University Course BCF 110, Module 7, one of the questions states "Which one of the following categories of appropriations shou

  Calculate cost of common equity financing

Paul Sharp is CFO of Fast Rocket Inc. He tries to determine the cost of equity financing for his company. The stock has a beta of 1.53.

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